MAC (Multiple Award Contract)

What is MAC (Multiple Award Contract)?

A Multiple Award Contract (MAC) is a type of government contract awarded to more than one contractor, allowing the government to procure similar goods or services from a pool of pre-qualified vendors. This approach provides flexibility and promotes competition, streamlining the procurement process. Task orders or delivery orders are then issued against the MAC to fulfill specific agency needs.

Definition

A Multiple Award Contract (MAC) is a contracting vehicle used by government agencies to establish long-term contracts with multiple vendors for a defined scope of services or products. These contracts are established through a competitive solicitation process, resulting in the award of contracts to numerous qualified offerors. The agencies then issue task orders (for services) or delivery orders (for goods) to the MAC holders based on specific requirements. FAR Part 16 provides guidance on the use of multiple award contracts, emphasizing the importance of fair opportunity and competition when awarding task or delivery orders. MACs are crucial for contractors because they provide access to a stream of potential task order opportunities and a chance to build long-term relationships with government agencies.

Key Points

• Fair Opportunity: Agencies must provide all MAC holders a fair opportunity to be considered for each task order exceeding $3,500 (the micro-purchase threshold), promoting competition.
• Scope Considerations: Contractors must carefully evaluate task orders to ensure they fall within the defined scope of their MAC to avoid potential protests.
• Team Arrangements: Contractors may form teams or joint ventures under a MAC to pursue larger or more complex task orders, increasing their competitiveness.
• Price Reasonableness: While the initial MAC award establishes fair and reasonable pricing, individual task orders must still be evaluated for price reasonableness, so contractors should remain competitive.

Practical Examples

1. GSA Schedule 70: GSA Schedule 70, a widely used MAC, provides government agencies with access to a wide range of IT products, services, and solutions from numerous vendors. Agencies can issue task orders directly to Schedule 70 holders for their IT needs.
2. CIO-SP3: The Chief Information Officer–Solutions and Partners 3 (CIO-SP3) is a large MAC used by the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC). It covers a broad range of IT services and solutions. Agencies issue task orders to the selected contractors to fulfill various IT requirements.
3. Alliant 2: Alliant 2 is a governmentwide acquisition contract (GWAC) that provides comprehensive IT solutions to federal agencies. It is a multiple award, indefinite-delivery, indefinite-quantity (IDIQ) contract vehicle. Task orders are competed among the awardees.