What Is a Government-Wide Acquisition Contract (GWAC)?

What Is a Government-Wide Acquisition Contract (GWAC)?

Let me explain what a government-wide acquisition contract, or GWAC, really is. It's a contract where multiple government agencies come together to align their needs and buy from external providers for goods or services. You see, GWACs let these agencies get new technology—like computers and IT solutions—at a better price, since it's the taxpayers paying the bill in the end. Often, one agency takes the lead on the contract, expecting others to join in. This setup creates economies of scale, which typically drive down the cost per unit.

Key Takeaways

Here's what you need to know right away: A GWAC is where multiple agencies buy products or services together to cut costs. They're mostly for new technology, especially IT solutions. You can access them through the U.S. General Services Administration, NASA, and the National Institutes of Health. And over the years, GWACs have become more popular than single-agency contracts.

Understanding Government-Wide Acquisition Contracts (GWACs)

As I mentioned, GWACs are contracts for IT and computer-related services that government agencies get from third-party providers. Usually, one agency starts it, and others jump on board. This way, by having just one agency vet the vendor, the federal government avoids everyone reinventing the wheel with their own separate checks.

These contracts give access to IT solutions like systems design, software engineering, information assurance, and enterprise architecture. They're often handled through the GSA, NASA, and NIH. These organizations let the government snag various contracts for IT solutions at low costs from approved tech companies.

The growth of GWACs means agencies can leverage their collective size to negotiate better prices. This eases the load on taxpayers, who foot the bill. Plus, it sets up a scenario where one vendor supports products and services for more people across agencies.

Important Note

Remember, a GWAC consolidates purchases instead of each agency doing its own individual contract.

Special Considerations

You should know about the GWAC Prices Paid Tool, which gives federal agencies detailed info on how their IT dollars are spent on GSA GWACs. It helps with realistic price analyses, negotiations, and independent cost estimates, and lets agencies benchmark competitive prices.

In fiscal year 2022, government contracts hit about $694 billion. That covers categories like software, food, healthcare, and aircraft. The Department of Defense spent the most at $414.5 billion, with the Navy leading at $123.9 billion. Civilian agencies totaled $279.7 billion, topped by Veterans Affairs at $56.2 billion, the Department of Energy at $42.9 billion, and HHS at $38.9 billion.

Fast Fact

GWACs are delivery- or task-order contracts, meaning they don't specify a fixed amount of services. Instead, terms are set for a period, and the provider delivers unlimited services until it expires. For example, Company X might provide unlimited IT solutions to three agencies for a full year.

Types of GWACs

There are several types you should be aware of. The 8(a) STARS III has a $50 billion ceiling for a five-year base, with an option for three more years, focusing on small businesses for IT and IT services-based solutions. VETS 2 is set aside for service-disabled, veteran-owned small businesses, providing IT systems including new technologies, with a $5 billion ceiling through the GSA. Alliant 2 (A2) offers IT solutions as a total package—hardware, software, and services—also via the GSA. NASA's SEWP provides tablets, desktops, servers, IT peripherals, network equipment, storage, security tools, software, cloud services, and more. And NITAAC, through HHS and NIH, runs CIO-SP3, CIO-SP3 Small Businesses, and CIO-CS for IT commodities.

Why Are Government-Wide Acquisition Contracts Used?

GWACs are used to give government agencies IT and computer services at reduced costs. The concept is that one agency starts the contract, expecting others to join, and providers offer services for a set time rather than a fixed quantity.

What Is an Indefinite Delivery, Indefinite Quantity Contract?

An indefinite delivery, indefinite quantity contract is for goods and services that run for a certain time frame. It streamlines speed and delivery when you can't pin down the exact quantity.

What Is a NASA SEWP Contract?

A NASA SEWP contract is a GWAC that procures and provides IT products and services for federal agencies. NASA initiates it as the executive agent, and other agencies can sign on to cut costs.

The Bottom Line

Government agencies turn to GWACs to lower the cost of IT services. One agency leads as the initiator, with others joining to share the benefits and reduce expenses, passing savings to taxpayers.