Multi-Year Contracts Tool Offers Cost Reductions While Meeting Long-Term Needs
Multi-year contracts are used by the federal government to receive supplies or services for an extended period of time. This type of contractual relationship provides benefits for both the federal government and contractors. By including additional periods of performance in a contract, Buyers can save time down the road by extending subsequent awards to the same vendor for the same supplies or services originally rendered. These longer term agreements strengthen the relationship between the Buyer and Seller, and can contribute to better performance.
Through FedBid's patented reverse auction technology, Buyers realize upfront cost reductions by allowing vendors to initially compete on both base period and option period pricing. Buyers also achieve time-savings through FedBid's easy-to-use tool that automatically notifies the designated Buyer of an upcoming option period prior to the exercise date (notifications are received 90, 60, and 30 days out). Buyers remain in the driver seat as they can choose whether or not to exercise additional periods of performance to the vendor.
With a few clicks, FedBid Buyers can set up their requirement on the front-end to add additional option periods to their solicitation. This allows Buyers to benefit from the time and cost reductions of FedBid's marketplace, while also benefiting from the convenience and performance traits of option year contracts.
a Buyer in Indiana needed waste removal services for their facility, they
posted a multi-year contract requirement on FedBid. Firm fixed-price, simple
services requirements are commonly competed through FedBid's option-period format.
This buy showed strong competition, receiving four bids and enabling the agency
to realize $150,000 in savings over the 5-year contract.
you have a multi-year requirement that you would like to compete on FedBid
through this option-year format? FedBid offers one-on-one support for every
today and contact your dedicated Account Manager (information
located in the upper right-hand corner of the marketplace) or use FedBid's new
chat feature, located in the bottom right-hand corner of the marketplace, for assistance in setting up your requirement.
Whether it’s a single purchase order or a multi-year option buy, our full-service
team is ready to assist your procurement strategy, saving you valuable time and
giving you peace of mind in the fast-paced world of government procurement.
Not utilizing FedBid's marketplace yet? Register today and start posting your multi-year requirements.
Publisher: FedBid, Inc.
Released: April 17, 2017