1. US Army Corps of Engineers BUILDING STRONG ® JACKSONVILLEMOBILESAVANNAHCHARLESTONWILMINGTON Trusted Partners Delivering Value, Today and Tomorrow IDIQs (SATOCs / MATOCs) FOR CONSTRUCTION Carlos D. Clarke District Contracting Chief USACE Jacksonville District December 9, 2015

2. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow Introduction The use of IDIQ contracts for construction has increased significantly in the past 20-30 years. This practice has come under scrutiny over concerns with compliance with the Competition in Contracting Act. 2

3. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow Background  Pros and Cons of IDIQ Contracts ► Consolidation of requirements ► Add services as requirements materialize ► Reduced acquisition cycle ► Less than full and open competition  Traditional Uses of IDIQ Contracts ► Construction vs. Non-Construction Requirements ► Preference for multiple awards ► Same or similar supplies or services 3

4. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow Consolidation  Use of a solicitation to obtain offers for a single contract or multiple award contract to: ► (a) to satisfy two or more requirements that have been provided or performed under two or more separate contracts at lower in cost ► (b) to satisfy requirements for construction projects to be performed at two or more discrete sites (15 U.S.C. 657q(a)(2) 4

5. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow CONSTRUCTION IDIQs  Initial Award – Major Considerations ► Approval of Consolidation ► Evaluation of Offers - Binding Prices Must evaluate binding prices for entire performance period ► Impact on competition ► Impact on SB concerns 5

6. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow Approval  Approval of D&F is required for: ► All IDIQ contracts for construction with total value over $2M ► Combination of projects identified by separate authorizations with total value over $2M ► Any single project authorization that includes multiple non-contiguous work sites with a total value over $2M 6

7. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow Factors to Consider  Conduct a Market Research  Identify alternative contracting approaches that would involve a lesser degree of consolidation  Make a determination that consolidation is necessary and justified  Identify negative impacts on SB concerns  Ensure steps will be taken to include SB concerns in the acquisition strategy  Negative impacts on competition (CICA) 7

8. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow Binding Prices  Must have binding prices for entire performance period for evaluation at the time of initial contractor selection(s)  A lack of binding prices for the entire period precludes evaluators from making meaningful price evaluations at the time of the initial award  Sample schemes for construction IDIQs 8

9. BUILDING STRONG Trusted Partners Delivering Value, Today and Tomorrow References  FAR 16.5 Indefinite Delivery Contracts  13 U.S. C.F.R., Small Business Act  DFARS 207.170, Consolidation of Contract Requirements  15 U.S. C.F.R. 657q. Consolidation of Contract Requirements  UAI Interim Policy Directive 15-IPD-01, Acquisition Planning 9