Congress | The Contracting Education Academy

September 6, 2019 By cs

Budgets require industry-government cooperation

We should all celebrate the recent passage and signing of the 2019 Bipartisan Budget Act that ended the federal budget impasse and did away with the destructive spending caps imposed by the 2011 Budget Control Act.

Thankfully, the way legislators wrote the budget deal and its two-year coverage means the threat of sequestration has finally passed.

Observers will note, however, the budget deal hints at the feared decline of defense resourcing going forward. While the defense topline grows by 2.64 percent in 2020, that growth slides to 0.33 percent in 2021; and these percentages do not consider inflation. That is well below the 3-5 percent real growth after inflation called for by former Secretary of Defense Jim Mattis. He saw that growth level as a requirement to regain readiness and make the necessary investments in modernization and recapitalization to ensure the U.S. military can carry out the National Defense Strategy.

While defense experts, think tanks and the Defense Department all call for fully resourcing the strategy, harbingers of flatter defense budgets yet again call for the hard thinking required to get the absolute most out of every defense dollar spent. One critical avenue of that approach is better government-industry collaboration. The more government can work with industry to identify key technology and workforce investments, telegraph future requirements, and develop innovative contracting vehicles, among other things, the more efficiently and cost-effectively industry can provide the best services and products to our warfighters over time.

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2019/8/29/ndia-perspective-budgets-require-industry-government-cooperation

July 3, 2019 By AMK

Why OMB is ushering us into the second golden age of acquisition

Welcome to the second golden age of federal acquisition reform.

The frustration and the technology are aligning for the Trump administration, the Congress and industry to come together to make the first set of significant, almost seismic changes since the 1990s.

“We are in that rare moment when we have the combination of factors, the customer demand for speed and agility, the congressional receptiveness for acquisition reform legislation, the strong push from OFPP on the importance of innovation such as their creation of acquisition innovation councils, category management memos and the myth busters four memo and strong actions from a number of agencies really propelling acquisition innovation,” said Jeff Koses, the senior procurement executive at the General Services Administration, at the Coalition for Government Procurement’s spring conference in Falls Church, Virginia. “Across GSA we have a number of things that I regard as innovation plays in contracting and policy domain, in the communication domain and in the technology domain.”

To that end, the Office of Federal Procurement Policy sent six legislative proposals to Congress at the end of April to clean up a few things, but more importantly to ask for permission to test and spread innovative acquisition concepts across government.

Keep reading article at: https://federalnewsnetwork.com/reporters-notebook-jason-miller/2019/05/why-omb-is-ushering-us-into-the-second-golden-age-of-acquisition-reform/

June 13, 2019 By AMK

Federal online shopping platform coming soon – GSA to issue prototype RFP within the year

In the latest step towards delivering on the long-promised “Procurement Through Commercial e-Commerce Portals” program, the General Services Administration has announced plans to build a proof-of-concept for federal online shopping, aiming to issue an RFP by the end of the year for web-based acquisition platforms.

According to GSA’s notice, the platforms will be based on an “e-marketplace” model — one that connects federal customers to a range of competing vendors, similar to online shopping websites in the private sector. These “e-commerce portals” will carry “routine commercial items found on today’s commercial e-commerce platforms (with office supplies and industrial products being amongst the most common)[.]” Purchases will be limited to the micro-purchase level, which is currently set at $10,000.

The agency expects to award multiple prototype contracts, and it indicated that further proof-of-concept contracts may be needed to test other online purchasing models. These other purchasing models include an “e-commerce model,” under which each portal provider would serve as the seller of goods, and an “e-procurement model,” under which the acquiring agency would manage the platform using software supplied by a contractor to facilitate sales through multiple vendors. On this point, GSA explained that “the one model that best fits GSA’s priorities for an initial proof of concept is the e-marketplace model.”

Keep reading article at: https://www.insidegovernmentcontracts.com/2019/05/federal-online-shopping-platform-coming-soon-gsa-to-issue-prototype-rfp-within-the-year/

June 12, 2019 By AMK

Defense contracting fraud: A persistent problem

During the five year period from 2013-2017, there were 1,059 criminal cases of defense contracting fraud resulting in the conviction of 1,087 defendants, including 409 businesses, according to a newly released Department of Defense report to Congress. There were another 443 fraud-related civil cases resulting in judgments against 546 defendants.

During that same period, the Department of Defense entered into more than 15 million contracts with contractors who had been indicted, fined, and/or convicted of fraud, or who reached settlement agreements. The value of those contracts exceeded $334 billion, according to the DoD report. See Report on Defense Contracting Fraud, DoD report to Congress, December 2018.

The report was prepared in response to a requirement in the FY2018 defense authorization act at the initiative of Sen. Bernie Sanders. It was released this week under the Freedom of Information Act.

A previous report covering the period of 2001-2010 was produced by the Department of Defense in 2011, also at the request of Senator Sanders. The earlier report likewise found extensive fraud including criminal and civil offensive in defense contracting.

“Simply put, the Pentagon continues to be riddled with waste, fraud and abuse of taxpayer funds to a degree unmatched across the federal government,” Sen. Sanders said in 2017. “It is unacceptable that the Department of Defense continues to lose vast sums of taxpayer money because of fraud perpetrated by major defense contractors. This has got to end.”

Keep reading article at: https://fas.org/blogs/secrecy/2019/05/defense-contracting-fraud

June 4, 2019 By AMK

Can contracts be awarded without pricing?

Since the enactment of the Competition in Contracting Act in 1984, price has been an essential element of every contract awarded by the Federal Government under the Federal Acquisition Regulation, along with technical capability and (more recently) past performance. In addition, before making an award, every contracting officer must determine that the price offered by the winning offeror(s) is “fair and reasonable.”

Agencies have wide discretion in establishing the value of the factors and subfactors under each of these three elements, and frequently price is identified as the least important of the factors to be evaluated.

But what if the price on a solicitation was not a factor to be evaluated at all? As part of the Professional Services Council’s long-standing acquisition reform advocacy agenda, we supported just such an experiment and it is now in effect for some agencies.

In Section 825 of the Fiscal Year 2017 National Defense Authorization Act (NDAA), Congress provided that, for multiple-award indefinite delivery/indefinite quantity (ID/IQ) contracts, DoD, NASA and Coast Guard buying activities are not required to evaluate cost or price during the evaluation of the formation of the ID/IQ contract, provided other conditions are met. If cost or price is not evaluated at formation, however, cost or price must be an evaluation factor in conjunction with the issuance of any task or delivery order under such awarded contract. The Professional Services Council strongly supported that legislative proposal.

What all of these ID/IQ solicitations and resulting contracts have in common is that there is actually no work associated with the formation of the base contract. All of the actual work is solicited under task or delivery orders issued once the base contract is in place. As such, we argued that agencies were creating irrelevant price evaluation factors in order to comply with the then-existing statutory requirement to evaluate price at contract formation, and agencies were not making true comparative evaluations of offerors’ pricing since there was no factual basis for doing so. And it didn’t matter whether the ID/IQ contract provided for fixed prices, labor hour pricing, or hybrid pricing.

Keep reading article at: https://www.pscouncil.org/a/Content/2019/Can_Contracts_Be_Awarded_Without_Pricing.aspx

We should all celebrate the recent passage and signing of the 2019 Bipartisan Budget Act that ended the federal budget impasse and did away with the destructive spending caps imposed by the 2011 Budget Control Act.

Welcome to the second golden age of federal acquisition reform.

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