Senate defense bill lays out acquisition reforms

The Senate’s version of the $612 billion 2016 defense authorization bill that cleared committee on Thursday treats shortfalls in the acquisition system as a national security threat while pressuring the Pentagon to accelerate planned reductions in headquarters personnel.

US Congress“This is a reform bill,” said Senate Armed Services Committee Chairman John McCain, R-Ariz. “It tackles acquisition reform, military retirement reform, personnel reform, headquarters and management reform. This legislation delivers sweeping defense reforms that rise to the challenges of a more dangerous world. We identified $10 billion of excess and unnecessary spending from the defense budget, and we are reinvesting it in military capabilities for our warfighters and reforms that can yield long-term savings for the Department of Defense.”

The headquarters staff cuts and purchasing reforms differ slightly from the House version of the bill, which passed that chamber on Friday, May 15, 2015.

“An acquisition system that takes too long and costs too much is leading to the erosion of America’s defense technological advantage, which the United States will lose altogether if the department continues with business as usual. In short, our broken defense acquisition system is a clear and present danger to the national security of the United States,” a committee summary said.

Keep reading this article at: http://www.govexec.com/defense/2015/05/senate-defense-bill-lays-out-acquisition-reforms-hq-personnel-cuts/113113

IG finds both agency implementation and SBA oversight of WOSB program to be flawed

Federal agencies’ contracting officers are awarding set-aside contracts without meeting the set-aside requirements associated with the Small Business Administration’s Woman-Owned Small Business (WOSB) program.   This finding, among others, appears in a report issued on May 14, 2015 by the SBA’s Office of Inspector General (OIG).

SBA - IGThe OIG report states that as much as $7.1 million worth of contracts received by WOSBs in fiscal year (FY) 2014 may be improper.  For example, 10 of 34 WOSB set-aside awards were for ineligible work, and 9 of these 34 were awarded to firms that did not provide required documentation to prove they were eligible WOSBs.

In addition to the 9 WOSB awards that did not have any ownership or control documentation in the SBA’s WOSB Repository, the OIG identified 13 of 25 firms in their audit sample that uploaded only some — but not all — of the required documentation to the Repository, thus also bringing their program eligibility into question.

Additionally, 12 businesses did not provide sufficient documentation to prove that a woman or women controlled the day-to-day operations of their firms.  These firms, which received $8 million in contracts, also may be ineligible for their WOSB set-aside awards.

The OIG report is critical not only of agencies’ implementation of the federal WOSB program but also of SBA’s lax oversight.  Accordingly, OIG made five recommendations to the SBA’s Associate Administrator for Government Contracting and Business Development calling for improvements in how SBA manages and administers the WOSB program.

It should be noted that even before the OIG’s report, the SBA’s WOSB program already was slated to undergo some major programmatic changes based on the National Defense Authorization Act (NDAA) for both FY 2013 and 2015.  The NDAAs stipulated considerable increases SBA’s oversight responsibilities.  Specifically, the FY 2015 Act will: 1) grant contracting officers the authority to award sole-source awards to WOSB firms, 2) remove firms’ ability to self-certify, and 3) require firms to be certified.  The SBA is still determining how it will implement these mandated changes.

The OIG’s full report can be downloaded here: Improvements_Needed_in_SBAs_Management_of_WOSB_Program-OIG_Report_15-10

Simplified acquisition threshold to $500,000? House proposes huge increase

The simplified acquisition threshold would increase to $500,000 under the version of the 2016 National Defense Authorization Act currently before the U.S. House of Representatives.

SAT - May 2015If the House proposal ultimately becomes law, the simplified acquisition threshold would more than triple from its current $150,00 level.  Such a dramatic increase in the simplified acquisition threshold could affect nearly all federal contractors – especially small businesses.

Under federal statute, the simplified acquisition threshold (SAT) is set at $100,000.  However, the law also requires an adjustment for inflation every five years.  Because of the inflation review, the FAR was adjusted in 2010 to raise the threshold to $150,000, where it remains today.

Section 854 of the proposed 2016 NDAA would strike the $100,000 statutory threshold and replace it with a $500,000 threshold.  The revised threshold would still be subject to inflation-based adjustments.  Additionally, the proposed 2016 NDAA would increase the micro-purchase threshold from $3,000 to $5,000.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/simplified-acquisition-threshold-to-500000-house-proposes-huge-increase/

Push is on for analysis of approval process required of 8(a) Native American sole-source contracts

Alaskan Congressman Don Young is enlisting a bipartisan group in the House of Representatives to urge Secretary of Defense Ash Carter to swiftly and diligently complete a Department of Defense (DOD) study examining the negative impacts of Section 811 of the Fiscal Year 2010 National Defense Authorization Act (NDAA) on Native community owned contractors.

“The 8(a) program has been extremely successful in creating an efficient and cost effective contracting option for the government while supporting economic opportunity for some of the most disadvantaged and underemployed populations in the nation,” said Congressman Young. “Since Senator Stevens left the Senate, Native contractors have been under constant attack. Section 811 was snuck into the 2010 NDAA negotiations by the Senate, and ever since then I have repeatedly heard about the confusion, difficulty and damage this Act has caused to our Native contractors.”

Section 811 requires that any 8(a) Native American sole-source contract, in excess of $20 million, go through an overly burdensome approval process. While the measure was sold as a “good governance” provision and did not prohibit or discourage the awarding of such contracts, this heightened scrutiny, not required for any other contractors, has had a chilling effect for contracts.

Keep reading this article at: http://alaska-native-news.com/young-pushes-for-analysis-on-negative-impacts-of-section-811-on-native-owned-contractors-16415

Pentagon acquisition bosses ‘ho-hum’ on multiple reviews for passing milestones

Defense Department major weapons buyers could streamline the acquisition process by eliminating some reviews in the years-long phase for passing each procurement milestone, the Government Accountability Office (GAO) found.

“The process in some instances can include up to 56 organizations at eight levels and accounts for about half of the time needed to complete information requirements,” the watchdog said in a report released Tuesday.

Interviews with 24 program managers and participating organizations on major procurements such as aircraft showed that most “did not think these reviews added significant value to the documentation,” GAO said. “The program managers considered the value added to 10 percent of the documentation to be high,” GAO said in report required by the 2014 National Defense Authorization Act. “However, for the remaining 90 percent of the documents, the officials believed the reviews did not add high value.”Sixty-one percent said they provided moderate value while 29 percent said they provided less than moderate.

Keep reading this article at: http://www.govexec.com/contracting/2015/02/pentagon-acquisition-bosses-ho-hum-multiple-reviews-passing-milestones/106221