Contract Consolidation: All You Need to Know, but Were Afraid to Ask

by Chris Wiedemann, Senior Analyst

Something that we’ve all heard about over the last few years, and particularly in the last year or so, is a trend toward contract consolidation. Consolidation efforts aren’t targeted at IT only, but are being put into practice across the entire government. Acquisition personnel and business owners are pointing to duplicative contracts and inadequate procurement methods as a major driver of unnecessary government spending and inefficiency. The solution, we’ve been told, is consolidation of common requirements into larger contract vehicles, like multi-agency contracts (MACs) or government-wide acquisition contracts (GWACs); this would enable the government to buy smarter
and focus more on achieving mission needs. There are some data points that seem to indicate consolidation is in the works – more and more bids are being received for each MAC task order, for example, and we’re also seeing much more competition for small business set-asides.

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