On October 14th a new provision of the Federal Acquisition Regulation (FAR) went into effect that you should be aware of. Noncompetitive contracts can be awarded under the “unusual and compelling urgency” exception, but only for a limited period of time now.
- In no event may agencies use this exception for more than one year unless the head of the agency determines that “exceptional circumstances” apply.
- The new rule applies to all acquisitions above the simplified acquisition threshold (currently $100,000).
- The rule adds a new provision to FAR 6.302-2, “Unusual and Compelling Urgency,” as required by § 862 of the National Defense Authorization Act (NDAA) for fiscal year 2009.
The new rule is intended to insure that federal agencies use full and open competition whenever possible, even when unusual and compelling circumstances exist. The General Accountability Office (GAO) recently began pressing agencies to cut down on excessive use of this exception. This new provision will make it difficult for agencies to use the “unusual and compelling urgency” loophole to avoid following the regulations.
This will open up some contracts that would otherwise never go through the competitive process. It is a step in the right direction.
