delivery orders | The Contracting Education Academy

October 28, 2016 By AMK

Lockheed’s pitch: Buy our training jet, save taxpayers $1 billion

Lockheed Martin could build new training jets for the U.S. Air Force more quickly than its competitors — enough to save $1 billion over six years, a top company executive said.

bidding-parameters And the service ought to take that into account as it evaluates bids for the $15 billion T-X project, he said.

“What we’re concerned about, frankly, is that the Air Force in their competition right now is not recognizing the value of early delivery or even on-time delivery,” said Rob Weiss, Lockheed executive vice president and general manager of Advanced Development Programs.

Lockheed is running its pursuit of the contract through Weiss’s group, the secretive division better known as the Skunk Works, birthplace of the U-2 spyplane, SR-71 Blackbird, and F-117 stealth fighter.

Here’s how the firm calculates the $1 billion in savings: The Air Force says it wants the first 16 planes ready to train pilots by 2024, but Lockheed says it could deliver the planes three years early. That would allow the Air Force to start getting rid of its T-38 Talon trainers sooner.

Keep reading this article at: http://www.govexec.com/contracting/2016/10/lockheeds-pitch-buy-our-training-jet-save-taxpayers-1-billion/132520

April 30, 2013 By AMK

Lockheed Martin fears $825 million hit from sequestration

Government contractor Lockheed Martin Corp. announced Tuesday (Apr. 23, 2013) that across-the-board budget cuts from sequestration could potentially cut its 2013 sales forecast by $825 million.

The company is the first large contractor to outline the impact of sequestration on its business. In January, Lockheed Martin, like other major contractors, published its 2013 sales guidance with the assumption that sequestration would not occur. A statement published in March said that the company was waiting for further guidance from its “government customers” before making specific business decisions.

Lockheed Martin said in its earning report Tuesday that the primary costs from sequestration-related budget cuts would result from rescheduling and “terminating activity” with its supplier base, severance payments made to employees, cost of closing facilities, and possible impairment costs. The company’s “high level” estimate of sequestration impact also assumes many of the federal reductions will be “achieved through delaying and deferring new program starts,” rather than modifying existing programs with “contractually obligated schedule and delivery requirements.”

Keep reading this article at: http://www.govexec.com/contracting/2013/04/lockheed-martin-fears-825-million-hit-sequestration/62719/?oref=govexec_today_nl

November 9, 2011 By AMK

New rule funnels more contracts to small businesses

Under a proposed new rule, small companies are expected to get more business through multiple-award contractors because that’s where the money has increasingly been going since the mid-1990s.

Regulators have revised the Federal Acquisition Regulation (FAR) to match the fluctuation toward task-order contracts, such as governmentwide acquisition contracts, blanket purchase agreements and agencywide contracts. The Office of Federal Procurement Policy has pushed those types of vehicles to streamline purchasing and get lower prices.

Officials released an interim rule Nov. 2 about the FAR revisions. The rule took effect the same day.

The changes make clear that contracting officers can set aside orders for small businesses both on blanket purchase agreements under the General Services Administration’s Multiple Award Schedules and on multiple-award contracts.

The revisions add a new section in the FAR. It authorizes agencies to set aside one or more contracts for small business on a multiple-award contract, including any of the socioeconomic programs, such as the service-disabled, veteran-owned small business program.

Officials are hopeful for what the changes will bring to small businesses. at the Defense Department, GSA, and NASA expect agencies to take advantage of the set-aside revisions. They want agencies to identify possible multiple-award contracts through which they could set- aside orders for small businesses. They also want agencies to set aside more orders when using GSA’s Schedules, according to the notice.

The changes are based on law and an advisory group.

Congress included language in the Small Business Jobs Act, which became law in 2010, addressing set-asides among task and delivery orders.

Also in 2010, an interagency panel, which was created by President Barack Obama to study small-business contracting, found the issue needed some attention since multiple-award contracts have become so popular.

“There has been no attempt to create a comprehensive policy for orders placed under either general task-and-delivery-order contracts or Schedule contracts that rationalizes and appropriately balances the need for efficiency with the need to maximize opportunities for small businesses,” the Task Force on Small Business Contracting wrote in its report.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Washington Technology. Published Nov. 3, 2011 at http://washingtontechnology.com/articles/2011/11/03/small-business-set-asides-multiple-award-contracts.aspx?s=wtdaily_041111

October 17, 2011 By AMK

SBA proposals could make small-biz credit easier to get

The Small Business Administration is considering changes to its rules that would allow an agency spending its money through a task or delivery order to chalk up the awards to its own subcontracting plans, according to a Oct. 5 Federal Register notice.

Agencies could start to get credit toward their annual small-business subcontracting goals for their orders placed against multiple-agency contracts, a perk for agencies as procurement policy officials push strategic sourcing.

Each agency has to set its own annual goal to make sure that various types of small businesses have an opportunity to participate in its contracts.

Currently though, when purchases come through an inter-agency contract, the agency that holds the contract gets the credit. That applies to the General Services Administration Schedules contracts too.

For example, consider an agency that places an order against a governmentwide acquisition contract. Say a large company gets the award and subcontracts some of the work to a small business subcontractor. The agency that hosts the GWAC gets the credit for hiring a small business, not the agency placing the order.

Prime contracts work differently. If an agency awards an order placed on a GWAC directly to a small business, the purchasing agency gets the points.

Agency officials have told SBA they would like to get the small-business subcontracting credit when they’re spending the money. SBA is also considering giving discretion to the contracting officer from the agency that’s placing the order to establish the subcontracting goals related to the individual orders.

Officials also want real-time insight into subcontracting on interagency contracts. Contractor may have to report their subcontracts with small businesses to the host agency’s contracting officer for each order.

Currently, contractors are reporting to the agency twice a year at the most.

“Reporting on an order-by-order basis will allow the funding agency to receive credit towards its small-business subcontracting goals,” SBA writes in its proposal.

SBA is taking input on the proposal through Dec. 5.

In light of SBA’s changes, Dan Gordon, administrator of the Office of Federal Procurement Policy, has pushed agencies to think beyond their own purchasing and, instead, buy with the government in mind.

Strategic sourcing gives the government leverage over the contractor in setting prices. A greater quantity of potential orders encourages contractors to lower prices.

Office of Management and Budget officials believe agencies want to use more interagency contracts in order to squeeze the most out of their funds and lessen their employees’ workload.

“Particularly in this tight budgetary environment, agencies have told us they are eager for tools that can help them stretch a dollar further and do more with less,” an OMB spokeswoman said Oct. 5.

SBA’s proposed change may make subcontracting goals slightly easier to meet, especially if agencies are turning more toward the interagency contracts, said Ken Dodds, senior attorney at SBA.

He said agencies would find it more difficult to meet subcontracting goals if they didn’t credit.

About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Washington Technology. This article appeared Oct. 12, 2011 at http://washingtontechnology.com/articles/2011/10/12/sba-subcontracting-credit-multiple-agency-contracts.aspx?s=wtdaily_141011.

Lockheed Martin could build new training jets for the U.S. Air Force more quickly than its competitors — enough to save $1 billion over six years, a top company executive said.

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