AGC Says MATOCs Can Limit Competition, Recommends Changes

Although not opposed to federal agencies use of Multiple Award Task Order Contracts (MATOCs) and Multiple Award Construction Contracts (MACCs) generally AGC of America is concerned that these contracts can limit competition for federal construction projects are not always structured and administered to make the best use of taxpayers money.

Several months ago AGC of America created a task force of large medium and small federal contractors that produced a formal document stating the association’s official position on federal contracting. This document will be sold to federal agencies and lawmakers in the coming months and years. Loren Pease Pease Construction served on the task force.

Highlights of AGC of Americas Policy Position on MATOCs and MACCs include:

  • Agencies should carefully balance procurement through MATOC/MACCs with procurement through full and open individual contract competition. Agencies should annually determine the appropriate balance of available contracting funds and number of projects of various sizes to be procured through multiple award contracts versus full and open competition. This balance should be achieved in each region or local market served.
  • Federal agencies should limit MATOC/MACC contract lifespan to three years. As it stands these contracts can extend for five years and in effect shut out other contractors from agency work for that same period. Five years is a particularly long span for federal construction contractors especially small business contractors to conceivably go without having federal work to bid on in their market area.
  • Agencies should allow contractors to both leave and enter MATOC/MACCs at set times i.e. once a year or once every six months. Contractors note that agencies can and have misused these contracting vehicles by allowing significant “scope creep” in soliciting construction services which the selected contractors are not necessarily best equipped to handle.
  • Federal agencies should confine MATOC/MACCs to smaller defined geographical regional areas. As it stands federal agencies may award these contracts for geographical areas covering an entire coast span or the entire world sometimes based on only one type of facility. Such large geographically covered areas make it difficult for smaller contractors to compete.

For more information contact AGC Southern District Manager Tim Attebery 253-896-0033.