According to John Hutton the Director of Director of Acquisition and Sourcing at the Government Accountability Office (GAO) Federal spending for non-competed contracts dropped from 36% to 31% since 2005. Historically, sole source contracts have been linked to defense-related purchases based on specific requirements; GAO estimates that approximately 13% contracts government-wide are sole source contracts. isiFederal intelligence supports those statistics, but there is more to the story.
Smaller Percentage, Bigger Money
Looking more closely at the numbers, the dollar values are far more impressive with Singe Offer Received (SOR) contracts and it is across the board. Through intelligence research for hand tools we found 39% of those purchases sole sourced for $8.5M- most of them military. SOR contracts were only 7% but the dollar value was $86.8M nearly 67% of the total tool purchases.
Research for utility construction was sole sourced at a rate of less than 1% but SOR contracts garnered 64% of total contracts for $164M – that is 48% of all utility construction awards. Marketing and Advertising services intelligence revealed similar numbers with $1.2B in spending with 50% of all contracts having one response. How about logistics, 33% SOR, 82% had 4 bidders or less.
How can you develop sole source and single response contracts?
It comes down to relationships with buyers.
Source: Govloop.com and isiFederal Intelligence