Federal News Network’s The Federal Drive with Tom Temin got some startling facts on the shrinking contractor base from Deltek senior research manager Ashley Sanderson. A trend across the Federal sector is an increase in spending on acquisitions, but the number of small and large contractors is down.
There are fewer full and open competitions due to the greater use of task orders and GWACs (Government-Wide Acquisition Contracts) and the continued practice of consolidating requirements (“bundling”). Few of the open competitive solicitations are for new activities. Most of them are follow-ons of established programs which advantage incumbants. Meanwhile the growing demands of compliance with ethics, safeguarding, data privacy, and cybersecurity requirements are making it difficult for small and medium-size firms to keep-up.
USAID works actively to engage small and small, disadvantaged businesses, non-traditional and local partners, yet the limited Acquisition and Assistance workforce, pressures to move money, heavy reliance on ordering mechanisms, Leader With Associate (LWA) awards, the United Nations, and other challenges make it difficult to resist these trends to the detriment of a large portion of international development contractors and recipients.
