Overview
This subpart establishes the policies and procedures for indefinite-delivery contracts, specifically highlighting the statutory preference for awarding multiple-award indefinite-quantity contracts. It also clarifies the relationship between these procedures and other specialized acquisition frameworks, such as GSA Schedules and Architect-Engineer services.
Key Rules
- Multiple-Award Preference: The regulation establishes a formal preference for making multiple awards of indefinite-quantity contracts rather than a single award.
- Relationship to Competition: These procedures do not limit or override the authority to use "other than competitive procedures" as authorized under FAR Part 6.
- GSA Supremacy: GSA regulations and Federal Supply Schedule program rules (FAR Subpart 8.4 and Part 38) take precedence over the rules in Subpart 16.5.
- Architect-Engineer (A&E) Exceptions: The multiple-award preference does not apply to A&E contracts under FAR 36.6; however, agencies may still choose to make multiple awards for A&E services if the selection and ordering follow the Brooks Act procedures.
- Small Business Integration: Procedures for setting aside orders or reserving awards for small businesses within multiple-award contracts are governed by FAR Subpart 19.5, not strictly by the general procedures in 16.5.
Practical Implications
- Regulatory Hierarchy: Contracting Officers must look to FAR 8.4 and Part 38 first when dealing with GSA Schedules, as 16.5 serves as a secondary authority in those instances.
- Acquisition Planning: When designing an acquisition strategy, agencies must document why a single award is being made if they bypass the multiple-award preference.
- Small Business Strategy: Agencies have the flexibility to use set-asides at the order level within a multiple-award environment to meet socioeconomic goals, provided they follow the cross-referenced rules in Part 19.