GSA Clarifies that the upcoming Polaris SB and Service MAC GWACS will not have Ceilings!

Blog
June 16, 2022

Certain outlets have been reporting that Polaris will have a $50 billion ceiling but according to GSA, that is not true. Polaris and ultimately the Services MAC will be the first GWACs awarded without a ceiling. Per GSA the lack of a ceiling is designed to ensure the availability of the vehicle for customers and maximum opportunity for contractors. It appears GSA does not want to repeat the issues experienced by both industry and Agencies when the STARS II GWAC reached its ceiling 16 months early.

In order to do this GSA issued a class deviation to override the FAR Part 16.504 requirement that IDIQ contracts should contain a maximum quantity. Some procurement attorneys have already questioned whether GSA has the authority to do that, as the FAR requirement stems from the Federal Acquisition Streamlining Act, which is a law. There is also a concern that an unlimited ceiling on Polaris may reduce opportunities for small businesses elsewhere.

It will be interesting to see what happens from an academic standpoint but the change from a $50 billion ceiling to an unlimited ceiling is not likely to affect any bid decisions.  For questions please reach our experts at govconhelp@aronsonllc.com.