1.2.1: Competition
Enhancing Competition Other Information:
Total government-wide spending on noncompetitive contracts increased significantly from $73 billion in FY 2000 to $170 billion
in FY 2008. Dollars obligated under contracts that were open to competition but generated only one bid also increased dramatically
from $14 billion in FY 2000 to $81 billion in FY 2008. To meet the President’s direction to reduce contracting risk, every
agency took steps to decrease by 10 percent the share of dollars obligated through new contracts in FY 2010 that are awarded
noncompetitively or after a competition that received only one bid. The chart to the right shows the percentage of dollars
obligated to new contracts awarded noncompetitively. To put progress on use of competition into a larger context, agencies
competed 66% of total obligations, which include new and existing contracts, in FY 2010. However, among the competed dollars,
a subset has received only one offer. The chart also shows the percentage of dollars that were obligated government-wide to
new competed contracts that received only one offer. The data is from the Federal Procurement Data System (FPDS). More information
is provided in the Frequently Asked Questions. Agencies made progress on decreasing noncompetitive contracting, though the
10 percent goal was not achieved in FY 2010. Agencies continue to work to increase competition in acquisitions. To attract
new sources and bidders, for example, some agencies broke out pieces of requirements that are most likely to attract additional
bidders, encouraging long-time subcontractors – who are in many cases small businesses – to consider competing as prime contractors,
and restructuring requirements in ways that more closely reflect how work is performed commercially. Others have worked to
improve their outreach to small businesses to help them more easily navigate the federal marketplace and identify opportunities
that best fit their capabilities.
Indicator(s):
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