Government-Wide Acquisition Contract - GWAC

AAA

DEFINITION of 'Government-Wide Acquisition Contract - GWAC'

A contract in which multiple government agencies align their needs and purchase a contract for goods or services. Government-wide acquisition contracts allow for economies of scale, which usually reduce per unit costs. These contracts are typically used to purchase of new technology, such as computers. A government-wide acquisition contract consolidates purchases as opposed to having each agency enter into an individual contract. This type of contract may be spearheaded by one particular agency with the expectation that more agencies will follow suit.

INVESTOPEDIA EXPLAINS 'Government-Wide Acquisition Contract - GWAC'

The rise of government-wide acquisition contracts has allowed government agencies to take advantage of their size in order to negotiate lower prices, and has created an environment in which a single vendor will provide product and service support to a larger number of personnel. By having one agency evaluate a vendor and move forward with an acquisition while leaving the contract open to additional government agencies, the federal government could reduce the likelihood that other agencies will have to "reinvent the wheel" by undertaking their own vetting process.

RELATED TERMS
  1. Economies Of Scale

    The cost advantage that arises with increased output of a product. ...
  2. Breach Of Contract

    Violation of any of the agreed-upon terms and conditions of a ...
  3. Diseconomies Of Scale

    An economic concept referring to a situation in which economies ...
  4. Unit Cost

    The cost incurred by a company to produce, store and sell one ...
  5. Economic Justice

    Economic justice is a component of social justice. It's a set ...
  6. Roll-Up Merger

    A rollup (also known as a "roll up" or a "roll-up") ...
Related Articles
  1. Top 6 U.S. Government Financial Bailouts
    Insurance

    Top 6 U.S. Government Financial Bailouts

  2. Is The U.S. Government Too Big To Fail?
    Retirement

    Is The U.S. Government Too Big To Fail?

  3. What Are Economies Of Scale?
    Economics

    What Are Economies Of Scale?

  4. How The IRS Works: Functions & Audits
    Taxes

    How The IRS Works: Functions & Audits

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center