COTS | The Contracting Education Academy

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/

March 20, 2019 By AMK

Creating space for innovation

“Innovation” is an overused buzzword that obscures the messy reality of making change happen.

True innovation requires the right people, the proper mix of technologies and a critical grasp of customers’ needs and expectations. For agencies, the many layers of federal governance and regulation add another degree of difficulty.

FCW recently gathered a group of IT leaders from across government to talk about the obstacles they’re encountering and how they’ve addressed them. The discussion was on the record but not for individual attribution, and the quotes have been edited for length and clarity. Here’s what the group had to say.

Procurement is no longer the obstacle — security is

The Federal Acquisition Regulation’s restrictions, both real and perceived, have long been a friction point for digital reinvention efforts, but most participants said the contracting process is not holding them back.

“It used to be the in-vogue complaint was, ‘Oh, it’s all procurement’s fault,'” one executive said. “But actually, procurement has gotten much better. What our agency is grappling with is the IT monstrosity that came out of” the Federal Information Security Management Act.

“FISMA came out because we were doing these things wrong in government,” he acknowledged. “But now we’ve created this very burdensome process that is not well-aligned to where cloud architecture is going,” and agencies must find new ways to navigate that process. “Obviously, we can’t bend security principles, [but without a new architecture,] you’re waiting two years to deploy. That’s not innovation. That’s not acceptable in this day and age.”

Keep reading this article at: https://fcw.com/articles/2019/02/21/fcw-perspectives-innovation.aspx

October 18, 2018 By AMK

Efforts to speed procurement of commercial off-the-shelf items influenced by ‘The Amazon Effect’

Amazon looms large over the world’s commerce, drawing a stark contrast to old ways of shopping, and an even starker contrast to the way government agencies buy things. In fact, there’s even a term for it: The Amazon Effect.

So, when Section 846 of 2018 National Defense Authorization Act was enacted, providing for the Pentagon and other federal government agencies to buy directly from e-marketplaces, it was immediately dubbed the “Amazon Bill,” and not just because of the Amazon Effect.

Introduced by Congressman Mac Thornberry, the bill was crafted to help speed the procurement process for commercial off-the-shelf (COTS) products through e-commerce portals. The General Services Administration (GSA), in partnership with the Office of Management and Budget (OMB), is currently working on the strategy and plan to properly implement and execute this legislation.

Based on input from the providers of commercial e-commerce portals and e-procurement solutions, the GSA and OMB team has developed the initial plan (Phase I) and is now working on the market research and industry consultation needed to develop the program’s implementation guidance (Phase II). This is not a simple task, as the team must review and consider existing processes and all the requirements of public procurement — buying off negotiated contracts from vetted suppliers who have invested heavily in meeting government requirements, and giving fair treatment to small, disadvantaged, minority women-owned and veteran-owned companies. The target is to have things completed by 2020.

However, the gap between expectations of selection, ease of use and speed that Amazon has created among consumers, and the reality of what is actually possible in the federal government continues to crop up as we move into the next phase of this process, the proof of concept phase.

Keep reading this article at: https://www.publicspendforum.net/blogs/andrew-malay/2018/10/09/future-federal-government-procurement-ecommerce

July 11, 2017 By AMK

Acquisition reform bill contemplates DoD’s use of online marketplaces to purchase commercial products

Imagine if a DoD agency could purchase commercial-off-the-shelf products of any value simply by placing an order at an Amazon-like website – no need for solicitations, quotes, evaluation, or detailed price analysis and absolutely no government-unique terms and conditions.

That is the vision of House Armed Services Committee Chairman Mac Thornberry (R-Texas) in a bill introduced on May 18, 2017. If enacted, this reform would revolutionize the way the Department of Defense acquires commercial off-the-shelf (COTS) products and likely diminish DoD’s use of GSA’s Federal Supply Schedules.

However, as explained below, the prospects of the Bill being enacted into law without significant revision seem low because, as currently drafted, it contravenes many ingrained strands of Federal procurement policy and exposes DoD to unintended consequences and risks.

Proposed Acquisition Streamlining “on Steroids” by Bringing the Online Shopping Experience to Federal Procurement

The proposed use of online marketplaces is set forth in § 101 of the “Defense Acquisition Streamlining and Transparency Act” (H.R. 2511) (the Thornberry Bill). The Thornberry Bill directs the DoD Secretary to establish contracts with one or more “online marketplace providers” to enable DoD-wide use of such marketplaces. For reasons that are not clear, the Bill authorizes DoD to award contracts to marketplace providers without the use of full and open competition.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=603722

July 3, 2017 By AMK

House begins work on another round of DoD acquisition overhauls

For the third year in a row, the annual Defense authorization bill the House Armed Services Committee will begin considering is chock full of provisions that are meant to reform the acquisition system – including one that would represent the biggest change in decades in the way the government buys commercial goods.

Among the more than five dozen acquisition provisions in the bill is committee chairman Mac Thornberry’s proposal to require DoD to buy its commercial-off-the-shelf products from private sector “online marketplaces” like Amazon. The chairman first floated the idea in a discussion draft a month ago, and the version the panel will consider today is mostly unchanged with two major exceptions: it would apply to the entire federal government, not just DoD, and it would require the government to do its buying through at least two online platforms rather than “one or more.”

But the revised version seems to have done little to satisfy industry’s many concerns with the proposal, including that it does not make clear how agencies would comply with numerous other acquisition laws and regulations – including protections for small business – and that it would bypass the Competition in Contracting Act.

Keep reading this article at: https://federalnewsradio.com/defense-news/2017/06/house-begins-work-today-on-another-round-of-dod-acquisition-overhauls/