Victory Against the Odds: GWAC Survival Tactics
Winning a government-wide acquisition contract (GWAC) sets agencies and their contractors up for long-term success by giving them an easy and cost-effective method to compete with their requirements and contractors’ long-term and predictable revenue streams for task order work. However, winning a GWAC is often time-consuming and challenging. Frequent amendments, delays, and protests require contractors to implement strategies and survival tactics to grasp victory despite difficult odds.
Why is Winning Challenging? A Quick Overview of Recent GWACs
In recent years, contractors surviving and winning GWACs and other multiple award contracts (MACs) have faced significant delays as the government works to release, review, and award contracts, as highlighted below.
Alliant 3
- Overview: A full land open (unrestricted) contract to provide IT services and solutions to government agencies.
- Request for Proposal (RFP) Release Date: June 28, 2024
- Number of Amendments: 1
- Proposal Due: October 28, 2024
- Protests and Decisions: None to date
- Estimated Award Date: February 2025
Chief Information Officer-Solutions and Partners (CIO-SP4) (Unrestricted Data)
- Overview: Provides IT services and solutions to government agencies, focusing on the agencies providing public health, clinical, and biological services.
- RFP Release Date: May 25, 2021
- Number of Amendments: 16
- Proposal Due: February 11, 2022
- Protests and Decisions: 135 and counting
- Estimated Award Date: April 2025
Polaris (Woman-Owned Small Business Pool Data)
- Overview:Provides IT services and solutions to government agencies, with four set-aside pools: small business, women-owned, HUBZone, service-disabled, and veteran-owned.
- RFP Release Date: March 25, 2022
- Amendments: 7
- Proposal Due: October 7, 2022
- Protests and Decisions: 16 and counting
- Estimated Award Date: After September 2024
Solutions for Enterprise-Wide Procurement (SEWP) VI
- Overview: After many years of providing products to government agencies, SEWP VI contains an extensive IT service category of interest to many new offerors.
- RFP Release Date: May 23, 2024
- Amendments: 6
- Proposal Due: Suspended in August 2024 until further notice
- Protests and Decisions: To be determined
- Estimated Award Date: Unknown
One Acquisition Solution for Integrated Services+(OASIS+) (Small Business Data)
- Overview: Provides agencies with integrated solutions across a wide variety of requirements worldwide.
- RFP Release Date: June 15, 2023
- Amendments: 6
- Proposal Due: October 20, 2023
- Protests and Decisions: 10
- Estimated Award Date: November 20, 2024*
*Previously, contracts were awarded to 1,383 small businesses across seven domains; however, protests filed by multiple companies against OASIS+ Small Business will move the award date back.
GWAC Risks and Rewards
The Rewards of GWAC Ownership
Winning a GWAC provides significant advantages, including a stable and predictable revenue stream. For example, out of $16.7B in CIO-SP3 unrestricted spending since FY2012, the top CIO-SP3 won $12.6B, or more than 75% of the total. Out of $12.3B in spending on CIO-SP3 small businesses since FY2012, the top 10 contract holders have won over $3.7B, or 44% of the total task order awards, and those initial small businesses have been merged with large businesses.
Additionally, GWAC’s ownership enhances a company’s credibility and access to a wide range of government projects. A GWAC win can also drive business growth by enabling investments in new technologies, fostering strategic partnerships, and achieving economies of scale. Overall, it positions a company for long-term success and expansion.
The Risks and Challenges of Participating in GWAC Bids
Working on GWACs can be a frustrating process for several reasons:
- The extended timelines often strain resources, requiring companies to invest significant time and effort without the assurance of a guaranteed payout date. Even the most promising bids can be altered or canceled without warning, disrupting carefully laid business plans and leading to wasted assets.
- The intense competition is another hurdle, as GWACs attract a large pool of competitors, including industry giants and their well-supported protégés. For smaller or newer companies, standing out in this crowded field requires meticulous planning and years of preparation.
- The prohibitive costs associated with bidding on GWACs can be daunting. Companies that maintain updated contract documentation, performance data, and certifications can significantly reduce their bid and proposal expenses. However, it’s not uncommon for small businesses to spend tens of thousands of dollars and large companies to spend hundreds of thousands, making the process financially burdensome, especially for those small businesses with limited resources.
Survival Strategies for GWAC Success
Despite the challenges, several strategies can help government contractors improve their chances of success and mitigate risks associated with bidding on GWACs.
- Diversify Your Contract Portfolio: Reduce reliance on a single GWAC by pursuing other contract vehicles like blanket purchase agreements (BPAs) or indefinite delivery, indefinite quantity (IDIQ) contracts. This approach balances your revenue stream and lowers dependency on winning a GWAC that could take years to award.
- Focus on Long-Term Relationships: Build strong relationships with government agencies. Understanding these agencies’ needs and preferences while exceeding their requirements can lead to longstanding relationships whether you use a GWAC, IDIQ, or BPA.
- Prepare for GWACs Early: If you are a small business, start planning five or more years before the RFP’s release. Most GWACs award contracts using a similar point system. So, focus on acquiring relevant past performance, industry certifications, business partnerships, and evidence of innovative technology needed to win. Aim to score 85-90% or higher of your chosen GWAC. Likewise, large businesses should keep their contracts, past performance, and industry certifications updated and ready to bid on GWACs.
- Build Strong Partnerships: If partnering is permitted, build partnerships with companies that can significantly enhance your competitive edge.
- Invest in Proposal Development: Given the high stakes, investing in top-notch proposal development is essential. Assemble a strong, well-trained proposal team to refine your processes continuously and stay current with best practices and tools.
- Stay Agile: Be ready to pivot in response to changes, like the cancellation of SEWP VI, and anticipate the next steps. Be prepared to reallocate resources quickly and put subject matter experts and proposal consultants on speed dial to address unforeseen amendments with short turnaround times.
- Protest as a Strategy: Many companies have used this survival tactic to win an award.Some protest early on to change a requirement to favor their circumstances or afterward to challenge thefairness and integrity of the GWAC. Nevertheless, these protests are most likely to rule in the government’s favor, so be prepared.
Conclusion
Winning a GWAC against these odds can be daunting. Companies that use the survival tactics described above can navigate the uncertainties of GWACs and position themselves for success by diversifying contract portfolios, staying agile, building solid partnerships, investing in proposal development, and focusing on long-term relationships with agencies. In a field where patience and persistence are essential, these tactics will help you stay on course and achieve your goals, even in the most challenging times.
Whether you need a long-term GWAC strategy, survival advice, or means to respond to short-term needs, Lohfeld Consulting has the resources to achieve your next GWAC victory.
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