DoD contractors lobby Congress against competition

As the Army prepares to choose the new builder of its handheld digital radios, the incumbent contractors are tryiing to convince Congress to keep other companies out. The incumbents are General Dynamics, which publicly apologized to the Army over its half of the program last year, and Rockwell Collins. The Army’s own chief of acquisitions, Lt. Gen. William Phillips, told the Senate Armed Services Committee just yesterday that “the industry partners that were not a part of the program of record” — i.e.  the troubled JTRS (Joint Tactical Radio System) program, which had contracted Rockwell and GD — provided “radios that were cheaper, better capability and met almost all of our requirements in most cases”. The service, he said, was committed to “full and open competition.”

We saw a similar play already last year, albeit slightly later in the legislative process, when Reps. Dave Loesback and Trent Frank offered an amendment – later withdrawn – that would have required competitors to meet stringent conditions that effectively ruled out radio-builder Harris and other outsiders, thereby protecting General Dynamics. This time it is co-incumbent Rockwell Collins, which splits the current contract with GD, that’s leading the charge.

Keep reading this article at: http://breakingdefense.com/2013/05/09/army-radios-contractors-lobby-congress-against-competition

OFPP brings no predisposed notions to strategic sourcing

The Strategic Sourcing Leadership Council delivered a set of proposals for how and where to expand the Federal Strategic Sourcing Initiative.

But not every suggestion sent to the Office of Federal Procurement Policy in March was about a new contract or expanding a current blanket purchase agreement.

Joe Jordan, the administrator of OFPP, said the council wants to move forward with a number strategic sourcing efforts, including technology hardware and software, laboratory supplies, janitorial and sanitation, mobile and wireless products and services and others.

“We are now working with them to say ‘what is the solution?’ It doesn’t mean in all those categories, there is one governmentwide contract,” Jordan said, after a panel discussion on strategic sourcing at an event sponsored by the Coalition for Government Procurement in Arlington, Va. Wednesday. “We are putting all that commodity under management with an executive agent that has a deep content knowledge and all of the large buyers at the table, along with the Small Business Administration, to figure out what the right solution is. In some cases, it will mean reduced contract duplication, better leveraging our spend and driving volume based discounts. In other cases, it’s more terms and conditions and taking administrative costs out of the approach.”

Keep reading this article at: http://www.federalnewsradio.com/517/3290214/OFPP-brings-no-predisposed-notions-to-strategic-sourcing

Federal IT funds circle the drain due to poor procurement policies

It may seem like a simple thing to fix — if the U.S. government wants more vendors to compete for contracts, just ask more companies to take part. However, those looking to reform the procurement process are running into snags that favor the status quo, and a new survey shows just how much money is wasted. A greater emphasis on open standards and boosting the role of CIOs are two possible solutions now being studied.

Federal agencies routinely pass up opportunities to improve information technology performance, and save money at the same time, by failing to seek vendor competition in the procurement process, according to a recent survey.

Federal IT professionals revealed that their agencies could save as much as $15.8 billion per year — about 20 percent of annual IT spending — by being more aggressive in utilizing multiple vendors in a more competitive environment for infrastructure projects.

The survey of 208 federal specialists was conducted in January by MeriTalk, an online community of public and private sector IT professionals.

Reporting on the survey in early March, MeriTalk said that 95 percent of respondents believe there are benefits to using more than one vendor in an area of their infrastructure, and 44 percent believe that adding a vendor drives down acquisition costs. However, five percent of agencies reported that their entire IT infrastructure uses just one vendor, and another 23 percent use just two or three.

Keep reading this article at: http://www.ecommercetimes.com/story/77636.html.

U.S. acquisition mistakes put Afghan air force’s new fleet at risk

It took an extra year and left the Air Force’s acquisition team with egg on its face, but Sierra Nevada Corp. still ended up with the $427 million contract to provide 20 light support planes to the Afghan air force.

The Air Force had to cancel the initial contract in 2011 awarded to Sierra Nevada Corp. after Beechcraft Corp. protested the award. Following the protest, the Air Force discovered mistakes made in the paper work throughout the acquisition process forcing the Pentagon to re-open the competition.

Air Force officials still chose the Super Tucano offered by Sierra Nevada Corp. and Brazil’s Embraer for a contract that could be worth up to $900 million over the life of the contract.

Keep reading this article at: http://www.dodbuzz.com/2013/02/28/u-s-acquisition-mistakes-put-afghan-air-forces-new-fleet-at-risk/

DHS reduces noncompetitive contracts, improves oversight

Noncompetitive contracts at the Homeland Security Department totaled about  $389 million in fiscal 2012, down from $3.5 billion in fiscal 2008, the DHS office of inspector general says.

The department’s spending on noncompetitive contracts has dropped each year  since fiscal 2008, and in the meantime, it has improved its internal oversight  of acquisitions, the OIG says in a report dated Feb. 1, 2013 and recently posted online.

For example, out of the 40 noncompetitive awards from 2012 that auditors  examined, all those that required written justification had it complete and on  file. Problems with justification have fallen since 2008, when 27 percent of  justifications in the OIG’s sample were deficient.

Keep reading this article at: http://www.fiercegovernment.com/story/dhs-reduces-noncompetitive-contracts-improves-oversight/2013-02-20 

Download a copy of the DHA IG’s report referred to in this article at: http://www.oig.dhs.gov/assets/Mgmt/2013/OIG_13-36_Feb13.pdf 

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OFPP chief: Government shops as if it were ‘130 mid-sized businesses’

The government lacks solid information on past prices paid under goods and services contracts, the nation’s top procurement officer said Thursday. This is just one of the reasons he gave for the Obama administration’s push for greater use of strategic sourcing.

“I know everyone buys podiums and tables and microphones, but currently you can’t just look at who bought it how much was paid because you get a general description bucket of goods, and not level-three price data,” said Joe Jordan, administrator of the Office of Federal Procurement Policy, at a panel put on by the Professional Services Council, a contractors trade group.

“We don’t need to touch the wonderful 2,200-page [Federal Acquisition Regulation] for agencies to share what’s been paid,” Jordan said. “Our government is the largest purchaser in the world, but it buys as if it were 130 mid-sized businesses. We’ve got to leverage our buying power.”

Keep reading this article at: http://www.govexec.com/contracting/2013/02/procurement-chief-government-shops-if-it-were-130-mid-sized-businesses/61037/?oref=dropdown.

GSA launches governmentwide acquisitions dashboard

The General Services Administration launched a new online dashboard Tuesday (Nov. 27, 2012)  that lists agencies’ information technology spending using governmentwide acquisition contracts.

The dashboard’s goal is to help agencies make “data driven” decisions about where to invest IT funding and to give federal IT vendors insight into new business opportunities, the agency said in a press release.

Governmentwide acquisition contracts, or GWACs, are master contracts for popular IT products and services that agencies can simply purchase for a set price rather than negotiate their own agreements with the vendor or put requirement out for competitive bids.

Keep reading this article at: http://www.nextgov.com/emerging-tech/2012/11/gsa-launches-governmentwide-acquisitions-dashboard/59758/?oref=govexec_today_nl.

Body overseeing Washington airports called ‘poster child for corruption’

The regional body overseeing Washington area airport projects such as the subway extension to Dulles International Airport is a “poster child for corruption” that needs major management reforms, a House committee chairman said.

“This is a sad chapter for metropolitan Washington and advocates for good D.C. transportation,” Rep. John Mica, R-Fla., said at a Friday hearing of the Transportation and Infrastructure Committee that reviewed a Nov. 1 Transportation Department inspector general report. “The IG found problems with hiring practices, a lack of competition for contracts and ethical violations.”

Mica mentioned contractors providing Metropolitan Washington Airports Authority employees with trips to golf tournaments, tickets to sporting events and concerts, and travel and accommodations amounting to nearly $5,000, as well as “preferential treatment to friends and relatives of board members.”

The board, which employs 1,400 and consists of political appointees made by the Maryland and Virginia governors and the District of Columbia mayor, has been in the news in recent months because of debates over the cost and scope of the Metro extension to Dulles and because of questionable salaries and travel expenses of some employees and board members.

Inspector General Calvin L. Scovel III testified that “MWAA’s policies and practices have not provided the controls needed to ensure accountability, transparency and sound governance.” A lack of internal controls has created a culture that allows questionable contracting practices . . . including initiating work before contract award, awarding sole source and limited competition contracts without proper justification, and providing nonpublic information that gives potential contractors an unfair advantage in competition.”

Keep reading this article at: http://www.govexec.com/oversight/2012/11/body-overseeing-washington-airports-called-poster-child-corruption/59633/?oref=govexec_today_nl.

Contract competition increasing at DHS, think tank says

Contract competition at the Homeland Security Department has increased significantly, according to a new report that still warns inadequate spending on research and development may hinder DHS down the road.

The paper published Tuesday by the Center for Strategic and International Studies found that the majority of contracts that DHS has issued since 2006 were subject to some form of competition during the bidding process. The scholars studied this by looking at data from the Federal Procurement Data System and analyzing the number of offers the department received from bidders, the contract’s funding mechanism and the type of contract vehicle used.

“Both total dollars and the share of DHS contracts awarded under competition with multiple offers increased significantly in 2010 and continued to increase in 2011, rising to a 51 percent share of overall DHS contract obligations,” the report said.

Keep reading this article at: http://www.govexec.com/contracting/2012/11/contract-competition-increasing-dhs-think-tank-says/59493/.

Analyst: It’s a myth that market competition drives down weapons cost

Critics of Pentagon waste point to the uncompetitive defense industry — dominated by a handful of conglomerates — as the reason why the U.S. military overpays for weapons. If only there were a truly competitive, free, market, prices would come down, experts have argued.

Reality often trumps that theory, however. Some of the most hair-raising Pentagon acquisition programs — Future Combat Systems, Expeditionary Fighting Vehicle, Joint Strike Fighter come to mind — were competitively awarded after lengthy evaluations and technology trials. Yet, these programs today are held up as poster children for Pentagon acquisitions gone awry.

A respected defense budget analyst now offers a numbers-based hypothesis for why competition in military acquisitions is overhyped as a cure-all for the chronic cost overruns in Pentagon weapon systems.

“While competition has an intuitive appeal as a way to drive down costs in defense acquisitions, this is not always the case,” says Todd Harrison, a senior analyst at the Center for Strategic and Budgetary Assessments, a nonpartisan Washington, D.C., think tank.

“Competition can, under certain circumstances, drive up acquisition costs by incentivizing contractors to bid higher,” Harrison contends in a paper titled, “The Limits of Competition in Defense Acquisition,” published last month by the Defense Acquisition University.

Keep reading this article at http://www.nationaldefensemagazine.org/blog/Lists/Posts/Post.aspx?ID=935.