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Breaking Down GWACs, BICs, and MACs

It’s no secret that the GovCon ecosystem uses a lot of acronyms. For small businesses or organizations that are just starting out in GovCon, it’s important to understand the many terms used, like GWACs, BICs, and MACs, to get on the same level as competitors. We at The Pulse have organized a guide to understanding these federal contract types and how your organization can best use them.

GWACs

Government Wide Acquisition Contracts

A task-order or delivery-order contract for information technology products and services established by one agency for government wide use. GWACs are governed by the Clinger-Cohen Act and provide inter-agency access (inter-agency: between two or more agencies).

BICs

Best-in-Class Contracts

Government contract vehicles that are deemed the highest performing contracts by the Office of Management and Budget (OMB) because they defined “key criteria” for management maturity and data sharing. BICs are the primary tool critical to the operation of Category Management (CM). BICs are not limited to information technology vehicles.

MACs

Multi-Agency Contracts

An inter-agency contract that is governed by the 1932 Economy Act. MACs are also a task-order or delivery-order contract, but they are authorized to acquire a variety of supplies and services. However, GSA MACs are not subject to the Economy Act. These are not to be confused with Multiple-Award Contracts.

IDIQs

Intra-Agency Indefinite Delivery/Indefinite Quantity Contracts

An intra-agency (intra-agency: within the same agency) contract allows an agency to purchase an undefined quantity/delivery over a set period while being restricted within the awarding agency. The government uses these contracts when it cannot predetermine, above a specified minimum, the precise quantities of supplies or services that it will require during the Period of Performance.

History of GWACs, BICs, and MACs

So, which of these came first? Time for a quick history lesson.

Timeline:
1932: The Economy Act creates MACs.
1996: The Clinger-Cohen Act creates GWACs.
2005: GWACs are categorized as high-risk federal functions.
2012: Improving Acquisition Through Strategic Sourcing Memo.

In 2014, OFPP under OMB, announced its Category Management initiative (an evolution of Federal Strategic Sourcing Initiative [FSSI]) to further streamline and manage entire categories of spending across the government to act more like a single enterprise.
Both initiatives were established to accomplish the same goals of achieving significant savings, decreasing administrative redundancies, and improving business intelligence.

These goals were all meant to occur while also meeting or exceeding small business and sustainability goals. Category Management is meant to succeed where FSSI failed – in the implementation, utilization, and adoption of GWACs and MACs. Under Category Management, GWACs and MACs serve as the motivating force through the utilization of BIC solutions across a variety of federal agencies. BICs allow Category Management to achieve its objective to buy “as one” by consolidating all requirements into a limited number of preferred government-wide contracts.

How to Identify BICs

The most important thing to know here is that Google doesn’t help. There is a list from 2019, distributed by the Department of Energy, that shows BICs by category. This document states, “Always check the BIC Research Tool and Solutions Finder in the Acquisition Gateway for the latest BICs.” Online, using the Acquisition Gateway website, choose the Solution Finder, then filter using the “Govwide Initiative” option with “Best in Class” selected.

For those who are already familiar with BICs, it’s important to note that not every GWAC, BIC, or MAC started out as a BIC… Including:
Navy: SeaPort-NxG
GSA: Professional Services Schedule (PSS), Polaris
VA: Transformation Twenty-One Total Technology Next Generation (T4NG)
DOJ: Information Technology Support Services (ITSS-5)

Impact Across the Ecosystem

Since 2016, there has been a shift to consolidate federal procurement pathways under the Category Management initiative in the federal government.

Cost Savings: As of 2020, OMB has reported the federal government has saved $27.3 billion in 3 years.
Increased Requirements Bundling: Since the process focuses more on the contracting process, the approach to defining requirements has further broken down.

Less Access: BICs minimize channels for acquisition and reduce lanes where contractors can supply services and products. In the end, it’s very likely that the same vendors will be on GSA Polaris, as well as on HHS CIO-SP4, and most of them also on GSA 8(a) STARS III – with no differentiation. As a result, the government does not gain access to a wide range of solutions and services from the actual federal marketplace.

Impact Across the Ecosystem

Since 2016, there has been a shift to consolidate federal procurement pathways under the Category Management initiative in the federal government.

Cost Savings: As of 2020, OMB has reported the federal government has saved $27.3 billion in 3 years.
Increased Requirements Bundling: Since the process focuses more on the contracting process, the approach to defining requirements has further broken down.

Less Access: BICs minimize channels for acquisition and reduce lanes where contractors can supply services and products. In the end, it’s very likely that the same vendors will be on GSA Polaris, as well as on HHS CIO-SP4, and most of them also on GSA 8(a) STARS III – with no differentiation. As a result, the government does not gain access to a wide range of solutions and services from the actual federal marketplace.

In the Market/Industry: 

Fewer and fewer vendors have been successful in accessing, competing, and remaining in the market since the shift to BICs. There have been consequences of this competition downsizing. 

  • Competitors buying competitors or buying into a sector to increase revenue
  • Consolidation of firms with <1,000 employees through private equity 
  • Vendors diversifying into commercial or foreign markets
  • Vendors decreased ability to support and grow an internal workforce required to compete in the market

For Government Contractors: 

  • Less Access: The move to BICS has resulted in less access and transparency into government procurement activity and opportunities. 
  • Biggest in Class or Best in Class?: Teaming, JV, and Mentor-Protege have become vitally important for government contractors. To receive a contract award on one of these GWACs or MACs, a Prime contractor must either be one of the biggest players in the market or team up with enough companies to turn into one. 
  • Increased Bottom Line: Mixed messages and the usage of these procurement vehicles meant to simplify acquisition have proven hefty to vendors’ Bid & Proposal (B&P) bottom lines. Vendors spend tens of thousands of dollars trying to secure a place on specific GWAC, MAC, or BIC contracts because they know their survival in this marketplace could depend on it.
  • Small Businesses, Who?: There has been a continuous decline in small business vendor utilization across Best-In-Class (BIC) vehicles since FY19. 

How to Capitalize on GWACs, MACs, and BICs

Now that you’re armed with the knowledge of what these contract types are, their history and effects, let’s look at key ways to use them to your business’s advantage

Understand the difference.

  • Be selective in which ones you pursue based on on-ramping periods, scope & services, and your strategic goals for the future.
  • Remember that you don’t need every hot contract that hits the streets. Do what’s best for your business and pursue what’s right for your team.

Don’t let them sit dusty on your shelf.

  • BICs don’t make you money unless you leverage them.
  • Have a task order response cell (TORC) in place or else have a “participation” trophy.

Push new work to the ones you hold.

  • Know your buyers and customers, and who uses what.
  • Make these vehicles part of your sales effort and increase visibility through targeted marketing.

Knowing the differences and nuances of GWACs, MACs, and BICs will help you navigate the federal market successfully. Despite the federal shift to BICs that has led to decreased competition and other negative effects for contractors in recent years, it is still possible to successfully pursue and leverage these contracts.