Competition In Contracting Act - CICA

AAA

DEFINITION of 'Competition In Contracting Act - CICA'

A policy established in 1984 to encourage competition for government contracts. The idea behind the policy is that the increased competition will result in improved savings to the government through more competitive pricing. The Act applies to all solicitations for bids issued after April 1, 1985.

INVESTOPEDIA EXPLAINS 'Competition In Contracting Act - CICA'

The CICA provides for full and open competition in the awarding of government contracts. The procedure includes sealed bidding and competitive proposals. CICA mandates that any contract expected to be greater than $25,000 must be advertised at least 15 days prior to bid solicitation. This advertising is intended to increase the number of bidders competing for government contracts, thereby allowing for full and open competition. CICA required the government to follow these procedures with limited exceptions; any departure from CICA must be documented and approved by the appropriate government official.

RELATED TERMS
  1. Perfect Competition

    A market structure in which the following five criteria are met: ...
  2. Non-Competition Agreement

    A legal agreement in which one party is restricted from working ...
  3. Capital Budgeting

    The process in which a business determines whether projects such ...
  4. Capital Rationing

    The act of placing restrictions on the amount of new investments ...
  5. Build-Operate-Transfer Contract

    A type of arrangement in which the private sector builds an infrastructure ...
  6. Capital Reserve

    A type of account on a municipality's or company's balance sheet ...
Related Articles
  1. What Is Fiscal Policy?
    Economics

    What Is Fiscal Policy?

  2. Explaining The World Through Macroeconomic ...
    Options & Futures

    Explaining The World Through Macroeconomic ...

  3. Do Tax Cuts Stimulate The Economy?
    Taxes

    Do Tax Cuts Stimulate The Economy?

  4. Current Account Deficits: Government ...
    Budgeting

    Current Account Deficits: Government ...

Hot Definitions
  1. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  4. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  5. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  6. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
Trading Center