Federal contracting professionals know that indefinite delivery vehicles (IDVs) can be the most valuable contracts to hold. They provide more predictable long-term revenue under a simplified procurement process, and with limited competition. The federal government has demonstrated a growing preference for IDVs over the last decade as they save time and money for the agencies as well. More work is moving to the GSA Federal Supply Schedules (FSS) and Government-wide Acquisition Contracts (GWACs), and individual agencies are awarding broadly scoped indefinite delivery indefinite quantity (IDIQ) contracts with increasing regularity.
As I’ve been covering trends related to the fiscal year end and the federal buying season, I though it would be useful to highlight the high profile IDV procurements that are ramping up or closing before September 30. In this post, I’m going to start with a couple of existing vehicles that are up for re-compete.
- Solicitation status: Pre-pre-solicitation
- Due Date: Expression of interest likely to be due in September
- Ceiling: $12-15 billion (estimated)
- Award type: Multiple award - large and small business tracks
Encore II (like its predecessor, the original Encore IDIQ) is one of the most heavily used contracting vehicle for information technology (IT) solutions by defense agencies. Under the management of the Defense Information Systems Agency (DISA), the government obligates over $1 billion annually against Encore task orders. Northrop Grumman and Booz Allen are the most successful vendors under this vehicle, but 14 large companies and 12 small businesses hold Encore contracts and many have been quite successful.
ENCORE II - Dollars Obligated by Vendor
Encore II expires in May, 2018. However, correctly anticipating the popularity of the re-compete, DISA is already getting the ball rolling on Encore III. So far they have posted only informational notices, but have stated a prospective Draft RFP release date for August 2015 and a pre-solicitation conference date in September 2015
Recommended actions on GovTribe:
- Track the existing Encore III notice chain to stay on top of updates.
- Set an Alert for keyword “Encore” filtered to Agency “Defense Information Systems Agency” from the Project Explorer. This will catch any new notices in case DISA starts a new notice chain rather than updating the existing one.
- Review the performance of Encore II. Check out competitors and possible teaming partners among large and small businesses.
Information Technology Enterprise Solutions-3 Services (ITES-3S)
- Solicitation status: Draft RFP
- Due Date: Capabilities statements due 8/3/2015
- Ceiling: $12.1 billion
- Award type: Multiple award - 10 large, 14 smalls
ITES-2S is an Army-managed IT worldwide services contracting vehicle. It is technically available to all defense agencies, but Army makes the most use of it by far. Average annual obligations against ITES-2S task orders is about $1.5 billion, but the spend has been declining for the past three years. This may be at least part of the reason the ceiling for ITES-3S will be only $12.1 billion, compared to the current $20 billion ceiling.
ITES-2S - Dollars Obligated by Vendor
There is also a current, related small business vehicle - Information Technology Services - Small Business (ITS-SB). ITS-SB has roughly the same scope as ITES-2S but with a $400 million ceiling set aside for 13 small businesses. Microtechnologies LLC and M-Cubed have gotten the largest chunks of this vehicle, but the task order awards have been spread around a bit.
ITS-SB - Dollars Obligated by Vendor
ITES-2S technically expired in April but the government recently approved a three-year extension. ITS-SB expires on 2/14/16. It appears that ITES-3S is intended to replace both of the existing vehicles, which may imply an intent to award both the large business and the small business tracks for ITES-3S by the second quarter of 2016.
Recommended actions on GovTribe:
- Track the existing ITES-3S project notices to stay on top of updates. There are two notice chains (here and here) the Army has been using and we recommend tracking both.
- Set an Alert for keyword “ITES-3S” filtered to Agency “Department of the Army” from the Project Explorer.
- Set an Alert for keyword “Information Technology Enterprise Solutions 3” filtered to Agency “Department of the Army” just in case the Army posts updates using the full name instead of the acronym.
- Review the performance of the existing vehicles – ITES-2S and ITS-SB – to identify competitors and possible teaming partners.
If you are planning to pursue these opportunities, or any others, you can manage your pursuits using our Pipeline tool. You can view some help videos on Tracking, Alerts, Pipelines, and our competitor analysis tool Radar here on our Learn page.
In upcoming blog posts:
- 8(a) STARS II
- Enterprise Systems Development II
- The Worldwide Protective Services (WPS) 2
- And a special post on IDIQs for small businesses!