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Industry executive: Defense Production Act small launch contracts should have been competed

The Defense Department caused an uproar when it announced on June 18 it had selected six small launch companies to receive contracts funded under the Defense Production Act, the head of a space industry group said July 22.

“I know there were a lot of complaints on Capitol Hill and within agencies,” said Chuck Beames, executive chairman of York Space Systems and chairman of the SmallSat Alliance, an industry group that represents space companies including several small launch providers.

“Many companies thought it was unfair, why them and why not us?” Beames said during an online event hosted by the Mitchell Institute.

For the small launch contracts, DoD had set aside $116 million appropriated for Defense Production Act Title 3 investments in key sectors of the defense industry financially impacted by the coronavirus pandemic.

Keep reading this article at: https://spacenews.com/industry-executive-defense-production-act-small-launch-contracts-should-have-been-competed/

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Agencies could use improvement in contracting forecast data

According to an industry group study, most federal agencies aren’t sharing details about  their upcoming acquisitions needs as well as they could.
See PSC’s full Scorecard by clicking on image above.

The federal government has room to improve in providing effective contracting forecasts to industry, according to the Professional Services Council, which represents some 400 companies that work with federal agencies.

PSC’s second Federal Business Forecast Scorecard, which evaluated 60 agencies on 15 “key attributes” necessary for an effective forecast, found 28 of the agencies reviewed “needed improvement,” while five agencies—including the Air Force, Centers for Disease Control and Prevention, and Agriculture Department — do not provide forecasts.

PSC rated 16 agencies as “good,” which represented an improvement from PSC’s 2019 forecast.

“PSC is pleased to see substantial improvement in several agencies even as we continue to encourage all federal agencies to refine the information made available to industry,” Alan Chvotkin, PSC executive vice president and counsel, said in a statement. “Clear project needs enable contractors to plan for the needed personnel and resources to compete successfully for U.S. government contracts, thus resulting in better proposals and shorter award decision timelines allowing programs to commence in timely fashion. The benefit to agencies is that companies can prepare better and earlier in the procurement lifecycle to perform on contracts. Agency needs are met, measurable results are achieved, and competition keeps costs down.”

Keep reading this article at: https://www.nextgov.com/cio-briefing/2020/07/agencies-could-use-improvement-contracting-forecast-data/167043/

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Deadline looms for contractors to ditch banned Chinese equipment

Federal contractors face a late-summer deadline to ensure they’re not using banned Chinese equipment and services to fulfill their federal contracts, a top White House federal acquisition official stressed.

Federal contractors have until Aug. 13 to comply with Part B of Section 889 of the 2019 National Defense Authorization Act, Office of Federal Procurement Policy Administrator Michael Wooten said during a July 13 Professional Services Counsel (PSC) webcast.

That provision prohibits government contractors from using technology and services tied to Chinese equipment manufacturers that have been deemed cybersecurity threats by the U.S. government. Those companies include telecommunications gear-makers Huawei and ZTE, as well as video surveillance manufacturer Hikvision.

The Trump administration has worked to push Huawei and ZTE out of U.S. federal and commercial telecommunications networks, both domestically and internationally, deeming the companies’ close relationships to the Chinese government as a virulent cybersecurity threat.

Keep reading this article at: https://fcw.com/articles/2020/07/13/rockwell-defense-contractors-huawei-ban.aspx

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Government contractors and financing a post-coronavirus ‘reboot’ of the economy

When the shutdown ends, contractors will be busy.

When the economy does begin to recover from our nationwide lockdown, one  certainty is that it will not be as simple as “turning the lights back on.”

Companies may have a long road back to full strength as they go through the process of restoring their workforces, rebuilding supply chains and planning for growth in a new, unfamiliar economy.

One certainty, however, is that government contractors will be in high demand as agencies face a backlog of project work as well as new initiatives grown out of coronavirus recovery plans. Taking the right steps now will be essential to aligning these resources with expected need.

So why will government contractors face a surge in demand when COVID-19 restrictions lift? One reason is that many projects that were underway in the spring, particularly construction projects, will once again come back online after being placed on hold due to social distancing guidelines. Construction on roads, bridges and highways is expected to peak as state and federal agencies race to catch up on work planned and postponed for the spring and summer periods.

Keep reading this article at: https://federalnewsnetwork.com/commentary/2020/07/government-contractors-and-financing-a-post-coronavirus-reboot-of-the-economy/

The Contracting Education Academy at Georgia Tech has established a webpage where all contract-related developments related to the coronavirus (COVID-19) are summarized.  Find the page at: https://contractingacademy.gatech.edu/coronavirus-information-for-contracting-officers-and-contractors/

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Federal contract spending reaches its highest level ever in fiscal 2019, marking 4 straight years of growth

Spending is expected to increase even more for fiscal 2020, exceeding $600 billion even before coronavirus stimulus funding is included.
Click on image above to download report.

Federal contract spending grew for the fourth year in a row to reach $597 billion in fiscal 2019, its highest level yet and a 6% increase over the previous year, according to newly released data.  Spending is expected to exceed $600 billion in fiscal 2020, without even including spending on economic stimulus funds in the wake of the novel coronavirus pandemic.

The data, compiled by Bloomberg Government, encompasses prime and unclassified contract spending. Bloomberg released the findings in the ninth annual BGOV200 report, which ranks the top 200 federal contractors. The report analyzes market trends, contractors’ performance and other dynamics among 92 federal agencies in 20 purchasing categories during fiscal 2019.

The agencies with the biggest gains in contract spending in fiscal 2019 included: the Housing and Urban Development, Commerce and Defense departments, and the General Services Administration. Some of the top markets were: facilities and construction; professional services; information technology and aircrafts, ships/submarines and land vehicles.

The 200 companies won the same share of total contracts as in 2018 and 2017, which was 64%. The top six companies — all in the defense industry — were: Lockheed Martin Corp., Boeing Co., General Dynamics Corp., Raytheon Co., Northrop Grumman Corp. and United Technologies Corp. This was the same as last year, except McKesson Corp. was number six in 2018 and this year it ranked seventh. In 2019, 37 companies entered the top 200 for the first time.

Keep reading this article at: https://www.govexec.com/management/2020/06/federal-contract-spending-reaches-its-highest-level-ever-fiscal-2019-marking-4-straight-years-growth/166484/

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