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BIC

Best-in-Class (BIC) Contracts

Learn about Best-in-Class (BIC) government contracts. Understand BIC designation, category management, and how BIC impacts government procurement strategy.

Overview

Best-in-Class (BIC) contracts are government-wide contract solutions designated by the Office of Management and Budget (OMB) as the preferred source for common goods and services across federal agencies. BIC designation represents the highest tier in the federal category management framework, indicating that a contract vehicle offers the best combination of pricing, terms, performance management, and administrative efficiency. Agencies are encouraged to use BIC contracts first before pursuing other procurement methods, making BIC status highly valuable for contractors who hold positions on designated vehicles.

When This Contract Type Is Used
  • When agencies need common goods or services covered by BIC categories
  • For streamlined procurement leveraging government-wide buying power
  • When OMB direction favors category management approach
  • For requirements where BIC vehicles offer best value
  • When agencies want to simplify acquisition process
Advantages
  • +Preferred status drives agency usage
  • +Government actively promotes BIC adoption
  • +Larger order volumes from consolidated buying
  • +Long-term positioning as market leader
  • +Reduced competition within BIC vehicle
  • +Visibility and credibility in marketplace
Disadvantages
  • -Limited BIC vehicles in each category
  • -Must already hold position on designated contract
  • -Increased scrutiny on performance and pricing
  • -May require renegotiation to meet BIC standards
  • -Agency mandates can change over time
  • -Not all categories have BIC designation
Understanding Best-in-Class Designation

BIC is the highest tier in the federal category management framework.

Category Management Tiers:

  • Best-in-Class (BIC): Government-wide mandatory use with metrics

  • Tier 2: Government-wide, preferred use

  • Tier 1: Agency-wide contract vehicles

  • Tier 0: Everything else (open market, single awards)

    • BIC Criteria:
    Contracts earn BIC designation by demonstrating:

    • Competitive pricing (benchmark comparisons)

    • Strong contract terms and conditions

    • Robust data collection and reporting

    • Effective demand management

    • Supplier management capabilities

    • Sustainability and socioeconomic considerations


    BIC Categories:
    Common categories with BIC vehicles include:
    • IT Hardware (SEWP, NASA SEWP)

    • IT Software (various)

    • Professional Services (OASIS, HCaTS)

    • Facilities Services

    • Travel and Transportation

    • Office Supplies

    • Medical Supplies


    Impact on Agencies:
    • Agencies expected to use BIC first

    • Must justify not using BIC when alternatives chosen

    • Spend under management tracked at agency and government-wide level

    • Agency leadership accountable for category management adoption

    Key Tips:

    • BIC status makes contract vehicles more valuable to contractors
    • Monitor OMB category management updates for new BIC designations
    • Position on BIC vehicles provides competitive advantage
    • Understand which vehicles have BIC status in your market
    Major BIC Contract Vehicles

    Several contract vehicles have earned BIC designation across categories.

    IT Hardware:

    • NASA SEWP V - BIC for IT products

    • GSA IT Schedule 70 (now part of MAS)


    IT Software:
    • Enterprise Software Initiative (ESI)

    • GSA Software products


    Professional Services:
    • OASIS - BIC for professional services

    • HCaTS - Human capital services


    Facilities:
    • GSA Building Maintenance and Operations

    • GSA Janitorial Services


    Travel:
    • GSA City Pair Program

    • GSA Scheduled Airline contracts


    Office Products:
    • GSA OS2 (Office Supplies)

    • FSSI Office Supplies


    How BIC Designation Works:
  • OMB identifies common spend categories

  • Evaluates existing contract vehicles against criteria

  • Designates qualifying vehicles as BIC

  • Agencies directed to prioritize BIC use

  • Usage tracked through spend analytics

  • Designations reviewed and updated periodically

    • Key Tips:

    • BIC designations change - monitor for updates affecting your contracts
    • Being on a BIC vehicle increases visibility to agency buyers
    • BIC spending data available through category management dashboards
    • Target BIC vehicles when building your contract portfolio
    Leveraging BIC Status for Business Growth

    Contractors on BIC vehicles can leverage this status for competitive advantage.

    Marketing BIC Status:

    • Highlight BIC designation in proposals and marketing

    • Emphasize streamlined ordering for agencies

    • Reference government preference for BIC solutions

    • Position as compliance with category management direction


    Growing BIC Revenue:
    • Track agency category management goals

    • Identify agencies not meeting BIC spend targets

    • Offer solutions that help agencies improve metrics

    • Build relationships with agency category managers


    BIC Reporting and Metrics:
    BIC vehicles require robust reporting:
    • Transactional data reporting

    • Pricing and discount tracking

    • Socioeconomic participation

    • Small business utilization

    • Customer satisfaction metrics


    Maintaining BIC Positioning:
    • Meet all reporting requirements

    • Maintain competitive pricing

    • Deliver excellent performance

    • Support government category management goals

    • Respond to BIC compliance reviews


    Strategic Considerations:
    • BIC positions are valuable long-term assets

    • Invest in maintaining compliance and performance

    • Build deep relationships with BIC program managers

    • Monitor for contract vehicle recompetes

    Key Tips:

    • Use BIC status as differentiator in task order competitions
    • Help agencies meet their category management goals
    • Maintain excellent performance to protect BIC positioning
    • Track government spend analytics to identify growth opportunities
    Understanding Category Management

    BIC is part of the broader federal category management initiative.

    What is Category Management?
    Category management applies commercial best practices to federal buying:

    • Consolidate spending across agencies

    • Leverage government-wide buying power

    • Standardize requirements where possible

    • Reduce duplication and administrative costs

    • Improve data-driven decision making


    Category Management Structure:
    • Category Managers: Lead strategy for each spend category

    • Spend Under Management: Metric tracking BIC/Tier 2 usage

    • Common Contract Solutions: Shared vehicles across agencies

    • Demand Management: Standardizing requirements


    Spend Under Management (SUM):
    Key metric for category management success:
    • Percentage of spend through BIC/Tier 2 vehicles

    • Target goals set by OMB (currently 60%+)

    • Agencies report and are held accountable

    • Creates pressure to use designated vehicles


    Impact on Procurement:
    Category management changes buying behavior:
    • Buyers expected to check BIC options first

    • Justification required for non-BIC purchases

    • Data collection enables price benchmarking

    • Standardization reduces customization


    For Contractors:
    • Understand category management priorities

    • Position on preferred contract vehicles

    • Support agency compliance goals

    • Adapt to standardization trends

    Key Tips:

    • Category management is reshaping federal procurement
    • Position your business to align with government priorities
    • Help agencies solve their spend under management challenges
    • Build expertise in category management terminology and metrics
    Example Contracts
    • 1NASA SEWP V order for enterprise IT hardware deployment
    • 2OASIS task order for program management support services
    • 3HCaTS order for training and human capital development
    • 4GSA OS2 order for agency-wide office supply requirements
    • 5GSA City Pair tickets for federal employee travel
    Frequently Asked Questions

    What does Best-in-Class mean?

    Best-in-Class (BIC) is the highest designation in federal category management. BIC vehicles are government-wide contract solutions that OMB has determined offer the best combination of pricing, terms, and performance. Agencies are directed to prioritize BIC vehicles for common purchases.

    How does a contract vehicle become BIC?

    OMB evaluates contract vehicles against criteria including pricing competitiveness, contract terms, data reporting capabilities, supplier management, and socioeconomic features. Vehicles meeting BIC standards receive designation, which is reviewed periodically.

    Are agencies required to use BIC contracts?

    While not absolutely mandatory, agencies are strongly encouraged to use BIC vehicles and must justify choosing alternatives. OMB tracks agency spend under management and holds leadership accountable for meeting category management goals.

    How do I get on a BIC contract?

    You cannot apply directly for BIC status. Instead, pursue positions on contract vehicles that have BIC designation (like SEWP, OASIS, etc.). If your existing contract receives BIC designation, you benefit automatically.

    What is Spend Under Management?

    Spend Under Management (SUM) is the percentage of agency spending that flows through BIC and Tier 2 contract vehicles. OMB sets SUM targets (currently 60%+), and agencies report progress. Higher SUM indicates better category management adoption.

    Does BIC status affect my contract pricing?

    BIC contracts are expected to offer competitive pricing. You may face pricing scrutiny or need to demonstrate price competitiveness to maintain BIC status. However, BIC status can increase volume, potentially offsetting lower margins.

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