Acquisition | The Contracting Education Academy

July 4, 2019 By AMK

Shoddy contracting practices lead to overbilling at EPA

The Environmental Protection Agency is overpaying contractors due to poor contract management controls, according to an audit released Monday by the agency’s office of inspector general.

The audit—conducted from March 2018 to February 2019—examined 11 of 64 total invoices made through a single task order on a $100 million IT contract awarded in 2011 to SRA International following a response to an anonymous hotline complaint about invoices and payments. According to the audit’s “limited review,” all 11 invoices EPA IG tested within the task order “did not comply with contract requirements,” leading to an overbilling of more than $5,100 paid to the contractor.

“Our limited review noted $5,158.29 for an unallowable fixed fee billed and paid by the EPA,” the audit states. “However, without adequate review of all invoices submitted under [the task order], the EPA does not know whether there are further unallowable costs that it has paid for under the task order.”

The IG cites various reasons issues occurred, including staffing problems, high turnover, poor contract file management disorganization and inadequate oversight.

Keep reading article at: https://www.nextgov.com/it-modernization/2019/05/shoddy-contracting-practices-lead-overbilling-epa/157143/

June 25, 2019 By AMK

OFPP issues 4th ‘myth-busting’ memo

The purpose of this memorandum is to improve awareness of vendor engagement strategies that Federal procurement thought leaders are using to create a more responsive buying process, modernize the acquisition culture, and deliver greater value to the taxpayer.

The memorandum also asks each Chief Financial Officers Act (CFO Act) agency to ensure it has designated an industry liaison to work with the agency’s Acquisition Innovation Advocate (AIA), the Office of Small Disadvantaged Business Utilization (OSDBU), and other key acquisition personnel to promote modern vendor communication practices and counter misconceptions that drive today’s risk aversion culture.

The President’s Management Agenda challenges agencies to deliver 21st century services by modernizing information technology, increasing transparency and accountability, and building a modem workforce. 1 To keep up with the rapidly accelerating pace of technological change, a number of agencies have sought better ways to communicate with industry so they can better understand the commercial marketplace, attract new contractors, and encourage current partners to use new processes and develop, test, and offer more modern solutions. Despite this progress, the pace of adoption has been limited relative to the total volume of activity that potentially could benefit from these efforts; only a fraction of our transactions are using these new ways of doing business. For this reason, the Office of Federal Procurement Policy (OFPP) is taking two steps to improve awareness of these modem communication practices.

First, OFPP is using its long-standing “myth-busting” campaign to spotlight how front line acquisition officials and managers have been challenging entrenched ideas about engagement between the public and private sectors. Attachment I highlights ten misconceptions related to innovative practices and showcases successful agency efforts. As additional myths are identified and new practices evolve, new examples will be posted on the Innovation Hub2 of the Acquisition Gateway to foster dynamic conversations among the acquisition workforce.

Keep reading memo at: https://www.whitehouse.gov/wp-content/uploads/2019/05/SIGNED-Myth-Busting-4-Strenthening-Engagement-with-Industry-Partners-through-Innovative-Business-Practices.pdf

May 29, 2019 By AMK

The Pentagon’s software buying has been outdated since 1987

The Defense Innovation Board warned that the Defense Department’s age-old approach to software procurement and development could dull the military’s technological edge.

“A large amount of DOD’s software takes too long, costs too much, and is too brittle to be competitive in the long run,” the board said in the study’s executive summary of its Software Acquisition and Practices report. “If DOD does not take steps to modernize its software acquisition and development practices, we will no longer have the best military in the world, no matter how much we invest or how talented and dedicated our armed forces may be.”

The SWAP study was mandated by the National Defense Authorization Act in fiscal 2018. It examines how the agency procures and advances software and offers recommendations on how it could do so more efficiently.

“This particular assessment, from over 30 years ago, referenced over 30 previous studies and is largely aligned with the assessments of more recent studies, including this one.”

Keep reading article at: https://www.nextgov.com/it-modernization/2019/05/pentagons-software-buying-has-been-outdated-1987/156782/

April 26, 2019 By AMK

What the 809 Panel didn’t quite get right

The Section 809 panel offers an important new idea on how the defense acquisition system could be improved to provide the Pentagon greater access to innovative new technologies that are rapidly developed in the private sector.

But the panel fumbled its recommendations with a contradictory and incoherent legislative approach that would hurt more than it helps. That should not undermine the significance of the panel’s underlying idea: a new focus on the source of funding for commercial items instead of the marketplace in which they are sold. This could encourage companies to develop defense-unique products at their own expense. Today, many are driven away when they are forced to accept regulated pricing and burdensome, government-unique contract terms and conditions.

Successes and Failures

We had high hopes when we helped to write the commercial buying acquisition reforms in the Federal Acquisition Streamlining Act of 1994 and the Clinger-Cohen Act of 1996. These reforms broadened the definition of commercial items, established a commercial item preference, and authorized waivers to government-unique requirements and contract clauses for the purchase of commercial solutions.

As a result, the government went from 476 contracts under simplified commercial item procedures in 1996 to nearly 13 million contracts worth almost $75 billion in 2011. As our colleague Jon Etherton has explained, this enabled the U.S. government to catch up with the information technology revolution that had swept the private sector in the 1990s and likely saved the Department of Defense (DOD) billions of dollars by avoiding unnecessary research and development and the extended acquisition lead times associated with government-unique products.

Keep reading this article at: https://breakingdefense.com/2019/04/what-the-809-panel-didnt-quite-get-right-greenwalt-levine/

April 24, 2019 By AMK

2019 NDAA analysis: A harder look at major defense acquisitions

This is the sixth blog post in a series analyzing the 2019 National Defense Authorization Act (NDAA) as signed into law on Aug. 13, 2018. Stay tuned for more blog posts covering additional topics in the near future from Holland & Knight’s Government Contracts Team.

With the 2019 NDAA, Congress has put teeth behind recommendations stemming from an independent study on sustainment planning in the Defense acquisition process. Reflecting congressional concern with the sustainment and total life-cycle costs of major defense acquisition programs, Section 844 of the 2017 NDAA had required the Secretary of Defense, through an agreement with an independent entity, to conduct a review of the extent to which sustainment matters are considered in decisions related to the requirements, research and development, acquisition, cost estimating, and programming and budgeting processes for major defense acquisition programs.

The 2019 NDAA directs the Secretary of Defense to “commence implementation of each recommendation submitted” as part of this independent assessment, or provide Congress with a “specific justification” for the delayed implementation or non-implementation of a recommendation. Where the Defense Secretary is opting not to implement one of these recommendations, he or she must provide “a summary of the alternative actions the Secretary plans to take to address the purposes underlying the recommendation.”

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=795216

The Environmental Protection Agency is overpaying contractors due to poor contract management controls, according to an audit released Monday by the agency’s office of inspector general.

The purpose of this memorandum is to improve awareness of vendor engagement strategies that Federal procurement thought leaders are using to create a more responsive buying process, modernize the acquisition culture, and deliver greater value to the taxpayer.

The Defense Innovation Board warned that the Defense Department’s age-old approach to software procurement and development could dull the military’s technological edge.

The Section 809 panel offers an important new idea on how the defense acquisition system could be improved to provide the Pentagon greater access to innovative new technologies that are rapidly developed in the private sector.

This is the sixth blog post in a series analyzing the 2019 National Defense Authorization Act (NDAA) as signed into law on Aug. 13, 2018. Stay tuned for more blog posts covering additional topics in the near future from Holland & Knight’s Government Contracts Team.

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