Agencies must develop business case for interagency contracts

The Office of Federal Procurement Policy plans to issue guidance later this summer requiring agencies to develop a business case analysis before creating a multiagency contract, according to the Obama administration's top acquisition official.

Agencies must address the anticipated effect a proposed acquisition vehicle will have on the government's ability to leverage its buying power and how it would be different from existing agency contracts, OFPP Director Dan Gordon told the Senate Homeland Security and Governmental Affairs Committee. Agencies also will have to evaluate the costs of awarding and managing the contract and compare them to the likely fees that would be incurred with an existing interagency vehicle, he said.

"This process will help improve internal management and oversight of multiagency contracts," Gordon said.

The business case policy likely would apply to agency-, enterprise- and governmentwide acquisition contracts. Exemptions could be granted if other agencies' use of the contracts was expected to be minimal. OFPP also is weighing whether an independent reviewer should look over the business case analysis, particularly for information technology contracts.