GAO | The Contracting Education Academy

January 13, 2020 By cs

3 must-read acquisition provisions in the 2020 NDAA

After a long Congressional conference period the 2020 Defense Authorization Act (NDAA) was finally signed into law, and with it come some changes to the defense acquisition process.

Federal News Network compiled three provisions that are particularly interesting regarding the procurement of military weapons.

These provisions involve intellectual property, middle-tier acquisition, and the establishment of a Defense Civilian Training Corps, and are summarized here:

The 2020 NDAA gives DoD more leeway in experimenting with that policy by creating a pilot program on intellectual property evaluation.
The middle-tier acquisition method allows for rapid prototyping and fielding within five years, as long as certain criteria are met.
The Defense Civilian Training Corps will train civilians for public service in the Department of Defense.

Read the complete Federal News Network article at: https://federalnewsnetwork.com/defense-main/2019/12/three-must-read-acquisition-provisions-in-the-2020-ndaa/

January 9, 2020 By cs

A win-win contracting tool for the Pentagon and the private sector

The Defense Department is taking measures to get new capabilities to warfighters more quickly, and they’re working. One of these tools is called Other Transaction Authority.

The Pentagon has made increasing use of this contracting method, which has existed since the space race but was expanded dramatically in the 2016 National Defense Authorization Act.

The value of Other Transaction Authority agreements has increased nearly 300% since 2016, from $1.4 billion to $3.7 billion, according to a Government Accountability Office report released in November.

The normal defense contracting system is, by all accounts, too slow. Secretary of the Army Ryan McCarthy has likened the procurement system to baseball: “It’s like having a 19-year-old kid that can throw a 100-mile-an-hour fastball but who won’t make the majors until he’s 39.”

Keep reading this article at: https://www.dailysignal.com/2019/12/30/a-win-win-contracting-tool-for-the-pentagon-and-the-private-sector/

January 7, 2020 By cs

DoD releases long awaited policy on mid-tier acquisition

After three years and a serious reprimand from Congress, the Defense Department finally released its guidance for the processes governing middle-tier acquisition.

***Click on image above to download document.***

The Dec. 30, 2019 instruction, signed by defense acquisition and sustainment undersecretary Ellen Lord, gives DoD agencies direction for when and how to use middle-tier acquisition, and explains leadership responsibilities for the contracting method.

The DoD guidance, at least temporarily, allays concerns from Congress and the Government Accountability Office about unclear oversight of middle-tier acquisition.

The document doesn’t really tell readers much more than is already known about the process, but rather codifies the way DoD uses it, and then leaves a large part of the way the method is used up to the individual defense agencies.

DoD explains that the Defense Acquisition University will create a companion guide in the near future to expand upon the guidance.

Keep reading this article at: https://federalnewsnetwork.com/contracting/2020/01/dod-releases-long-awaited-policy-on-mid-tier-acquisition/

December 12, 2019 By cs

GAO says DoD’s fraud assessment efforts should include examination of contractor ownership

Some companies doing business with the Defense Department have opaque ownership structures that may conceal who owns, controls, or benefits from the company.

This GAO illustration depicts how DoD’s use of an ineligible foreign manufacturer — that illegally exported sensitive military data and provided defective and nonconforming parts — led to the grounding of at least 47 U.S. fighter aircraft.

The Government Accountability Office (GAO) recently identified fraud and national security risks to DoD from opaque ownership such as ineligible contractors receiving contracts and foreign firms receiving sensitive information through U.S.-based companies.

These risks, identified through GAO’s review of 32 adjudicated cases, include price inflation through multiple companies owned by the same entity to falsely create the appearance of competition, contractors receiving contracts they were not eligible to receive, and a foreign manufacturer receiving sensitive information or producing faulty equipment through a U.S.-based company.

For example, one case involved an ineligible foreign manufacturer that illegally exported sensitive military data and provided defective and nonconforming parts that led to the grounding of at least 47 fighter aircraft.

The GAO reports that DoD has taken some steps that could address some of the risks related to contractor ownership in the procurement process but has not yet assessed these risks across the department. DoD, in coordination with other agencies, revised the Federal Acquisition Regulation (FAR) in 2014 to require contractors to self-report some ownership information. In addition, DoD has taken steps to identify and use ownership information — for example, as part of its supply-chain risk analysis when acquiring critical components. DoD has also begun a department-wide fraud risk management program but, according to GAO, it has neither assessed risks of contractor ownership across the department nor identified risks posed by contractor ownership as a specific area for assessment.

GAO contends that assessing risks arising from contractor ownership would allow DoD to take a strategic approach to identifying and managing these risks, make informed decisions on how to best use its resources, and evaluate its existing control activities to ensure they effectively respond to these risks.

Keep reading this GAO report summary at: https://www.gao.gov/products/GAO-20-106#summary

December 2, 2019 By cs

Pentagon nearly doubles use of Other Transaction Authority purchases

The Defense Department is embracing the alternative procurement method but could use more oversight of the deals, a Government Accountability Office audit found.

The Pentagon upped its use of purchases through other transaction authority, or OTAs, significantly over the past fiscal year, nearly doubling both the number of total OTA contracts and total investment.

In fiscal 2017, the Defense Department issued 384 new awards, modifications or orders for OTA contracts totaling $2.1 billion in obligations. In 2018, the Defense Department contracted 618 OTA awards totaling $3.7 billion, according to a Government Accountability Office audit released this week.

Based on data from the Federal Procurement Data System, the audit indicates the Pentagon has more than tripled its use of OTA contracts since it received enhanced authorities from the 2016 National Defense Authorization Act. In that year, Defense agencies issued only 248 OTA awards for approximately $1.4 billion.

Keep reading this article at: https://www.nextgov.com/emerging-tech/2019/11/pentagon-nearly-doubles-use-other-transaction-authority-purchases/161504/

After a long Congressional conference period the 2020 Defense Authorization Act (NDAA) was finally signed into law, and with it come some changes to the defense acquisition process.

The Defense Department is taking measures to get new capabilities to warfighters more quickly, and they’re working. One of these tools is called Other Transaction Authority.

After three years and a serious reprimand from Congress, the Defense Department finally released its guidance for the processes governing middle-tier acquisition.

Some companies doing business with the Defense Department have opaque ownership structures that may conceal who owns, controls, or benefits from the company.

The Defense Department is embracing the alternative procurement method but could use more oversight of the deals, a Government Accountability Office audit found.

Search this Website