CONTRACTORS SHOULD EXPECT NON-TRADITIONAL ACQUISITION METHODS TO GROW
The federal government acquisition system moves too slowly to meet evolving national security needs according to both US and non-US observers. In addition, the practice of trying to use the federal procurement system to meet varied socio-economic goals adds to the regulatory overhead. These are just two reasons why contractors should expect non-traditional acquisition methods such as Other Transaction Authority and SBIR contracts for small businesses to grow. The need to have an efficient, effective acquisition system is becoming especially acute due to unsettling international developments, according to Moshe Schwartz, president of Etherton & Associates. Schwartz spoke last week at the Coalition for Government Procurement Spring Conference and painted a stark, but accurate, picture of the shortcomings inherent in today’s federal acquisition system. These include over-reliance on decentralized supply chains, an issue of concern echoed by many conference speakers. Greater use of non-traditional acquisition methods will be essential to attracting innovative new market entries and ensuring that solutions are deployed in a timely manner. When protests and organizational hurdles (see the story below) slow traditional acquisition methods, agencies must find new ways to meet critical mission needs. Data from Bloomberg Government shows that OTA use reached nearly $16 billion in FY’23, up over $4 billion from the previous year. As previously noted, SBIR use reached $5.5 billion last year, up significantly since 2020. It is no surprise, therefore, that both small and large businesses are seeking ways to use the SBIR path to drive the acquisition of critical solutions. Indeed, GSA’s innovative acquisition assisted services office is making SBIR acquisitions a cornerstone of its operation. Contractors should both anticipate and promote the use of non-traditional acquisition methods, especially when time is of the essence for project delivery. While it should be obvious that the clogged heart of acquisition is making these bypasses necessary, that may be a discussion for another day.