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December 7, 2020 By cs

Projections on contract spending for 2021 are murky

Though the Defense Department’s actual numbers won’t come out until January, federal contract spending for fiscal 2020 is projected to land somewhere upwards of $600 billion — an $89 billion increase over 2019.  Around $30 billion of that increase was COVID-related spending.

With a vaccine still on the horizon, and a presidential transition now underway, projections on contract spending for 2021 are murkier than usual.  That said, Kevin Plexico, senior vice president for Information Solutions at Deltek, said there are a few things that can be expected.

First, the topline budget caps are already set for next year due to the Bipartisan Budget Act of 2019.  They provide for modest increases in discretionary spending, which tends to lead to increases in contract spending.  It’s worth noting as well that 2021 is the final year subject to the restrictions of the Budget Control Act.

Second, President-elect Joe Biden has presented a seven-point pandemic response plan, which includes testing and tracing, as well as potentially $25 billion for vaccine development and distribution.  It’s likely to include significant spending on personal protective equipment as well, and it’s possible he could invoke the Defense Production Act toward this end.

Keep reading this article at: https://federalnewsnetwork.com/contracting/2020/11/what-contractors-can-expect-in-2021/

Filed Under: Government Contracting News Tagged With: acquisition workforce, budget, category management, coronavirus, COVID-19, Defense Production Act, DoD, government spending, pandemic, spending, vaccine

August 6, 2020 By cs

Industry executive: Defense Production Act small launch contracts should have been competed

The Defense Department caused an uproar when it announced on June 18 it had selected six small launch companies to receive contracts funded under the Defense Production Act, the head of a space industry group said July 22.

“I know there were a lot of complaints on Capitol Hill and within agencies,” said Chuck Beames, executive chairman of York Space Systems and chairman of the SmallSat Alliance, an industry group that represents space companies including several small launch providers.

“Many companies thought it was unfair, why them and why not us?” Beames said during an online event hosted by the Mitchell Institute.

For the small launch contracts, DoD had set aside $116 million appropriated for Defense Production Act Title 3 investments in key sectors of the defense industry financially impacted by the coronavirus pandemic.

Keep reading this article at: https://spacenews.com/industry-executive-defense-production-act-small-launch-contracts-should-have-been-competed/

Filed Under: Government Contracting News Tagged With: competition, Defense Production Act, DoD, industry, selection criteria, small business, source selection

May 27, 2020 By cs

FEMA continues to push Defense Production Act authority on several fronts

Two notices recently published in the Federal Register indicate the Federal Emergency Management Agency (FEMA) intends to exercise Defense Production Act (DPA) authority in novel ways during the current coronavirus pandemic.

On May 12th, FEMA announced that it plans to invoke DPA authority which permits the President to consult with representatives of industry, business, financing, agriculture, labor, and other interests in order to enter into voluntary agreements or plans of action to help provide for the national defense.

The following day, FEMA published the Emergency Management Priorities and Allocations System (EMPAS) regulations governing FEMA’s use of DPA priorities and allocations authority — which, as we’ve previously covered on several occasions, permit the executive branch to require private companies to prioritize its orders and allocate resources in the private sector as needed to promote the national defense.  FEMA included a new concept of third-party rated orders in its version of DPA regulations.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2020/05/fema-continues-to-push-defense-production-act-authority-on-several-fronts/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized.  Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

Filed Under: Government Contracting News Tagged With: acquisition workforce, coronavirus, COVID-19, Defense Production Act, FEMA. EMPAS, National Defense Strategy, pandemic

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