WILL NEW OMB LEADERSHIP RESTRICT USE OF CERTAIN CONTRACTS?

Rumblings close to the new administration’s transition team indicate that new OMB leadership may pick up – at least in one area – where the previous team left off.  Contractors with multiple contract vehicles should pay attention.  The Obama Administration floated a rule this past Fall that would have made Category Management mandatory for government agencies.  In essence, the rule would have required the use of a handful of IDIQ contracts that were considered “best in class” and made it difficult, if not impossible, for federal buyers to use other such contracts.  The rule was tabled due to strong industry opposition, but some close to the Trump Administration say that it could come back as one piece of a new management agenda.  Contractors that invested millions in obtaining specialized contracts to serve various client bases could see those investments come up short.  Similarly, agencies that defy a requirement to buy from certain vehicles could see their future budgets trimmed.  While making any source “mandatory” has a distinguished history of failure in federal acquisition, that doesn’t mean that new people might not try again.  Be prepared to protect your business regardless.