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 Reserve

    A type of account on a municipality's or company's balance sheet ...
  4. Build-Operate-Transfer Contract

    A type of arrangement in which the private sector builds an infrastructure ...
  5. Capital Rationing

    The act of placing restrictions on the amount of new investments ...
  6. Capital Budgeting

    The process in which a business determines whether projects such ...
RELATED FAQS
  1. How can a nation adopt an export policy based on the economies of scope?

    A nation as a whole can adopt an export policy based on the economies of scope by focusing production on goods and services ... Read Full Answer >>
  2. What's the difference between short-term investments and marketable securities?

    The chief difference between federal and state withholding taxes is that state withholding is done based on state-level tax ... Read Full Answer >>
  3. How can data assist operations management in increasing efficiency?

    Pork barrel politics affect the economy in several ways. Pork barrel spending occurs when the government earmarks funds to ... Read Full Answer >>
  4. What are some examples of different corporate governance systems across the world?

    Different corporate governance models have become increasingly scrutinized and analyzed as globalization takes hold in world ... Read Full Answer >>
  5. How can I find out the Medicare sustainable growth rate?

    Per the Social Security Act, the Medicare Payment Advisory Commission is required to make an estimate of the sustainable ... Read Full Answer >>
  6. What incentives are there for a given country to enforce sustainable growth rate ...

    There are strong incentives for a country to expressly support sustainable growth rate (SGR) policies for domestic industry. ... Read Full Answer >>
Related Articles
  1. Economics

    What Is Fiscal Policy?

    Learn how governments adjust taxes and spending to moderate the economy.
  2. Options & Futures

    Explaining The World Through Macroeconomic Analysis

    From unemployment and inflation to government policy, learn what macroeconomics measures and how it affects everyone.
  3. Taxes

    Do Tax Cuts Stimulate The Economy?

    Learn the logic behind the belief that reducing government income benefits everyone.
  4. Budgeting

    Current Account Deficits: Government Investment Or Irresponsibility?

    Deficit can be a sign of trouble for some countries, and of health for others. Find out what it means when more funds are exiting than entering a nation.
  5. Taxes

    Understanding Income Tax

    Income tax is a levy many governments place on revenue of entities within their jurisdiction.
  6. Economics

    What's a Regressive Tax?

    A regressive tax is a levy in a tax system where the tax rate does not change based on the level of income.
  7. Economics

    What To Expect Following The Tory Triumph

    The decisive Conservative victory in the UK's recent general election removes some of the near-term political uncertainty that many were anticipating.
  8. Professionals

    What the DoL’s Fiduciary Policy Means for Advisors

    After many delays, the DoL's new fiduciary policy is coming. Here's an overview on what financial advisors should expect.
  9. Entrepreneurship

    What's the Verdict on START-UP NY?

    START-UP NY is an initiative designed to attract companies to New York State by giving them 10 years of tax breaks. Sounds good, but is it a success?
  10. Economics

    The Pros & Cons of a Trade Deficit

    Is a trade deficit, also known as a current account deficit, beneficial or detrimental to a country's economy?

You May Also Like

Hot Definitions
  1. Productivity

    An economic measure of output per unit of input. Inputs include labor and capital, while output is typically measured in ...
  2. Variance

    The spread between numbers in a data set, measuring Variance is calculated by taking the differences between each number ...
  3. Terminal Value - TV

    The value of a bond at maturity, or of an asset at a specified, future valuation date, taking into account factors such as ...
  4. Rule Of 70

    A way to estimate the number of years it takes for a certain variable to double. The rule of 70 states that in order to estimate ...
  5. Risk Premium

    The return in excess of the risk-free rate of return that an investment is expected to yield. An asset's risk premium is ...
  6. Product Line

    A group of related products manufactured by a single company. For example, a cosmetic company's makeup product line might ...
Trading Center