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February 26, 2021 By cs

Future uncertain for industrial base as pandemic spreads

While the United States continues to deal with challenges posed by the COVID-19 pandemic, it is still too early to know how the health of the defense industry will fare in the long run, according to analysts.

“The magnitude of the virus … it’s really unknown, a lot of this just has to do with when the virus is going to go away, … how quickly [a vaccine] can be deployed,” Nick Jones, the National Defense Industrial Association’s director of regulatory policy, said in an interview.  “COVID-19 is going to continue to be an issue until the virus is at very low levels, which may be who knows how long,” he added.

Jones’ comments echo sentiments expressed by Ellen Lord, the Pentagon’s undersecretary of defense for acquisition and sustainment.  During a virtual Defense News conference in September, Lord said many of the effects of COVID-19 may be yet to come.

“All the reports that have come out in large part don’t reflect the hits that were taken by business,” she said. “There have been mixed reports in terms of revenue and profitability. I would contend that most of the effects of COVID haven’t yet been seen, because most companies gave their employees time off — they stretched out production, paid a lot of people for working 100 percent when, perhaps, they were only getting 50 percent of the hours in, and so forth.”

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2021/2/3/future-uncertain-for-industrial-base-as-pandemic-spreads

The National Defense Industrial Association’s second annual Vital Signs report on the health of the U.S. defense industrial base was released on Feb. 2, 2021.  To download a copy, please click HERE.

Filed Under: Government Contracting News Tagged With: commercial products, COVID, COVID-19, DoD, domestic products, industrial base, NDIA, pandemic, productivity

February 24, 2021 By cs

GSA’s central procurement hub — SAM — will keep the ‘beta’ a little longer

Users will get a preview in April of the new SAM.gov — a central, one-stop website for all of the General Services Administration’s acquisition tools — but will have to wait a bit longer to access the full capabilities of the current SAM.gov.

Since 2017, GSA’s Integrated Award Environment has been operating two websites with the SAM moniker: the original SAM.gov, where companies and organizations register before vying for federal contracts and grants, and beta.SAM.gov, soon to be the central procurement website. Beta.SAM will ultimately consolidate 10 acquisition tools, and already includes Contract Opportunities — formerly Federal Business Opportunities, better known as FedBizOpps or FBO — and the reporting functions of the Federal Procurement Data System, or FPDS, which now reside on the Data Bank page.

The next major transition will be moving functionality from the current SAM.gov to beta.SAM, shuttering the former and dropping the “beta” from the latter.  GSA officials had planned to finalize the transition before the end of April but have since revised that timeline.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2021/02/gsas-central-procurement-hub-will-keep-beta-little-longer/171951/

Filed Under: Government Contracting News Tagged With: beta.sam, beta.SAM.gov, FBO, FedBizOpps, FPDS, GSA, IAE, Integrated Award Environment, SAM, SAM.gov, System for Award Management

February 23, 2021 By cs

Size recertification prior to contract award – When is it required?

The U.S. Court of Federal Claims (COFC) decision in HWI Gear, Inc. v. United States highlights the importance of reviewing a solicitation to determine if the text of Federal Acquisition Regulation (FAR) 52.219-28 is included in it, as well as the risk of engaging in corporate transactions while a proposal to a procuring agency is pending.

In this case, the COFC held that an offeror was required to recertify its size status during a procurement, and the agency’s failure to enforce this requirement invalidated the award.

In HWI Gear, Mechanix Wear, Inc. (Mechanix) and HWI Gear, Inc. (HWI) submitted proposals in response to a solicitation set aside for small businesses. After proposal submission but before award, Mechanix informed the procuring agency that it had changed its corporate structure from a corporation to a limited liability company and changed its corporate name, but that all other terms and conditions in its proposal remained unchanged. Mechanix, however, did not inform the agency that its change in corporate structure was the result of a merger with a large business and that Mechanix no longer qualified as a small business under the size standard established for the procurement. The agency ultimately selected Mechanix as the awardee, and HWI filed a bid protest challenging the agency’s evaluation.

Keep reading this article at: https://www.jdsupra.com/legalnews/size-recertification-prior-to-award-4583775/

Filed Under: Government Contracting News Tagged With: certification, COFC, contract award, Court of Federal Claims, FAR, recertification, size standards, small business

February 22, 2021 By cs

Why systemic bias exists in government contracting programs

President Joe Biden issued an executive order to advance racial equity and support underserved communities.

The executive order promotes racial equity and emphasizes that advancing that ideal requires a systemic approach to embedding fairness in the decision-making process; it encourages agencies to recognize inequities in their policies and programs and work to redress them.  Agencies are required to assess whether and to what extent their programs and policies perpetuate systemic barriers to opportunities and benefits for underserved communities.

The underlying emphasis here is that programs and initiatives that are meant to support, grow and allow the underserved communities to prosper are often hindered, and obstacles are created which prevent the full impact of the programs to be realized.

Too often, congressional initiatives to support underserved communities are implemented in regulations, programs, procedures and processes in such a way that all but neuter the intended outcomes. At best, under the mantra of ensuring that the benefits flow to the intended recipients, well-intentioned civil servants implement the programs in such a way to “protect” the underserved either from themselves or from would be charlatans, thus negating or totally eliminating the intended impact.  At worst, maligned bureaucrats can’t stand by and witness government programs generate wealth for minorities and the underserved communities, and thereby create procedural roadblocks, hurdles and sand traps.

There are countless examples of the above, but I will provide one for illustrative purposes. Consider the intended benefits of the Small Business Administration’s 8(a) Business Development Program.

Keep reading this article at: https://federalnewsnetwork.com/commentary/2021/02/why-systemic-bias-exists-in-government-contracting-programs/

Filed Under: Government Contracting News Tagged With: 8(a), bias, equity, federal contracting, federal regulations, racial equity, SBA, small business, systemic bias, underserved communities

February 19, 2021 By cs

What to expect for False Claims Act enforcement under new Administration

Although Department of Justice (DOJ) recoveries under the False Claims Act (FCA) reached historic lows in FY2020, President Biden’s administration is poised to usher in a return to aggressive FCA enforcement.

Under President Obama, DOJ’s FCA recoveries hit all-time peaks, totaling over $5 billion in 2012, $6.1 billion in 2014, and $4.9 billion in 2016. From there, they trended consistently downward throughout the Trump Administration, averaging under $3 billion annually. Given the Biden Administration’s focus on tackling the COVID-19 pandemic and stimulating the economy, we anticipate that DOJ’s scrutiny of alleged fraud in government programs will be as probing as ever.

In the 1980s, then-Senator Biden supported the seminal 1986 amendments to the FCA, emphasizing in his Senate remarks that enforcement should enjoy bipartisan support: “Fraud against the Government is not a matter that ought to be used for political advantage. . . . It is not a matter that divides Democrats from Republicans.”

More recently, as Vice President under President Obama, Biden famously oversaw the 2009 Recovery Act in the wake of the 2008 financial crisis and touted the lower-than-average rate of fraud investigations into the stimulus spending. In 2011, he also led the Government Accountability and Transparency Board to advance efforts to detect and remediate fraud, waste, and abuse in federal programs as part of the “Campaign to Cut Waste.” When announcing this campaign, he underscored his commitment “to changing the way government works and . . . stepping up the hunt for misspent dollars.”

Keep reading this article at: https://www.mondaq.com/unitedstates/government-contracts-procurement-ppp/1035290/what-to-expect-for-false-claims-act-enforcement-under-the-biden-administration

Filed Under: Government Contracting News Tagged With: abuse, DOJ, false claims, False Claims Act, FCA, fraud, Justice Dept., law enforcement, overspending, waste

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