New Definition Proposed for "Multiple-Award Contracts

The FAR councils are proposing to add a new definition to FAR 2.101 to define "multiple-award" contracts. One really has to wonder why a definition is needed here since we already have FAR Part 38, Federal Supply Schedule Contracting, and FAR 16.5, Indefinite-Delivery Contracts which covers those types of contract in detail. But, reading through the fine print, we find that it is a requirement embedded into the Small Business Jobs Act of 2010.

Although this is a proposed rule, the definition of multiple award has already been incorporated into the SBA rules at 13 CFR 125.1(k).

Here is the new proposed definition:

A Multiple-award contract means a contract that is

1. A Multiple Award Schedule contract issued by GSA (e.g. GSA Schedule Contract) or agencies granted Multiple Award Schedule contract authority by GSA as described in FAR part 38;
2. A multiple-award task-order or delivery-order contract issued in accordance with FAR subpart 16.5, including government-wide acquisition contracts; or
3. Any other indefinite-delivery, indefinite quantity contract entered into with two or more sources pursuant to the same solicitation.