Cost | The Contracting Education Academy

December 21, 2018 By cs

Civilians are cheaper than contractors for most Defense jobs, internal report finds

Most jobs in the Defense Department are cheaper with civilian employees as compared to contractors, according to an internal Pentagon report, though the cost comparisons differ based on location, pay grade and job function.

Civil service workers are most likely to be less expensive than contractors performing the same work in the Washington, D.C. region and in the Southeastern United States, the report compiled by the Office of the Secretary of Defense found. More than 75 percent of comparisons in the Southeast the Pentagon ran between government and contract workers showed a higher cost for the private sector, and the capital region was not far behind. Government Executive obtained the never-before reported on document through a Freedom of Information Act request.

In 10 broad job groups the Defense Department studied, contractors came in as the pricier option. That compared to just four in which civilians were more expensive. When divided by Defense component the breakdown was essentially split, though three organizations had 75 percent of comparisons higher for contractor costs and just one saw the reverse.

Keep reading this article at: https://www.govexec.com/management/2018/12/civilians-are-cheaper-contractors-most-defense-jobs-internal-report-finds/153656

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

August 8, 2018 By cs

Navy’s top acquisition priority stumbles out of the gate

The U.S. Navy’s $122.3 billion Columbia-class ballistic missile submarine program is off to an inauspicious start after faulty welding was discovered in several missile tubes destined for both the Columbia and Virginia-class programs, as well as the United Kingdom’s follow-on SSBN program.

**The future ballistic missile submarine Columbia, the lead boat in the next generation of nuclear missile boats.** (drawing courtesy of US Navy)

In all, 12 missile tubes manufactured by BWXT, Inc., are being scrutinized for substandard welds. Seven of the 12 had been delivered to prime contractor General Dynamics Electric Boat and were in various stages of outfitting, and five were still under construction. The Navy and Electric Boat have launched an investigation, according to a statement from Naval Sea Systems Command spokesman Bill Couch.

“All BWXT welding requiring volumetric inspection has been halted until the investigation is complete,” Couch said.

The bad welds came to light after discrepancies were discovered with the equipment BWXT used to test the welds before shipping them to GDEB, according to a source familiar with the issue.

The discovery of a significant quality control issue at the very outset of fabrication of Columbia injects uncertainty in a program that already has little room for delays. The issue is made even more troubling because it arises from a vendor with an excellent reputation, and raises questions about whether the Navy can deliver Columbia on time, something the Navy says is vital to ensuring continuous nuclear deterrent patrols as the Ohio class reaches the end of its service life.

Keep reading this article at: https://www.defensenews.com/breaking-news/2018/08/06/the-us-navys-top-acquisition-priority-stumbles-out-of-the-gate-after-bad-welds-discovered-in-missile-tubes/

April 16, 2018 By cs

Pricetag for Pentagon’s major weapon systems grows by 10 percent

The estimated cost for procuring the Pentagon’s major weapon systems increased 10 percent in 2017, growing from $1.74 trillion to $1.92 trillion in projected costs.

Those numbers were released as part of the department’s annual Selected Acquisition Reports. The SARs cover the 83 major defense acquisition programs that make up the largest programs managed by the former undersecretary of defense for acquisitions, technology and logistics.

However, that increase is not necessarily the result of problems within the acquisition programs, with the report starting that the cost increase is due in part to adding a new major program — the CH-47F Modernized Cargo Helicopter (CH-47F Block II) — to the SAR list, as well as increased quantities on various programs.

Only two programs had Nunn-McCurdy breaches, the government standard in judging unit cost increases, both from the Navy.

Keep reading this article at: https://www.federaltimes.com/pentagon/2018/04/03/pricetag-for-pentagons-major-weapon-systems-grows-by-10-percent/

August 7, 2017 By cs

Federal acquisition shops shouldn’t wait for direction

The next few years may bring significant challenges for federal acquisition organizations. While most agencies will complete the fiscal year 2017 contracting cycle without facing major upheavals, fiscal year 2018 may bring the beginning of a sea change for acquisition and federal agencies at large.

As signaled by the Office of Management and Budget Memo 17-22, “Comprehensive Plan for Reforming the Federal Government and Reducing the Federal Civilian Workforce,” OMB is calling for agencies to take a wholesale look at their performance, cut costs and prioritize programs. As agencies strive to minimize the impact to their mission, support functions will be under the microscope, especially acquisition.

Acquisition organizations will necessarily be on the front line of supporting this efficiency push. Lower budgets and shifting policy goals will mean mission delivery will be even more reliant on acquisition professionals’ abilities to get flexible and high-quality goods and services at the best cost. OMB M-17-22 specifically calls on agencies to consider governmentwide contracts for common goods and services and to avoid redundant contracting actions. Additionally, the memo calls on agencies to investigate external providers or outsource when the total cost would be lower.

Keep reading this article at: https://fcw.com/articles/2017/07/28/comment-acquisition.aspx

Most jobs in the Defense Department are cheaper with civilian employees as compared to contractors, according to an internal Pentagon report, though the cost comparisons differ based on location, pay grade and job function.

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 U.S. Navy’s $122.3 billion Columbia-class ballistic missile submarine program is off to an inauspicious start after faulty welding was discovered in several missile tubes destined for both the Columbia and Virginia-class programs, as well as the United Kingdom’s follow-on SSBN program.

The estimated cost for procuring the Pentagon’s major weapon systems increased 10 percent in 2017, growing from $1.74 trillion to $1.92 trillion in projected costs.

The next few years may bring significant challenges for federal acquisition organizations. While most agencies will complete the fiscal year 2017 contracting cycle without facing major upheavals, fiscal year 2018 may bring the beginning of a sea change for acquisition and federal agencies at large.

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