Expiring federal contracts are multi-year contracts that are often recompeted or replaced by a new contract when it is completed. These contracts are for situations where a government agency regularly needs a certain service or product—for example, laptops for employees. A contract does not become an expiring contract for a one-time or infrequent need, such as replacing the roof of a government building.
What Happens When Federal Contracts Expire?
There are a few different outcomes for expiring contracts when the time of the contract is up. The contract may:
1) Be recompeted and a new contract will be awarded
3) Replaced with a different contract
2) Extended for a period of time (called a “logical follow-on”)
4) Not be recompeted at all if it is not needed anymore (a situation called "sunsetting")
Most frequently, the expiring contract will be either recompeted or replaced. Contracts will be listed as recompetes on FPDS.gov, along with other key information, including the total contract amount, the amount that has been exercised, and the timeline for the contract. The process for renewing an expiring contract, or for putting it up for recompete, usually begins roughly a year in advance of the end of the contract. However, this period of time can vary. Federal contractors must be aware of the timelines of expiring contracts they wish to pursue and be proactive in reaching out to buyers.
Who wins expiring contracts?
These types of contracts are awarded to contractors who have performed well on shorter-term contracts and have a good CPARS rating—and who have a relationship with the buyer. The federal government will not award expiring contracts, or multi-year contracts, to first-time contractors. Contractors who are new to the federal market must win shorter-term contracts and perform well on them to establish themselves as a possible vendor for expiring contracts. Additionally, developing relationships with the buyer is essential. Buyers often default to the contractor that has been regularly performing on an existing expiring contract, and the best way to stand out is to reach out directly to the buyer.
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