DFARS | The Contracting Education Academy

December 7, 2018 By cs

DoD moving away from LPTA for IT acquisitions

The Department of Defense (DoD) published a new proposed rule in the Federal Register on Tuesday of this week that follows through on legislation to remove the lowest price technically acceptable (LPTA) acquisition methodology from IT and cybersecurity acquisitions, in favor of the tradeoff source selection process.

The proposed rule, open to comment until Feb. 4, 2019 would be implemented in the Defense Acquisition Regulation Supplement (DFARS), and is based on both the 2017 and 2018 National Defense Authorization Acts (NDAAs), which include language to define when LPTA is to be used.

While initially passed as part of Section 813 in the 2017 NDAA, the 2018 NDAA included some amendments to define when LPTA should be used.

Keep reading this article at: https://www.meritalk.com/articles/dod-moving-away-from-lpta-for-it-acquisitions/

See Proposed Rule by the Defense Acquisition Regulations System on 12/04/2018 here: https://www.federalregister.gov/documents/2018/12/04/2018-26306/defense-federal-acquisition-regulation-supplement-restrictions-on-use-of-lowest-priced-technically

November 28, 2018 By cs

Pentagon lags on policing lowest price, technically acceptable contracts

Two years after Congress required clearer criteria on when the Defense Department could issue lowest price, technically-acceptable (LPTA) contracts, Pentagon contracting officers still lack adequate written guidance, the Government Accountability Office (GAO) concluded in a recently released audit.

Under the fiscal 2017 National Defense Authorization Act (Section 813), the department is required to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to reflect eight criteria that justify the sometimes-controversial use of LPTA’s for awards of $5 million or more. (The requirements governing their use were expanded in the fiscal 2018 version.)

***FAR Part 15 describes the use of several competitive source selection*** ***processes to meet agency needs, which include the LPTA process and*** ***tradeoff process on a best value continuum.***

Though this type of contract can be efficient and quick for obtaining supplies and services, competing contractors often complain that the vehicle can short-change quality.

Keep reading this article at: https://www.nextgov.com/cio-briefing/2018/11/pentagon-lags-policing-lowest-price-technically-acceptable-contracts/152955/

November 9, 2018 By cs

Takeaways from DoD’s proposed changes to certain sourcing restrictions

Pursuant to Sections 817 and 881(b) of the FY 2017 National Defense Authorization Act (NDAA), the Department of Defense (DoD) recently issued a proposed rule to amend certain sourcing restrictions found in DFARS subpart 225.70 and related clauses.

Specifically the proposed rule would amend the DFARS to:

Extend the Berry Amendment’s domestic sourcing restrictions to the acquisition of certain athletic footwear for members of the Armed Forces, when the procurement is valued at or below the simplified acquisition threshold [Section 817], and
Recognize that Australia and the United Kingdom of Great Britain and Northern Ireland (the UK) are now members of the National Technology Industrial Base (“NTIB”), thereby permitting the United States to acquire certain items (that are subject to the sourcing restrictions in 10 U.S.C. 2534) if they are manufactured in the UK, Australia, Canada or the United States [Section 881(b)].

Keep reading this article at: https://www.insidegovernmentcontracts.com/2018/10/takeaways-dods-proposed-changes-certain-sourcing-restrictions/

October 8, 2018 By cs

Facing industry pressure, Pentagon backs off contract payment changes

Following a wave of criticism from the defense industry and members of Congress, the Pentagon on Monday backed off proposed changes to how companies receive cash flow on their contracts.

In a statement released at the unusual time of 7:19 PM, Deputy Secretary of Defense Patrick Shanahan said the decision to withdraw the proposed acquisition changes stemmed from a lack of “coordination” inside the department.

“Recently, proposed amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) were prematurely released, absent full coordination,” Shanahan’s statement read. “As a result, the Department will rescind the proposed amendments. In coordination with industry, the Department will create a revised rule to implement section 831 of the FY2017 NDAA.”

“The department will continue to partner closely with Congress and industry to examine all reform opportunities, ensuring we provide the best value to taxpayers and critical capabilities to military personnel who defend this great Nation,” Shanahan said.

Keep reading this article at: https://www.defensenews.com/pentagon/2018/10/02/facing-industry-pressure-pentagon-backs-off-contract-payment-changes/

July 25, 2018 By cs

Congress can simplify commercial buying and increase government innovation

For decades Congress has demonstrated its deep interest in simplifying the federal government’s ability to buy commercial products and services. It recognized that to solve government’s most difficult problems, the government must have ready access to the innovative and rapidly evolving commercial marketplace.

But the government’s transactions in the commercial marketplace, which should be quick and easy, have gotten more complicated over the years, not less so. This is due in large part to the volume and complexity of government-unique contract terms and conditions.

Volume 1 of the Section 809 Panel report includes several recommendations for Congress’ consideration that will truly simplify contracts for commercial products and services. Among other strategies, Recommendation 2 makes the case for Congress retaining the authority to determine the applicability of new government-unique requirements that are well-intended but burdensome, rather than delegating that authority to the Federal Acquisition Regulatory Council or the Department of Defense.

In 1994, the Federal Acquisition Streamlining Act took important steps to make the government more commercial-like in its dealings in the commercial marketplace. FASA limited the applicability of many, but not all, procurement-related statutes in two ways. First, many statutes in effect at the time FASA was enacted were made inapplicable to commercial buying, significantly simplifying federal contract compliance and administrative burdens.

Keep reading this article at: https://www.defensenews.com/opinion/commentary/2018/07/17/congress-can-simplify-commercial-buying-and-increase-government-innovation/

Two years after Congress required clearer criteria on when the Defense Department could issue lowest price, technically-acceptable (LPTA) contracts, Pentagon contracting officers still lack adequate written guidance, the Government Accountability Office (GAO) concluded in a recently released audit.

Pursuant to Sections 817 and 881(b) of the FY 2017 National Defense Authorization Act (NDAA), the Department of Defense (DoD) recently issued a proposed rule to amend certain sourcing restrictions found in DFARS subpart 225.70 and related clauses.

Following a wave of criticism from the defense industry and members of Congress, the Pentagon on Monday backed off proposed changes to how companies receive cash flow on their contracts.

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