Definition
A Government-Wide Acquisition Contract (GWAC) is a pre-approved, accessible contract issued by a specific federal agency that is available for use by all government agencies. It primarily serves to streamline the procurement process for technology products and services. This contract reduces time and costs for government entities by eliminating the necessity to start the procurement process from scratch.
Phonetic
The phonetic pronunciation of the phrase “Government-Wide Acquisition Contract” is:Gov-uh-rn-ment-Wīd A-kwuh-zish-uhn Kon-trakt
Key Takeaways
Sure, here they are:
- Streamlined Procurement: Government-Wide Acquisition Contracts (GWACs) provide federal agencies with a streamlined process to procure goods and services. They are pre-competed contracts and agencies are able to order using a wide range of contract types and pricing arrangements, making it more efficient and cost-effective.
- Access to a Wide Variety of Resources: GWACs allow federal agencies to access a wide variety of resources, from IT products and services to solutions and technologies. They facilitate agencies in fulfilling their technical requirements in a timely and easy manner.
- Support to Socio-economic Goals: GWACs also support the federal government’s socio-economic goals. There are certain GWACs that are set-aside for small businesses or socially and economically disadvantaged businesses, helping these enterprises thrive through government contracts.
Importance
Government-Wide Acquisition Contract (GWAC) is a critical term in business and finance because it facilitates access to innovative solutions for various governmental agencies, thus optimizing and streamlining procurement processes. GWACs are pre-approved, multiple-award, indefinite delivery, and indefinite quantity (IDIQ) contracts that federal agencies can use to buy a vast range of information technology (IT) products and services. They are valuable because they save federal agencies time and resources by eliminating the need for them to go through the full and often lengthy procurement process on their own. Furthermore, GWACs often result in competitive prices, enhanced opportunities for small businesses, and the ability to meet socio-economic goals. Therefore, the ability to understand and utilize GWACs can be pivotal in business operations with government contracts.
Explanation
The Government-wide Acquisition Contract (GWAC) serves the main purpose of allowing federal agencies to buy cost-effective, innovative solutions for information technology (IT) under a pre-competed, multiple-award, indefinite delivery, and indefinite quantity (IDIQ) contract. Essentially, these contracts streamline the procurement process for the government by eliminating the need for individual agencies to negotiate and award their own contracts for every IT project. This saves the government time and resources, as it eliminates the redundancy of multiple agencies independently negotiating similar contracts.GWACs are used in diverse areas, ranging from systems design to software engineering, to information assurance, and more. Essentially, any federal agency needing IT solutions such as cloud services, cybersecurity tools, data center consolidation, AI, automation, etc., can utilize a GWAC. Moreover, these acquisition contracts often come with added benefits like training, program support, and ordering assistance for the federal agencies. Thereby, GWACs not only simplify the purchasing process but also ensure that agencies have access to the most current, competitive, and innovative IT products and services.
Examples
1. NASA’s Solutions for Enterprise-Wide Procurement (SEWP) Contract: This is a United States Government-Wide Acquisition Contract (GWAC) managed by NASA. It is an IT products and product-based services contract, making it an example of how GWACs can be used to unify procurement processes within a government agency and streamline access to IT solutions.2. GSA’s Alliant 2 GWAC: The General Services Administration (GSA) Alliant 2 contract is another prominent government-wide acquisition contract. This contract includes a broad array of IT services and solutions for federal agencies, combining pre-vetted, experienced contractors with a wide scope of IT capabilities.3. NIH’s CIO-SP3 Contract: The National Institutes of Health’s (NIH) Chief Information Officer-Solutions and Partners 3 (CIO-SP3) is a 10-year IDIQ (Indefinite Delivery/Indefinite Quantity) GWAC. This contract provides IT solutions and services, including health and biomedical-related IT services to meet scientific, health, administrative, operational, managerial, and information management requirements.
Frequently Asked Questions(FAQ)
What is a Government-Wide Acquisition Contract?
A Government-Wide Acquisition Contract (GWAC) is a pre-approved contract that permits government agencies to buy goods and services without having to navigate through the full procurement process.
Who typically uses a GWAC?
GWACs are most commonly utilized by federal agencies, but can also be accessed by state and local governments for certain purchases.
What is the purpose of a GWAC?
The main purpose of a GWAC is to streamline the procurement process, so that government agencies can more efficiently and effectively procure necessary goods and services.
What types of goods and services can be procured through a GWAC?
A GWAC can be used to procure a wide variety of goods and services, ranging from office supplies and furniture, to technology services and research and development work.
How is a GWAC established?
GWACs are established by various federal agencies that have been granted the authority to do so by the U.S. Congress. These agencies then contract with certain vendors, and other government agencies can order from these pre-approved contracts.
Can private businesses use a GWAC?
No, GWACs are specifically designed for use by government entities. However, private businesses can benefit by becoming contracted suppliers under a GWAC.
Are there limits to the value or volume of goods and services that can be procured through a GWAC?
The limits for each GWAC can vary widely, depending on the contract, the types of goods or services being procured, and the government agency managing the contract.
How can vendors benefit from being part of a GWAC?
Vendors who are part of a GWAC gain access to a large market of government customers, reduced competition due to the pre-approved nature of the contract, and the possibility of long-term agreements.
What is the duration of a GWAC?
GWACs generally have a base period of five years, with often one or more potential five-year renewal options.
Related Finance Terms
- Multiple Award Schedule (MAS)
- Federal Acquisition Regulation (FAR)
- Indefinite Delivery Indefinite Quantity (IDIQ)
- Contracting Officer (CO)
- General Services Administration (GSA)
