The Importance of GWAC Access for Federal Contractors

In the competitive landscape of federal contracting, gaining access to new Government-Wide Acquisition Contracts (GWACs) is crucial for contractors aiming to secure a steady stream of government business. GWACs are pre-competed, multiple-award, indefinite delivery, indefinite quantity (IDIQ) contracts that provide federal agencies with a streamlined procurement process for acquiring solutions and services. Here’s why access to new GWACs is vital for federal contractors, and the market impacts of a lack of access that should be considered.

Reasons for Federal Contractors to Pursue Greater GWAC Access

1. Competitive Edge and Market Share
   
   Access to new GWACs allows federal contractors to compete for a broader range of government projects. These contracts are often associated with significant funding and long-term opportunities, providing a stable revenue stream. Without access to GWACs, contractors may find themselves at a competitive disadvantage, unable to bid on larger projects that are only available through GWAC access. This can lead to a loss of market share and diminished business growth.
2. Streamlined Procurement Process
   
   GWACs simplify the procurement process for both contractors and federal agencies. They eliminate the need for repetitive bidding processes, reducing administrative burdens and accelerating project timelines. Contractors with access to GWACs can benefit from a more efficient procurement cycle, allowing them to focus on delivering high-quality solutions rather than navigating complex procurement procedures. Conversely, a lack of access can result in increased administrative costs and slower project initiation.
3. Enhanced Visibility and Credibility
   
   Being awarded a GWAC enhances a contractor’s visibility and credibility within the federal marketplace. It signals to potential clients that the contractor has met rigorous government standards and is capable of delivering reliable IT solutions. This can lead to additional business opportunities and partnerships. Contractors without GWAC access may struggle to establish the same level of trust and recognition, limiting their ability to attract new clients.

Impacts of Limited GWAC Access & Potential Solutions

When federal contractors lack access to new GWACs, their markets can experience several negative impacts:

1. Requirement "Influencing": Federal agencies often are influenced by the contractors that they have the most familiarity with when it comes to deciding on an avenue for procuring services. This means that opportunities may be shifted to GWACs based on customer preferences. Without visibility into the GWAC, federal contractors can potentially lose out on revenue for work that is in their wheelhouse.
2. GWAC/ Contract Vehicle Disappearance: GWACs and other contract vehicles can "disappear" when federal agencies abandon one in favor for another, or if the vehicle closes and is replaced with a new one. Limited GWAC access can potentially threaten the revenue that a contractor has been dependent upon if the GWAC responsible for the majority of your market share disappears.
   • For federal contractors, one potential way to mitigate this would to ensure past performance on multiple GWACs, whether that is through being a prime contract holder, or acting as a subcontractor to expand customer intimacy or work by specific NAICS.
3. Limited Understanding of Teaming Partners & the Market: GWAC contract holders often use teaming strategies to ensure that they have the technical fit or experience needed to win opportunities within GWACs.
   • This offers contractors without a GWAC position to gain access to larger chances for revenue, on top of gaining vital past performance with less risk than is faced by primes in the competition process.
     • Platforms that offer comprehensive market data visualization offer a solution for contractors faced with this issue.
4. Innovation Stagnation: GWACs are awarded 10 years at a time, which means the the Statement of Work (SOW), will exclude rapid developments as time goes on. An example of this is the IT market where AI/ML technologies have boomed, but were not encompassed in the Alliant SB SOW. The Polaris GWAC's SOW will encompass these new developments, but in the next 10 years, the GWAC's SOW will follow the same cycle.
   • To prevent the exacerbation of this issue that can occur because federal contractors don't have comprehensive GWAC access, teaming on other GWACs or contract vehicles that fill in the requirement gaps can allow your business to continue developing past performance and capabilities.
     • When a new GWAC is competed where these missing needs are present in the SOW, you can be prepared for potentially expanding through pursuing holding a GWAC contract.

To summarize:

Gaining access to new GWACs is essential for federal contractors to maintain a competitive edge, streamline procurement processes, and enhance their market presence. The broader market benefits from increased competition, innovation, and economic efficiency when more contractors have the opportunity to participate in GWACs. Therefore, ensuring equitable access to these contracts is vital for a healthy and dynamic federal contracting ecosystem.