GAO | The Contracting Education Academy

April 10, 2019 By cs

GAO: Revised analytic approach needed by DoD to support force structure decision-making

To adapt to growing threats, the Department of Defense (DoD) says it must urgently change.

The Government Accountability Office (GAO) looked at DoD’s process for providing senior leaders with the information they need to adjust the size and capabilities of the U.S. military to meet top defense priorities.

Senior leaders are not getting the information they need to make these important decisions.

In GAO’s March 14, 2019 report, they recommend addressing the following challenges:

It is difficult to develop a common “starting point” for force structure analysis.
The military services’ analyses largely supported the status quo.
There was no way to compare options and identify trade-offs across DoD.

The GAO finds that DoD’s analytic approach has not provided senior leaders with the support they need to evaluate and determine the force structure necessary to implement the National Defense Strategy. DoD’s analytic approach — Support for Strategic Analysis (SSA) — is used by the services to evaluate their force structure needs and develop their budgets. However, GAO found that SSA has been hindered by three interrelated challenges:

Products are cumbersome and inflexible. Although DoD guidance states that SSA products are to be common starting points for analysis on plausible threats, including threats identified in strategic guidance, DoD has not kept the products complete and up to date in part because they were highly detailed and complex and therefore cumbersome to develop and analyze.

Analysis does not significantly deviate from services’ programmed force structures or test key assumptions. Although DoD’s guidance states that SSA should facilitate a broad range of analysis exploring innovative approaches to mitigate threats identified in the strategy, the services generally have not conducted this type of analysis because guidance has not specifically required the services to do so.

DoD lacks joint analytic capabilities to assess force structure. Although DoD guidance states that SSA is intended to facilitate the comparison and evaluation of competing force structure options and cross-service tradeoffs, the department has not conducted this type of analysis because it lacks a body or process to do so.

GAO’s report notes:

DoD efforts to revise its analytic approach are in the early stages and have not yet identified solutions to these challenges. Moreover, DoD has attempted reforms in the past without success. Without a functioning analytic process that addresses the above challenges, senior leaders do not have the analytic support they need to prioritize force structure investments that would best manage risk and address the threats outlined in the National Defense Strategy.

See the GAO’s full report and recommendations here: https://www.gao.gov/products/GAO-19-385

April 1, 2019 By cs

GAO says DoD needs to collect data on space acquisition workforce

The Government Accountability Office (GAO) has released a report indicating that the Department of Defense (DoD) does not routinely monitor the size, mix, and location of its space acquisition workforce.

However, data GAO collected and aggregated from multiple DoD space acquisition organizations show that at least 8,000 personnel in multiple locations nationwide were working on space acquisition activities at the end of 2017.

Military and civilian personnel comprise the majority of the overall workforce, while contractor and Federally Funded Research and Development Center personnel also provide support.

DoD recently announced it plans to establish a new Space Development Agency and a United States Space Command. DoD reportedly plans to spend about $65 billion from fiscal year 2019 to 2023 on space acquisition programs — including satellites, launch vehicles, ground components, and user equipment. DoD’s space acquisition personnel perform a variety of activities, such as preparing and reviewing acquisition documents, to manage or oversee programs that develop or procure space capabilities.

According to GAO, several factors hinder DOD’s ability to collect data needed for a comprehensive view of its space acquisition workforce:

DoD does not maintain a complete list of its space acquisition programs.
DoD’s workforce data systems are not configured to identify personnel working on space acquisition activities.
DoD space acquisition personnel are dispersed across organizations and some personnel support both space and non-space programs.

Without complete and accurate data, GAO believes that DoD will be unable to assess gaps in the overall capabilities of the space acquisition workforce. GAO recommends the identification of space programs and the collection of workforce data to better position DoD to ensure that the appropriate space acquisition personnel are assigned to the new Space Development Agency and the United States Space Command.

GAO also believes that comprehensive data on the space acquisition workforce would be beneficial to support DoD’s efforts related to its recent legislative proposal regarding the establishment of the United States Space Force.

Read GAO’s full report here: https://www.gao.gov/assets/700/697574.pdf

March 27, 2019 By cs

DoD seeking comment on how ‘undefinitized contract actions’ are definitized

In the National Defense Authorization Acts for 2017 and 2018, Congress required the Department of Defense (DoD) to implement certain reforms for issuing and definitizing Undefinitized Contract Actions (UCAs).

After a long delay, DoD has issued a proposed rule and requested comments from industry.

UCAs are meant to be used when the Government has urgent needs that do not leave enough time for the parties to agree on all the terms, conditions, and pricing of a formal contract. In those circumstances, the parties can agree to a general framework that allows work to begin and payments to be made on a modified cost-reimbursement basis under a UCA, and the parties agree to definitize the contract in the near future – aspirationally, no later than 180 days after the UCA award date, or before 50 percent of the work is complete, whichever is earlier. (See: DFARS 217.7404-3)

The Defense Federal Acquisition Regulation Supplement (DFARS) currently allows the contracting officer to extend that date to 180 days after the date on which the contractor submits a “qualifying proposal” for definitization. In practice, as the GAO repeatedly has highlighted and as Congress has noted, poor acquisition planning has led to the unnecessary use of UCAs, and UCAs often are not definitized within the 180-day time set by regulation.

One particularly inequitable result of the delayed definitization of UCAs is its effect on profit. Because UCAs are cost-type agreements with the contractor bearing minimal cost risk, the DFARS provides guidance for acceptable profit rates when “a substantial portion of the required performance” is completed before definitization. If a contractor completes a large proportion of the work before the contract is belatedly definitized, an agency often will insist on a profit rate that is materially lower than it would have been if the agency had promptly definitized the contract.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=787536

March 22, 2019 By cs

Why contracting challenges put VA on the ‘High-Risk’ list

The Department of Veterans Affairs has not updated some of its purchasing regulations since 2008, and the resulting problems created for contracting officers at the agency have caused the Government Accountability Office to designate the problem a high-risk area for 2019.

“The VA acquisition is a huge part of the mission over at the Department of Veterans Affairs. They do about $26 billion in procurements each year, and tens of thousands of procurement actions. Since 2015, we’ve had over 31 recommendations that we’ve done there and, unfortunately, 21 of those remain open, and so the high-risk designation centers on a couple of longstanding weaknesses that they’ve had in the acquisition area,” said Chris Mihm, managing director of the GAO Strategic Issues Team, in an agency podcast.

“First is that they don’t have a consistent and coordinated set of policies and regulations across the department. Second is that there is the importance of just a human capital, to make sure that their people are trained, to make sure that their workloads are being appropriately managed. Third, there’s problems that we’ve seen in terms of data and transparency over the acquisition process. And then fourth, that we’re very concerned about the absence of a strategic approach to procurement at the department.”

Keep reading this article at: https://www.federaltimes.com/management/2019/03/07/why-contracting-challenges-put-va-on-the-high-risk-list/

March 18, 2019 By cs

VA procurement and security clearance processing land on GAO’s high-risk list

The Veterans Affairs Department suffers from “fundamental management weaknesses and is one of the most challenged in the federal government,” Comptroller General Gene Dodaro told a Senate panel recently.

Leadership instability, high-level vacancies and a lack of accountability are all problems at the sprawling, decentralized VA, which appears three times on the newly released biennial list of high-risk programs compiled by the Government Accountability Office (GAO).

VA Secretary Robert Wilkie “has a plan but there’s not a lot of detail” for implementing GAO recommendations in such areas as the department’s outdated procurement system that relies too heavily on expensive emergency procurements, Dodaro said.

Keep reading this article at: https://www.govexec.com/management/2019/03/va-procurement-and-security-clearance-processing-land-gaos-high-risk-list/155354

To adapt to growing threats, the Department of Defense (DoD) says it must urgently change.

The Government Accountability Office (GAO) has released a report indicating that the Department of Defense (DoD) does not routinely monitor the size, mix, and location of its space acquisition workforce.

In the National Defense Authorization Acts for 2017 and 2018, Congress required the Department of Defense (DoD) to implement certain reforms for issuing and definitizing Undefinitized Contract Actions (UCAs).

The Department of Veterans Affairs has not updated some of its purchasing regulations since 2008, and the resulting problems created for contracting officers at the agency have caused the Government Accountability Office to designate the problem a high-risk area for 2019.

The Veterans Affairs Department suffers from “fundamental management weaknesses and is one of the most challenged in the federal government,” Comptroller General Gene Dodaro told a Senate panel recently.

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