Contract Administration | The Contracting Education Academy

September 25, 2018 By cs

3 big problems continue to dog federal procurement

Congress and the executive branch have worked for years to improve the quality of and reduce costs for federal acquisition, but some problems continue to hamper many agencies, according to a Sept. 12 Government Accountability Office report.

“Acquisition reform has been on everyone’s agenda for many, many years, decades. There have been proposals in the Congress, there has been changes to the regulations. This has been a very, very active area for a long time,” said Bill Woods, director on the Contracting and National Security Acquisitions Team at GAO, in an agency podcast.

The report evaluated federal agency acquisition improvements against 89 recommendations made by the Acquisition Advisory Panel in 2007 and divided the areas of improvement into three “buckets” that represent the acquisition life cycle: requirements and definitions; competition and pricing; and contractor oversight.

“One is in the requirements, definition process of actually deciding. What is it does the agency want? What does it need, and what’s the best way of getting what we need?” said Woods.

Keep reading this article at: https://www.federaltimes.com/acquisition/2018/09/17/3-big-problems-continue-to-dog-federal-procurement/

September 13, 2018 By cs

GAO acknowledges progress in federal acquisition by Congress and Executive branch, but says ‘challenges endure’

Congress established an Acquisition Advisory Panel to review federal acquisition laws, regulations, and policies — and identify opportunities for improvement. The Government Accountability Office (GAO) just issued an assessment of the progress made since the Panel’s 2007 report.

Here’s what GAO found:

Congress and the executive branch have taken numerous actions to address key issues the Acquisition Advisory Panel identified in its 2007 report, but these actions have not eliminated some enduring challenges. The figure below presents the key issues the Panel addressed in relation to the life cycle of a typical contract as identified by GAO:

Three of the key issues, and the corresponding challenges, align with specific phases in the contracting life cycle:

Requirements Definition: The Panel found that fully identifying requirements before a contract is awarded is key to achieving the benefits of competition. GAO has found that unrealistic requirements have contributed to poor program outcomes at the Department of Defense (DoD), and that the Army’s requirements development workforce decreased by 22 percent from 2008 to 2017.

Competition and Pricing: The Panel said that competition can help reduce prices. GAO’s work shows that competition rates have remained steady government-wide, and declined at DOD. See figure below.

GAO also found that agencies are sometimes using bridge contracts — which GAO has generally defined as either extensions to existing contracts or new short-term, sole-source contracts — to avoid a lapse in service caused by delay of a follow-on contract award. In some instances, bridge contract awards delay opportunities for competition and can place the government at risk of paying higher prices for multiple years. The figure below depicts how an Army bridge contract for computer support services planned for 12 months was extended to 42 months.

Further, GAO’s work shows that agencies have not fully embraced initiatives and techniques intended to reduce the prices they pay, including consolidated purchasing approaches and robust market research.

Contractor Oversight: The Panel raised questions about the capacity of federal agencies to oversee contractors. GAO found that agencies continue to award contracts warranting increased management attention at a steady rate, such as contracts for management support services. With contracts like those for management support services, there is an increased risk that contractors may perform tasks reserved for the government. Additionally, GAO found that heavy workloads at the Department of Veterans Affairs have made it difficult for officials who oversee contractors to ensure contractors adhere to contract terms.

Three of the key issues, and the corresponding challenges, cut across all the phases of the contracting life cycle:

Acquisition Workforce: The Panel found that the federal acquisition workforce faces workload and training challenges. GAO’s work has shown that DoD has enhanced its workforce, but some workforce gaps endure at DoD and across agencies.

Federal Procurement Data: The Panel found that the government’s primary repository for acquisition data contained some unreliable data. Also, GAO found that the system has demonstrated limitations. For example, guidance from the Office of Management Budget (OMB) required that agencies collect specific contract award data, but the system did not have the capability to do so.

Small Business Participation: The Panel found a number of challenges hindering agencies’ efforts to meet small business goals. GAO found small business participation has increased, but many agencies are not in full compliance with requirements governing Offices of Small and Disadvantaged Business Utilization (OSDBUs). For example, the directors of these offices should report directly to agency heads or their deputies, but not all agencies have established this type of direct reporting relationship.

What GAO Recommends

GAO did not make any new recommendations in its Sept. 12, 2018 assessment, but it has made numerous recommendations in the past. Federal agencies have agreed with many of GAO’s recommendations, and have implemented some of them, but not others. For example, GAO has previously made the following recommendations.

The Army should assess the resources needed for the requirements development process. The Army agreed, but it has not yet done so.

OMB should provide guidance for agencies to manage bridge contracts. OMB agreed and has drafted management guidance but has not yet finalized it.

Certain federal agencies should take steps to document how they conduct market research. The agencies agreed and did so.

The Department of Veterans Affairs should develop tools to help oversee contracts. The department agreed and did so.

DOD should have issued an updated acquisition workforce plan in fiscal year 2016. DOD agreed and issued the plan.

OMB should take steps to improve how agencies collect certain procurement data. OMB generally agreed, but has not yet addressed the recommendation.

Certain federal agencies should take steps to comply with OSDBU-related requirements. Most agencies that provided comments agreed or partially agreed. Two agencies — the National Aeronautics and Space Administration, and the U.S. Agency for International Development — have addressed the recommendations.

It its latest report, GAO reiterates its belief that all agencies should implement all of these recommendations.

See the GAO’s full report here: https://www.gao.gov/assets/700/694457.pdf

August 24, 2018 By cs

GAO: National Nuclear Security Administration needs better contract oversight

Some of the field offices of the National Nuclear Security Administration (NNSA) aren’t using a key Energy Department IT system to track important management and operations contracts, an oversight the Government Accountability Office (GAO) warns could potentially cost NNSA millions.

The NNSA, the semi-autonomous agency within the Energy Department, should officially advise its field offices to use a DOE’s Strategic Integrated Procurement Enterprise System (STRIPES) system to manage billions in management and operating (M&O) contracts, GAO said.

Those field offices, said the report, are using the web-based STRIPES for contract writing and modification, but not tapping its document management capabilities.

For the audit, GAO monitored contracts from NNSA’s Office of Acquisition and Project Management (OAPM), which is in charge of managing the M&O contracts for field offices. NNSA spent $11 billion through such contracts in fiscal 2016, GAO noted.

Keep reading this article at: https://fcw.com/articles/2018/08/06/gao-nnsa-rockwell.aspx

July 11, 2018 By cs

Learn how the government administers contracts during week of Aug. 6th

Before summer ends, you have the opportunity to attend a week-long course at Georgia Tech that comprehensively covers the federal contract administration process.

The course — Contract Administration in the FAR — begins Monday, Aug. 6 and concludes Friday, Aug. 10, 2018. Registration details may be found at: https://pe.gatech.edu/courses/con-090-4-contract-administration-far.

Students work in teams to answer questions and solve problems involving contract administration.

Who Should Attend

Government contracting officials will learn not only the rules but the best practices in contract administration. And, this course satisfies required FAC-C and DAWIA certification programs.
Business people, including those to aspire to become federal contractors, will learn how to use the power of being an incumbent to win future contracts as well as how to protect contractual interests.

How You Will Benefit

You will learn:

The fundamental concepts of government contract administration.
The rights of the parties when contract performance is not timely.
Both the government’s and the contractor’s rights when contract performance comes into question.
The policies and procedures for preparing and processing contract modifications.
How to apply the requirements of applicable contract clauses in various contracting scenarios.
The applicable payment clauses and invoicing procedures.
The policies and procedures for filing and processing contract disputes and appeals.
The policies and procedures pertaining to the complete or partial termination of contracts for the convenience of the government or for default.
All pertinent parts of the Federal Acquisition Regulation (FAR).

Content

- - Contract administration basics
  - Contract modifications
  - Administration of selected terms and conditions
  - Delays
  - Quality assurance
  - Payment and cost allowability
  - Disputes and appeals
  - Terminations
  - Closeout

Materials

Each student receives a printed Student Guide, exercises, updated supplemental information, and exclusive access to web-based student resources. A complimentary breakfast is provided each morning, along with snacks throughout each day.

Additional Information

The Contracting Education Academy at Georgia Tech (The Academy) is an approved equivalency training provider to the Defense Acquisition University (DAU) and the Federal Acquisition Institute (FAI). Our courses satisfy both the FAC-C and the DAWIA certification programs. The coursework also provides students the opportunity to earn continuing education unit credits (CEUs) for acquisition and government contracting professionals as well as business professionals working for the government or pursuing opportunities in the federal contracting arena.

More Information and To Register

For more information on this course, please visit: https://pe.gatech.edu/courses/con-090-4-contract-administration-far

April 3, 2018 By cs

Lax oversight of VA project caused $17.7M overrun, construction collapse

The Office of Inspector General for the U.S. Department of Veterans Affairs issued a report that found both a contractor and VA hospital officials demonstrated “shoddy planning” and poor oversight of an $8.7 million generator project that is $17.5 million over budget.

The VA in June 2014 hired Florida-based BCI Construction for $8.7 million to install a generator system and accompanying structure to house the unit at the Jack C. Montgomery VA Medical Center in Muskogee, Oklahoma. According to the inspector general, the VA did not submit an excavation plan for approval before beginning work. Subsequently, a hillside and parking lot collapsed, and the damage will cost $17.5 million to fix.

**Photos show noticeable deterioration of parking lot before collapse.** (photos by VA Medical Center employee)

In addition to supervisory and procedural errors, the inspector general also found that BCI’s worksite to be unsafe. Safety inspections were sporadic, and 49 safety violations were never reported to the government contracting officer, which is a violation of VA policy.

The inspector general recommended requiring contracting officer representatives are qualified and follow VA regulations and mandating that employees follow safety inspection guidelines. The current Muskogee hospital director, hired after the collapse, said the facility has implemented the recommendations.

Keep reading this article at: https://www.constructiondive.com/news/report-lax-oversight-of-va-project-caused-177m-overrun-construction-col/520242/

Read the article in The Oklahoman newspaper on this subject at: http://newsok.com/article/5588662/construction-collapse-at-muskogee-va-hospital-will-cost-17.5-million-to-repair-and-was-the-result-of-poor-planning-federal-report-finds

Read the VA’s full OIG report at: https://www.oversight.gov/sites/default/files/oig-reports/VAOIG-15-04678-114.pdf