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July 28, 2017 By AMK

Commentary: Contract management’s new certainty of uncertainty

As anyone involved in contracting with the federal government is already well aware, this is the age of complete uncertainty.

What are the government’s requirements? What are its priorities? What is its budget? When will it receive its funding? When will solicitations be issued? When will contract awards be made? Once contract awards are completed, will they last? Will the program survive? What will be the effect on existing contracts of changes in budget priorities, funding reallocations, funding stoppages, funding shortages, government shutdowns, stop-gap funding, the administration’s changing or still unknown goals and intent, etc.?

The only sure “knowns” in contracting today are the multitudinous “unknowns.” The once weakly supported notion of wider use of multi-year funding — to provide increased program stability, efficiencies and contract savings — is a distant memory. Such uncertainty was the subject of a recent message to Congress by the Secretary of Defense.

Keep reading this article at: http://www.federaltimes.com/articles/contract-managements-new-certainty-of-uncertainty-commentary

Filed Under: Government Contracting News Tagged With: acquisition reform, acquisition workforce, agile, contract administration, contract funding, contract management, discount, government shutdown, NCMA, procurement reform, uncertainty

April 12, 2017 By AMK

The path to better management of government’s huge programs

With the enactment of the Program Management Improvement and Accountability Act late last year, the federal government has the opportunity and mandate to address two long-standing challenges: delivering successfully on large-scale change initiatives and addressing the dearth of well-qualified program managers across executive branch agencies.

For a government that operates through the execution of programs — many of them large and complex — such gaps represent enormous risk.

Even in a modular, agile world, the role of program managers remains essential, because change initiatives are more likely to cross multiple organizations. After all, the federal government manages more than $3 trillion in annual budgets and hundreds of huge programs critical to the nation and its citizens.

But the federal landscape remains littered with what Peat-Marwick once dubbed “runaway systems” — projects that are over budget, behind schedule and failing to deliver promised benefits and functionality. Thanks to the PMIAA, the Office of Management and Budget (OMB) now has the responsibility to implement a set of policies to improve program management in government. As the Trump administration takes shape, OMB should leverage this opportunity to increase the probability of successfully delivering on its initiatives.

Keep reading this article at: http://www.govexec.com/excellence/promising-practices/2017/04/path-better-management-governments-huge-programs/136848

Filed Under: Government Contracting News Tagged With: accountability, change management, contract management, management, OMB, PMIAA, Program Management Improvement and Accountability Act. program management, risk

March 17, 2017 By AMK

DCMA’s capability working groups help streamline business processes

Thirteen working groups have been implemented and kicked off under the Defense Contract Management Agency’s Business Capabilities Framework initiative.

According to the capability framework’s website, “DCMA’s capability framework is a set of high level contract management functions that underpin the agency’s strategic plan and capture the results of the daily, multi-functional activities of our personnel in order to provide actionable insight to the Defense Acquisition Enterprise.”

Pam Sutton, the director of the Strategic Analysis Division, said the initiative will allow everyone across the agency to communicate with a similar message the value of DCMA’s mission of providing acquisition insight and oversight.

“We wanted a means to communicate to the undersecretary of defense for acquisition, technology and logistics, and to the Department of Defense as a whole, the value that DCMA brings to the department and communicate in dollars the return on investment,” said Sutton, whose team is responsible for providing support by helping the capability working groups achieve their goals.

One of the major milestones each group is tasked with is to separate policy from procedure, with an emphasis on producing agency manuals and streamlining policies in their respective area to make sure everyone around the agency follows the same guidelines.

The five primary capability working groups include: Product Acceptance and Proper Payment; Indirect Cost Control; Contractor Effectiveness; Negotiation Intelligence; and Contract Maintenance. The three integrating working groups include: Program Support; Corporate Assessment; and Mission Assurance and Industrial Base Viability Assessment. The five enabling working groups include: Facilities Management; Talent Management and Skills Development; Stewardship; Information Technology Management; and Planning and Programming.

Primary Focus: Administering Contracts

The primary groups focus on administering existing or future contracts, while the integrating groups will take the information gleaned from the primary groups, analyzing and repackaging the data to help the agency’s other stakeholders, especially its customers. The enabling working groups were established to provide support to DCMA’s workforce so employees can do their jobs even better.

“Employees from around the agency are a part of these working groups,” said Sutton. “Each working group is comprised of employees from various job series and different grade levels because we wanted to make sure each group was integrated and multifaceted, just as the capabilities are. These groups are purposefully designed to have different specialists working together to problem solve and create better solutions.”

Each working group is led by a manager with two team leaders who reached out to the regions and contract management offices for volunteers to serve on the team. All of the working groups have met and are in the process of working to achieve a set of five milestones. The groups choose how often they meet and can meet face to face or via teleconference or videoconference. There isn’t a minimum or maximum number of employees who can participate in a group.

“This is a great opportunity to participate in creating a framework to make the agency even better,” said Sutton.

Technology Interests Represented

In addition, an IT representative serves on each team.

“It’s important to have someone from IT on each working group to help build a business architecture and provide expertise such as document flow and making sure the data is accurate,” said Sutton.

Sutton said the managers and team leaders meet every Thursday with Marie Greening, DCMA’s chief operations officer, on the status of their group and to discuss topics that affect all of the teams, such as risk assessment. She said she has already started receiving positive feedback about the new working groups.

“People are beginning to understand the benefit of using the capability framework,” said Sutton. “By working in an integrated manner, this will help us to get to one team, one voice.”

Nathan Scoggin, director of the Enterprise Performance Advocacy Division in the Technical Directorate, is a co-team leader with Seay Anne Sheley, the director of the Corporate/Divisional Administrative Contracting Officer Group in the Cost and Pricing Center, for the Indirect Cost Control group. They met with their working group for three days in February at Fort Lee to establish baseline goals and start working on a strategic gap analysis. The group’s capability manager is Tim Callahan, the Contract Directorate’s executive director.

Cost Savings Linked to Suppliers’ Indirect Costs

“It was critical to pull everyone together to establish a working relationship and a capability baseline,” said Scoggin. “Indirect Cost Control offers the Department of Defense an opportunity to realize substantial cost savings by ensuring the supplier’s indirect costs accurately reflect their projected business base and allowable expenses per the Federal Acquisition Regulation. This area has been emphasized by (the Office of the Under Secretary of Defense for Acquisition, Technology, and Logistics) in the Better Buying Power initiative.”

Scoggin said the working group accomplished a lot during the initial meeting.

“We are coordinating a holistic approach to documenting instructions, processes and procedures as agency doctrine,” Scoggin explained. “The working group collaborated on defining Indirect Cost Control and split into smaller groups to optimize the interaction of members. We analyzed existing agency instructions, reviewed draft instructions created by the Integrated Policy Office, and collected data on the activities, processes and tasks for alignment with personnel roles. There was also the identification of areas that presented opportunities for a return on investment, which created a baseline for estimates of the agency’s direct impact in this critical area.

“The level of interest from the field and the eagerness of the participants to help advance the agency’s ICC capability was gratifying,” added Scoggin. “This solid foundation will be critical to our work ahead.”

Jose Ortiz, who is a systems engineer on the Integrated Cost Analysis Team at DCMA Lockheed Martin Denver, said he is excited about participating on the ICC working group. His skillset is in technical analysis, including Forward Rate Pricing Proposals and Cost Estimating Relationships.

“Indirect Cost Control is a key component in the dynamic business world we live in,” he said. “DCMA has an advantage by establishing a team that genuinely knows the processes involved in Indirect Cost Control and can use that knowledge and experience to improve the way business is performed.

“Our initial meeting was significant because of the different skillsets that were represented by each of the attendees,” he added. “This is a great opportunity to work as a change agent in DCMA and a learning experience for everybody in the group. I will use what I learned from this group to orient my peers on the significance that Indirect Cost Control has for the agency and the initiatives that are currently in place or are being set up.”

Read more about the Business Capabilities Framework on DCMA 360 (login required) at https://360.dcma.mil/directorate/PH-DC/DCA/BCF/SitePages/Home.aspx

Source: http://www.dcma.mil/News/Article-View/Article/1106563/dcmas-capability-working-groups-help-streamline-business-processes/

Filed Under: Government Contracting News Tagged With: business systems, contract administration, contract management, cost savings, DCMA, indirect costs, integrated product team, IPT, technology

May 3, 2016 By AMK

Lawmaker sics federal watchdog on Army acquisitions

Sen. Claire McCaskill (D-Mo.) is forcing the Army’s acquisition workforce to answer some tough questions.

The ranking member of the Permanent Subcommittee on Investigations requested that the Government Accountability Office assess the Army’s contracting process, including accountability and oversight.

“Given these ongoing concerns,” McCaskill said in the April 11 letter, citing a series of reports from the GAO dating back to 2008 regarding the Defense Department’s acquisition workforce, “I believe it is necessary for GAO to assess how the Army is currently managing and overseeing its contracting process.”

Included in this assessment, McCaskill wants to know details on how the Army is organized to manage its contracting process, how accountability is maintained, how is workflow and oversight managed, and what metrics are used to assess the outcomes.

The most recent GAO report cited in the senator’s letter, published Jan. 28, revolved around Army contracting officials improperly invoking certain clauses. The report pointed to an “inexperienced and overwhelmed acquisition workforce” as one of the main factors. GAO recommended that the Army provide training and issue a formal reminder to all relevant personnel about the proper use of the contracts in question. DoD concurred with those suggestions.

Keep reading this article at: http://federalnewsradio.com/army/2016/04/lawmaker-sics-federal-watchdog-army-acquisitions/

Filed Under: Government Contracting News Tagged With: acquisition reform, acquisition workforce, Army, clauses, Congress, contract management, GAO, oversight, procurement reform

April 21, 2016 By AMK

Getting FITARA right

Although it’s been nearly 16 months since President Barack Obama signed the Federal IT Acquisition Reform Act (FITARA), we still have a lot of work to do to strengthen the management of government’s IT.

Considered one of the most significant IT reforms since the Clinger-Cohen Act, FITARA expands oversight of the almost $90 billion in federal IT spending. The law’s main objectives are:

  • Provide better visibility into IT expenditures.
  • Improve risk management in IT investments.
  • Engage other senior officials in the oversight of IT investments.
  • Give more authority to the federal government’s more than 250 CIOs to plan, approve and execute IT acquisitions.

Keep reading this article at: https://fcw.com/articles/2016/04/13/comment-delprete-fitara.aspx

See June 10, 2015 memorandum entitled “Management and Oversight of Federal Information Technology” from the Office of Management & Budget at: https://www.whitehouse.gov/sites/default/files/omb/memoranda/2015/m-15-14.pdf

FITARA Scorecard - Nov. 2015

Filed Under: Government Contracting News Tagged With: acquisition planning, acquisition reform, contract management, Federal IT Acquisition Reform Act, FITARA, IT, procurement reform, technology

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