Most top contractors increased business with federal government in 2012

May 15, 2013 by

A majority of the top 200 government contractors made more money on federal awards last year than in 2011, despite major budgetary cutbacks, according to a report released Wednesday.

Overall, the federal government spent $516.3 billion on contracts in fiscal 2012, down 3.1 percent from fiscal 2011’s total of $532.6 billion, the largest year-over-year decline in inflation-adjusted dollars since 1997, the analysis said. Sixty-four percent of that total went to the top 200 companies doing business with the government.

Bloomberg Government, which published the report, analyzed data from 24 agencies and departments, and in 20 categories of federal purchases. Bloomberg found that many contractors were able to maintain or increase business by focusing on sectors that were not subject to “budget pressures,” such as space vehicles, drones, health information technology and cybersecurity.

Keep reading this article at: http://www.govexec.com/contracting/2013/05/most-top-contractors-increased-business-federal-government-2012/63049/?oref=skybox 

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Defense companies also worried about nondefense budget cuts

December 17, 2012 by

The defense industry’s loud campaign against sequestration has led many observers to believe those companies would be safe if steep cuts to the military budget under sequestration are avoided.

That’s a misperception. The defense industrial base is also concerned about possible cuts to the nondefense budget if the $109 billion in automatic cuts takes effect next year. Even if sequestration is averted, they worry about a fiscal-cliff deal that scales back overall discretionary spending in both defense and nondefense accounts. Now, with just a few days left for Congress and the White House to reach a deficit deal to avert the looming cuts, the defense industry is starting to speak up for the other side of the budget that could get the ax.

“It’s not just the defense industry or private-sector workers who are on the chopping block here, but nondefense programs and workers as well,” Aerospace Industries Association CEO Marion Blakey said in a speech to the National Aeronautic Association on Tuesday, Dec. 11, 2012.

Keep reading this article at: http://www.govexec.com/defense/2012/12/defense-companies-also-worried-about-nondefense-budget-cuts/60122/?oref=national_defense_nl.

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‘Byzantine warren of fiefdoms’ makes contracting fraud hard to stop

September 14, 2012 by

On a hot summer day in 2011, two men sat in a car outside of L’Enfant Plaza in Washington, D.C. Away from any offices, they arranged a secret deal — a $1 million bribe from a contractor in exchange for a $1 billion federal contract.

What the federal contracting officer accepting the bribe didn’t know, however, that the car was wired and the other man was an informant.

David Williams, the U.S. Postal Service’s inspector general, said in a Sept. 6 speech that this example– for which he gave no additional detail — and other schemes prove that federal contracting fraud is lucrative — and that the government needs reinforcements to stop it.

“Bribery, extortion, kickbacks, false claims, foreign corrupt practices, and that’s just the freshman course in this business,” he said.

Keep reading this article at: http://fcw.com/articles/2012/09/06/breeding-ground-contract-fraud-crime.aspx 

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New website links government contractors with former feds

August 9, 2012 by

A new website linking companies with former federal workers is set to launch in September.

Exfederal.com will match companies looking to quickly hire workers for contracts with former feds in search of a job. The site was founded by Ginger Groeber, a former human resources official in the Pentagon, and by Lockheed Martin Corp. The site is currently undergoing beta testing, but already lists many open positions.

Keep reading this article at: http://www.govexec.com/contracting/2012/07/new-website-links-government-contractors-former-feds/57103/?oref=govexec_today_nl.

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Vendors start to see contracts slowing down with sequestration looming

June 15, 2012 by

With every passing moment, agencies inch toward automatic spending cuts totaling more than $1 trillion. But a leader for one of the largest federal contractors is urging the government to act as if sequestration will not happen.

Uncertainty about how much money agencies will end up with in 2013 has prompted them to delay contract awards in the current year, said SAIC executive Debbie James in an interview with Federal News Radio as part of the week long multimedia series, Inside the World’s Biggest Buyer.

Keep reading this article at: http://www.federalnewsradio.com/146/2904861/Vendors-start-to-see-contracts-slowing-down-with-sequestration-looming-

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Obama procurement chief nominee clears Senate panel

May 18, 2012 by

The Senate Homeland Security and Governmental Affairs Committee on Wednesday approved President Obama’s choice to be administrator of the White House Office of Federal Procurement Policy.

Committee members present for the vote unanimously approved Joseph Jordan, a current Office of Management and Budget adviser. Sen. Ron Johnson, R-Wis., who weighed in by proxy, registered the sole vote against the nomination.

Keep reading this article at http://www.govexec.com//contracting/2012/05/obama-procurement-chief-nominee-clears-senate-panel/55770/?oref=govexec_today_nl.

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Congress could turn heat up on small-biz goals

February 1, 2012 by

Under a new bill, a department that misses a set goal to contract with small businesses could lose 10 percent of its budget as a penalty.

Rep. Bill Owens (D-N.Y.) introduced the Small Business Growth and Federal Accountability Act (H.R. 3779) Jan. 18, saying the government’s annual 23-percent small-business contracting goal is regularly ignored by agencies.

He said his bill would “ensure that Washington lives up to its promise to foster an environment of success for small businesses.”

Owens, a member of the Small Business Committee, said federal agencies typically fail to meet their small-business contracting goals and they currently face no penalties for the shortfalls.

Under his bill, if an agency misses the set small-business contracting goal, their budget would decrease by 10 percent in the following fiscal year, with that percentage of funds going to pay down national debt.

“It is critical that federal agencies be held accountable,” Owens said.

The bill also would offer agencies more authority to give “preference” to small companies when awarding contracts. The term “preference” is not defined in the bill.

The bill has been sent to the Small Business Committee for consideration.

It is true that the government struggles to meet its annual 23-percent contracting goal. In the most recent scorecard from the Small Business Administration, the government reached 22.7 percent in fiscal 2010.

That year, agencies awarded a total of nearly $100 billion in contracts to small businesses. However, it was an increase in prime contract dollars going to small businesses for the second year following four years of decline.

SBA gave the government a B on the scorecard for its efforts in contracting with specific types of small businesses, such as those owned by a service-disabled veteran or located in an economically depressed area.

Owens’ bill could have several repercussions though.

In a post on the Government Contracts Legal Forum blog, Tiffany Wynn, an associate at the Crowell and Moring law firm, said agencies may decide to reduce their contracting goals to avoid the 10-percent penalty.

As a result of the bill, officials would have to weigh the penalties for missing the small-business goal against awarding a contract to a large company if the agency could save money.

Wynn also questioned whether this legislation would lead to penalties on companies that don’t meet their own annual small business subcontracting goals.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Jan. 25, 2012 at http://washingtontechnology.com/articles/2012/01/25/small-business-goal-reduced-budget-penalty.aspx?s=wtdaily_260112.

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OMB urges agencies to pay small business contracts faster

September 28, 2011 by

Federal agencies must accelerate their payments to small business contractors, according to an Office of Management and Budget memorandum released Wednesday.

The new guideline cuts the recommended payment time in half. Previously, under the 1982 Prompt Payment Act, agencies had to make payments within 30 days from when an invoice was received. Now, agencies should make payments within 15 days, or as soon as practicable.

With the government spending nearly $100 billion a year in small business contracts, OMB predicts this will boost cash-flow for small businesses and help create economic growth.

“This will benefit tens of thousands of small businesses by getting money into their hands faster,” Jeff Zients, deputy director for management and chief performance officer, said in a blog post for OMB. The late payment interest penalty will not change, however. A provision in the Prompt Payment Act, the penalty is triggered when an agency does not pay within the 30-day mark.

Initial reaction from the National Small Business Association is positive.

“We’re supportive of it conceptually. Expediting the payment time is a good thing,” said Molly Brogan, vice president of public affairs for the group.

Agencies are expected to notify OMB by Nov. 1 when they can begin making accelerated payments.

– by Caitlin Fairchild - Government Executive – September 15, 2011 at http://www.govexec.com/story_page.cfm?articleid=48808&dcn=e_tma.

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Contractors ordered to post DOD fraud hotline info

September 27, 2011 by

Make room on the bulletin board near contractor coffee makers and break rooms.

The Defense Department now requires its defense contractors to post the DOD inspector general’s fraud hotline posters in common work areas. The rule took affect Sept. 16, according to a notice in the Federal Register the same day.

The DOD IG didn’t think the old rules went far enough because the Federal Acquisition Regulation allowed a contractor to not post any other agency’s hotline numbers other than those of the Homeland Security Department if the company had its own business ethics program with a means of reporting fraud or waste.

However, the DOD IG believes the FAR might be limiting the use of its own hotline. Without a poster, an employee wouldn’t know the IG’s phone number.

“According to the DOD IG, some contractors’ posters may not be as effective as the DOD poster in advertising the hotline number, which is integral to the fraud program,” the notice explained. The DOD IG is also revising its poster to tell employees of federal whistleblower protections.

The rule amends the Defense Federal Acquisition Regulation Supplement, or DFARS.

In response to the proposal in May, some experts were concerned that the new hotline posters could replace the contractor as the first line of defense against waste and fraud. It would also get the IG involved in what often turns out to be human resource issues or concerns about day-to-day activities that may need immediate attention.

But the IG said its staff knows the difference between an urgent matter about a defense contract and a routine personnel issue.

The rule applies to contracts and subcontracts that exceed $5 million. It does not apply to purchases of commercial items or for work that will be performed entirely outside the United States if the contract exceeds $5 million.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement at Washington Technology. This article appeared on Sept. 19, 2011 at http://washingtontechnology.com/articles/2011/09/19/dod-ig-required-fraud-hotline-posters.aspx?s=wtdaily_200911.

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Obama wants small businesses paid in 15 days

September 20, 2011 by

The government will be paying some small businesses in half the time under a new proposal by President Barack Obama.

Obama announced his new “QuickPay” plan on Sept. 14. It requires agencies to cut checks in 15 days, instead of 30 days, after they receive a valid invoice. The 15-day payments apply only to prime contractors.

“Today I’m ordering all federal agencies to make sure those small-business owners get paid a lot faster than they do now. In many cases, it will be twice as fast. So that puts more money in their pockets quicker, which means they can hire folks quicker,” Obama said Sept. 14 in Raleigh, N.C.

The plan goes into effect immediately.

The administration decided getting cash to companies is necessary in these economic times and moved the payment deadline under the Prompt Payments Act, Jacob Lew, director of the Office of Management and Budget, wrote in a memo released Sept. 14.

“When small contractors get their money in 15 days instead of 30, it results in a permanent infusion of cash flow into their businesses,” Small Business Administration Administrator Karen Mills said in a statement. “Their financial footing gets stronger — permanently.”

Lew is also telling agency officials that by November, they must tell OMB officials when they began paying small businesses in 15 days and the name of the federal official responsible for it.

The government awards nearly $100 billion annually in federal contracts to small firms, and sending money out quickly would help those companies in tough times, officials said.

Rep. Sam Graves (R-Mo.), chairman of the House Small Business Committee, applauded the president’s new plan.

“Small businesses bring more competition and reduced prices to federal contracting, so we should make sure the federal government pays them in a timely manner, especially considering most of them are operating on tight profit margins and trying to do more with less,” he said.

On Sept. 8, Obama said the government could help struggling small-business contractors by sending payments more quickly.

Joe Jordan, associate administrator of government contracting and business development at the SBA, said the 15-day mark benefits small businesses the most while not forcing agencies to change or modify their automated systems or processes.

“It really has a great confidence component,” he said.

“By taking actions that will enable these payments to be made as promptly as possible, we will improve cash flow for small businesses and provide them with a more predictable stream of resources,” Jeffrey Zients, chief performance officer and deputy director for management at OMB, wrote in a new post on OMB’s blog.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Washington Technology. Published Sept. 14, 2010 at http://washingtontechnology.com/articles/2011/09/14/small-business-15-days-paid.aspx?s=wtdaily_150911

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