industrial base | The Contracting Education Academy

March 31, 2021 By cs

The price of success vs. the cost of failure

“Uneasy is the head that wears the crown.”

Shakespeare most likely did not appreciate the timeless relevance when he wrote that line for his play Henry IV, Part 2.

When applied to business, the clairvoyance cannot be overstated.

Successful companies achieved their standing by being competitive in their respective markets. A recognized measure of business success is having the company become a part of the Dow Jones Industrial Average. In 2021, there are no original companies left on the index, and many of these original companies haven’t been part of it for many years now.

There are several reasons for that. Some unfortunately failed to adopt disruptive technologies that would have maintained, and perhaps strengthened, their leadership position. One of the lessons to be learned here is that companies can get left behind if they fail to innovate, leaving themselves vulnerable to more agile competitors who keep a pulse on disruptive technologies. This is an everyday reality in the tech industry. Companies must innovate or succumb to the competition.

The defense industry is now facing a disruptive technology moment and looking directly at Silicon Valley for inspiration. Within the Defense Department, the digital revolution is in full swing, with multiple new programs signifying a push for widespread adoption of commercial processes by defense contractors. The department is signaling that it is ready to push the envelope with commercial best practices and will no longer tolerate the “never enough time and money to do it right, but enough time and money to do it over” acquisition process.

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2021/2/24/the-price-of-success-vs-the-cost-of-failure

March 23, 2021 By cs

What does CMMC really mean for small businesses?

If you are a small business, you have an area of expertise, and then there are a lot of departments where you just don’t have the manpower or bandwidth to give it adequate consideration.

That is certainly the case when it comes to concerns like payroll, accounting or HR.

Now, consider how significant your records are and how you keep and secure your computer documents and policies. The security of your organization’s data and that of your clients is going to be essential to your survival. One data spill can shutter your doors, ruin your reputation, and cost you staggering fines.

Now more than ever, businesses do not have the luxury of ignoring the implications of inadequate data management and security.

What It Means, and Why

The recent emergence of the Cybersecurity Maturity Model Certification (CMMC) initiative, which effectively builds off of the tenets of the DoD’s existing DFARS 252.204-7012 regulation requiring contractors to at a minimum “self-certify” their implementation of proper security practices, essentially ups the ante for its Defense Industrial Base by now independently verifying that they have the proper controls in place to protect the government’s data before doing business with them.

Translation: If you currently do work for the DoD or plan on doing work with them in the future, from mowing the lawn to handling freight, you have some digital hygiene to do – NOW.

Keep reading this article at: https://federalnewsnetwork.com/commentary/2021/01/what-does-cmmc-really-mean-for-small-businesses/

March 15, 2021 By cs

2021 NDAA includes numerous provisions impacting government contracts

The National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021 (Pub. L. No. 116-283) was enacted into law on January 1, 2021, when the Senate voted to override President Trump’s veto of the bill.

The Senate’s move, the final step in the legislative process, followed the House’s earlier vote to override President Trump’s veto in December 2020.

The FY21 NDAA sets funding levels and outlines policy priorities for the U.S. Department of Defense (DoD). It also addresses many areas of importance to government contractors, including acquisition policy and management, supply chain and industrial base matters, and small business issues. The final version of the NDAA produced by negotiators on the Conference Committee included provisions from earlier House and Senate versions, which we summarized in an earlier article.

This article includes our annual summary, by topic, of the most relevant provisions of the FY21 NDAA for government contractors. As detailed below, some of the provisions from the earlier House and Senate versions of the NDAA that we highlighted in our previous article were not accepted into the final version. As we’ve previously summarized, the NDAA also includes numerous provisions addressing cybersecurity and artificial intelligence policies with ramifications far beyond DoD, including implementing recommendations from the Cyberspace Solarium Commission’s 2020 Report.

Keep reading this article at: https://www.jdsupra.com/legalnews/national-defense-authorization-act-for-5444697/

February 26, 2021 By cs

Future uncertain for industrial base as pandemic spreads

While the United States continues to deal with challenges posed by the COVID-19 pandemic, it is still too early to know how the health of the defense industry will fare in the long run, according to analysts.

“The magnitude of the virus … it’s really unknown, a lot of this just has to do with when the virus is going to go away, … how quickly [a vaccine] can be deployed,” Nick Jones, the National Defense Industrial Association’s director of regulatory policy, said in an interview. “COVID-19 is going to continue to be an issue until the virus is at very low levels, which may be who knows how long,” he added.

Jones’ comments echo sentiments expressed by Ellen Lord, the Pentagon’s undersecretary of defense for acquisition and sustainment. During a virtual Defense News conference in September, Lord said many of the effects of COVID-19 may be yet to come.

“All the reports that have come out in large part don’t reflect the hits that were taken by business,” she said. “There have been mixed reports in terms of revenue and profitability. I would contend that most of the effects of COVID haven’t yet been seen, because most companies gave their employees time off — they stretched out production, paid a lot of people for working 100 percent when, perhaps, they were only getting 50 percent of the hours in, and so forth.”

Keep reading this article at: https://www.nationaldefensemagazine.org/articles/2021/2/3/future-uncertain-for-industrial-base-as-pandemic-spreads

The National Defense Industrial Association’s second annual Vital Signs report on the health of the U.S. defense industrial base was released on Feb. 2, 2021. To download a copy, please click HERE.

February 11, 2021 By cs

A reminder of the key provisions of the FY21 National Defense Authorization Act

Each year, Congress presents us in Title VIII of the National Defense Authorization Act (NDAA) a potpourri of procurement reforms, changes, and additions.

Some are effective immediately, while some are bound for rulemaking and regulation and surface years from enactment.

Some require analyses, reports, and studies which have no immediate impact but provide a roadmap that can and should be used by government contractors in their business planning.

Finally, some provisions of the NDAAs just wither away and have no impact whatsoever.

Nineteen days before the Trump Administration ended, the U.S. Senate followed the U.S. House of Representatives in overriding the President’s veto of the William (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (H.R. 6395) (FY2021 NDAA), making it law on January 1, 2021. As for its Title VIII, the FY2021 NDAA is no different from its predecessors in its procurement potpourri.

Here’s a tour of key provisions you oughta know.

Keep reading this article at: https://www.jdsupra.com/legalnews/here-to-remind-you-of-the-key-2306320/