Recommendations for DoD acquisition reform focus on 7 areas

The Defense Department added its voice to a growing list of associations and lawmakers with ideas on how to improve the military’s acquisition process.

DoD’s ideas center less on what Congress can do and more on what it shouldn’t do.

Frank Kendall, the undersecretary of Defense for Acquisition, Technology and Logistics, sent a letter to Sens. John McCain (R-Ariz.) and Carl Levin (D-Mich.) back in June detailing seven areas where he thinks DoD needs help to improve acquisition outcomes.

For the first time publicly today at the AFCEA Acquisition Modernization conference in Washington, Kendall highlighted his seven recommendations.

Kendall said the biggest thing Congress could do is end the threat of sequestration in 2016 and beyond.

“2013 was a nightmare year. We actually implemented sequestration well into the year. We bought ourselves a little time with the deal that got us through 2014 and presumably through 2015. It’s coming right back in 2016,” he said. “We are working on the budget right now. The services are finalizing their [budget plans], and we will go through an exercise this fall where we will have to look at what the President will submit and something that is compliant with sequestration to see what the damage is. The damage is huge.”

Keep reading this article at: http://www.federalnewsradio.com/394/3676550/Kendall-shapes-DoD-acquisition-reforms-around-7-areas-

‘We’ve got to stop throwing Hail Marys’

The future of federal IT contracting could look a lot like the environment at Google and other high-tech companies, where cutting costs and boosting efficiencies are as routine as breathing. But, say former and current procurement officials, winning the future will still involve knowing the nitty-gritty of what an agency is trying to accomplish with its IT contracts.

Being able to act quickly and effectively in the face of technology that has outpaced government’s ability to buy it effectively is a constant challenge, according to panel discussions at the National Contract Managers Association’s 2014 conference in Washington on July 28. In the face of similar challenges, private industry has adopted shorter development cycles coupled with more agile techniques.

If we want real innovation, we need to stop looking for ways to circumvent the federal acquisition system and work together to improve it, writes Stan Soloway.

Federal agencies are just beginning to do the same.

“We’ve got to stop throwing ‘Hail Marys” at large federal IT projects, Joe Jordan, former administrator of the Office of Federal Procurement Policy and now president of public sector at FedBid, said during a panel on technology’s impact on acquisition. “It’s got to be broken up into five- to 10-yard passes.”

Keep reading this article at: http://fcw.com/Articles/2014/07/28/No-more-Hail-Marys.aspx?Page=1&p=1

Contractors group would restructure White House procurement shop

Citing a “human capital crisis” in a federal workforce beset by retirements and inexperience, a major contractors group on Monday proposed acquisition reforms that would speed up the procurement process, enhance industry-agency collaboration and reorganize the White House Office of Federal Procurement Policy to improve workforce training.

The Professional Services Council’s report joins an array of acquisition reform efforts under way in the executive branch and on Capitol Hill in addressing the need to create contracting officers with a more sophisticated grasp of industry trends in services contracting, particularly in information technology.

“We need to fundamentally rethink the workforce, to create a unified vision across government,” said Stan Soloway, president and CEO of the council, which represents 375 member companies. “It will affect everything from how we prosecute wars to how we operate our business systems. The time for incremental or tactical change has long passed.”

Keep reading this article at: http://www.govexec.com/contracting/2014/07/contractors-group-would-restructure-white-house-procurement-shop/89870/

Read the full report by and recommendations of the Professional Services Council at: The PSC Acquisition and Technology Policy Agenda – 07.28.2014

Management of HealthCare.gov website now open for bid proposals

The White House has begun its search for the next stewards of HealthCare.gov.

contract solicitation posted online Wednesday enumerates the qualifications and requirements of the next Obamacare website contractor, charged with keeping the online federal health insurance exchange portal up and running.

The 60-page job posting says the next caretaker of the Obamacare site will need to be able to work “under aggressive time constraints” to work with the Federally Facilitated Marketplace in testing and upgrading a variety of hardware, software, and security features. It also states that the contractor will need to be able to perform tests that can demonstrate that the site can function when a large number of users are online.

Keep reading this article at: http://www.nextgov.com/cio-briefing/2014/07/obama-administration-looking-next-obamacare-website-contractor/88927

The future of contracting

As government agencies now rely primarily on contractors to meet their mission objectives, they must embrace the oversight and management of contractors as a core competency, not as an administrative function buried deep within the management and/or administration office. Mission delivery through external, private-sector, and profit-motivated businesses requires all federal executives and staff to accept their roles in ensuring that contractors properly support the agency’s “customers” as well as its own private business objectives. Immense advances in technology in recent years and the rising prominence of new corporations in our information age replacing those of the industrial age raises the question: How can government acquisition better leverage new methods of communication and technology; and if so, how can it be more effective?

While technology continuously improves our lives in many ways, such as providing new and improved tools to make data more available, functions to perform faster, and communication to be more accurate and responsive, the professional competencies required and goals of government contracting cannot and should not change. These are concepts of fairness, competition, the role of small business, fair and reasonable pricing, ethical standards of conduct, best value, intellectual property, acquisition planning, compliance, etc. There are also business competencies of leadership, economics, accounting, marketing, etc.  The terminology of competencies may change, but the competencies themselves will remain.

Keep reading this article at: http://www.federaltimes.com/article/20140624/BLG06/306240011/The-future-contracting

Procurement troubles still dog Defense Department

Congress has held hearings over the past 30 years seeking ways to fix the Defense Department’s poor procurement system.

A June 24th hearing offered interesting ideas.

No headlines afterward about stopping F-35 costs from skyrocketing, keeping new production of nuclear aircraft carriers on schedule or halting the failure of billion-dollar computer programs — in fact, there was hardly any press coverage at all.

Two worthwhile ideas that came from the four experienced procurement specialists who appeared before the House Armed Services Committee provided no silver bullets, but they made sense.

  1. Give the main contracting officer for major weapons projects absolute cradle-to-grave authority and responsibility and accountability.
  2. Interservice rivalry and even intraservice competition have far from ended, and they harm the procurement system.

 

4 lessons for government leaders on what motivates contractors

Competition was the main theme of the Defense Department’s second annual report on acquisition performance, released earlier this month. Declining budgets may be pushing defense contractors to look for work outside the government, but the Pentagon’s emphasis remains on promoting competition, according to Frank Kendall, the undersecretary of defense for acquisition, technology and logistics.

The report analyzed contractors’ cost and schedule performance over more than a decade to see what motivated them to produce better results. Here are some takeaways:

  1. The carrot-and-stick approach works.
  2. Fixed-price isn’t always the best fix.
  3. More competition does mean better performance.
  4. Leadership matters, but it’s not clear how much.

Keep reading this article at: http://www.washingtonpost.com/business/capitalbusiness/what-motivates-defense-contractors-four-lessons-for-government-leaders/2014/06/27/a623fb06-f577-11e3-a3a5-42be35962a52_story.html

Will FITARA help agencies embrace the cloud?

Even as the Federal Information Technology Acquisition Reform Act makes its way to the Senate floor, experts are split on whether the bill goes far enough and if legislation is needed at all to fix government’s IT acquisition problems.

Angela Styles, chair of Crowell & Moring’s government contracts group, said a bulky procurement process for industry often drives the private sector away from even giving the government options in what it purchases.

“These companies that come to us and ask ‘What does it mean to be a federal contractor?’ come with the expectation based on FASA (the Federal Acquisition Streamlining Act) and FARA (the Federal Acquisition Reform Act) from the ’90s that the government has an idea how to contract in a commercial fashion. Maybe the changes in ’94 and ’95 were more commercial, but they are not now,” Styles said, speaking Tuesday during a panel session at Amazon Web Services’ annual symposium for federal IT reform.

Styles said the provisions set up in part 12 of the Federal Acquisition Regulation (FAR) contribute to an “extraordinary gulf” between how the government and private sector do business.

Keep reading this article at: http://fedscoop.com/fitara-cloud/

Pentagon ranks top suppliers to spark competition among contractors

The Defense Department’s acquisition chief on Friday (June 13, 2014) released a ranking of the top 30 supplier units within the contracting industry as part of a continuing effort to improve the government’s largest procurement operations by curbing costs and professionalizing the workforce.

Frank Kendall III, undersecretary of Defense for acquisition, technology and logistics, introduced the first rankings from a Navy Department pilot project called the Superior Supplier Incentive Program. Designed to help industry “recognize its better performers” based on past performance and evaluations by program managers, such a list is planned for all the services beginning to build incentives, Kendall told reporters. “The industry people who will respond the most will be the ones at the bottom,” he said.

Sean Stackley, assistant Navy secretary for research, development and acquisition industry, said “industry best practices include recognizing the best suppliers, which gives them an incentive to sustain superior performance.” The selections were made through a process designed to be “fair and objective and understood by the public and Congress, as well as easy to manage,” Stackley said.

Keep reading this article at: http://www.govexec.com/contracting/2014/06/pentagon-ranks-top-suppliers-spark-competition-among-contractors/86473/

For the annual report on the performance of the Defense Acquisition System, click here.  

Opening up competition in federal IT

The Public Spend Forum, a group focusing on public-sector procurement, analyzed government IT spending  and found that a  “check the box culture” and a broken requirements and procurement process inhibits competition and limits innovation.

Its recent report, Billions in the Balance: Removing Barriers to Competition & Driving Innovation in the Public-Sector IT Market makes several recommendations for IT managers:

  • Establish clear lines of authority and accountability.
  • Develop a simple needs and outcomes statement instead of voluminous RFPs.
  • Engage the market early.
  • Develop a cost/outcome (ROI)-focused IT strategy.
    • Focus on minimizing cost/outcome as the ROI of a government program
    • Implement flexible IT architectures as recommended in the ACT-IAC 7S for Success Framework.
    • Emphasize prototyping and approaches for minimum viable product rollouts.
    • Avoid monolithic acquisition approaches and instead leverage existing procurement vehicles and allow use of alternative vehicles.
  • Encourage smart risk taking.
  • Reduce burdensome requirements and speed up the procurement process.

Keep reading this article at: http://gcn.com/blogs/pulse/2014/06/competition-in-it-procurement-report.aspx