A Tier 2 Contract Solution refers to a level within the Spend Under Management (SUM) framework used by the federal government to evaluate and improve the strategic management of procurement dollars. Tier 2 contracts are designated as “Government-Wide Solutions”, which means they meet several—but not all—key category management attributes established by the Office of Management and Budget (OMB).
Tier 2 sits just below Tier 3 Best-in-Class (BIC) solutions in the SUM hierarchy. While not as rigorously vetted as BIC contracts, Tier 2 contracts still represent a strategically sourced and managed approach to acquisition and are preferred over Tier 1 (agency-wide) or Tier 0 (unmanaged) spend. Agencies are encouraged to shift procurement toward Tier 2 and Tier 3 vehicles as part of their annual SUM targets and category management strategies.
Role of Tier 2 Contracts in Category Management
Category Management is a governmentwide strategy that organizes procurement into defined categories—such as IT, professional services, and facilities—and encourages agencies to make purchases using shared, strategically sourced contract vehicles. The SUM framework provides a tiered system to help assess the maturity and impact of contract solutions based on their level of oversight, data transparency, pricing controls, and usage tracking.
Tier 2 contracts play a key role in supporting this strategy by providing multi-agency access, fostering vendor performance tracking, and promoting cost and administrative efficiencies without requiring full BIC certification.
The strategic value of Tier 2 contracts includes:
- Encouraging smarter acquisition by reducing duplicate contracts
- Promoting agency collaboration and contract consolidation
- Supporting governmentwide visibility into purchasing behaviors and vendor performance
- Improving access to pre-competed solutions while reducing lead time for buyers
- Creating consistency in pricing, terms, and deliverables across agencies
Although not as heavily governed as Tier 3 contracts, Tier 2 vehicles still deliver measurable benefits that align with OMB’s broader acquisition reform goals.
Characteristics of a Tier 2 Contract Solution
To qualify as Tier 2 under the SUM framework, a contract vehicle must meet a specific subset of strategic sourcing attributes, typically evaluated by OMB in coordination with GSA, DHS, DoD, or other Category Management Leadership Council (CMLC) members.
Common characteristics of Tier 2 contract solutions include:
- Available for use by multiple federal agencies, even if managed by a single agency
- Includes centralized data collection for pricing, usage, and vendor performance
- Offers some level of pricing transparency, market research, or competition controls
- Supports standardized requirements and allows for shared specifications across government users
- Includes contract performance oversight, though not as extensive as required for BIC
- Contributes to agency SUM goals, helping meet OMB performance targets and acquisition reform mandates
Tier 2 contracts are often used as a pathway toward eventual Tier 3 (BIC) designation, especially as agencies enhance data reporting, vendor engagement, and cross-agency utilization.
Examples of Tier 2 Contract Vehicles
Tier 2 solutions are typically large, multi-agency contract vehicles that may include elements of strategic sourcing, consolidated purchasing, or governmentwide access. While GSA manages many Tier 2 contracts, other agencies may operate their own Tier 2-designated vehicles.
Examples of Tier 2 contract solutions include:
- GSA Multiple Award Schedule (MAS) — in instances where certain SINs or offerings do not yet meet full BIC criteria
- NASA SEWP (Solutions for Enterprise-Wide Procurement) — when used for specific, shared-use technology procurements
- VA Federal Supply Schedules (FSS) — select schedules that offer multi-agency utility but do not meet all BIC thresholds
- Department of Justice ITSS-5 (Information Technology Support Services) — available to DOJ components and eligible for interagency use
- Agency-wide IDIQ contracts open to other agencies, such as those managed by the Department of Homeland Security, Health and Human Services, or the Department of the Interior
The list of Tier 2 contracts is not static. OMB may revise designations based on updates to contract governance, reporting capabilities, and agency usage.
Implications for Agencies and Vendors
For federal agencies, using Tier 2 contracts helps meet Spend Under Management goals and ensures alignment with OMB’s directives for smarter, more efficient purchasing. Although Tier 3 BIC contracts are preferred, Tier 2 solutions are still viewed as compliant and strategically sound choices for acquisition planning.
For vendors, being part of a Tier 2 vehicle signals a level of competitive qualification and market presence. While it may not carry the same visibility or federal preference as BIC designation, Tier 2 participation can still lead to steady task order activity, interagency exposure, and opportunities for performance growth.
Agencies benefit from Tier 2 contracts by:
- Reducing procurement lead time through pre-vetted solutions
- Minimizing contract duplication and administrative burden
- Achieving partial credit toward OMB category management targets
- Accessing streamlined ordering procedures and flexible pricing structures
- Improving cross-agency collaboration and data sharing
Vendors benefit from Tier 2 contracts by:
- Gaining visibility across multiple agencies through a shared contract vehicle
- Positioning for future BIC designation by demonstrating compliance, usage, and performance
- Accessing recurring task order opportunities with centralized buyers
- Improving proposal competitiveness by being aligned with category management priorities
- Building a portfolio of federal experience that can be leveraged for future contract pursuits
Both buyers and sellers can track contract tier designations using OMB’s Category Management dashboards or GSA’s Acquisition Gateway tools.
Conclusion
A Tier 2 Contract Solution represents a key stepping stone in the federal government’s efforts to bring more procurement spending under strategic management. While not as fully governed or data-rich as Best-in-Class (Tier 3) solutions, Tier 2 vehicles still provide significant acquisition value, cross-agency utility, and streamlined sourcing for mission-critical needs. For agencies, they offer a compliant, strategic alternative to unmanaged spend. For contractors, they offer expanded market access and an opportunity to build toward greater federal visibility and long-term growth.
