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August 13, 2018 By AMK

How will the FY 2019 NDAA affect government procurement?

Following the Senate’s recent passage of the Fiscal Year (FY) 2019 National Defense Authorization Act (NDAA), we are rapidly approaching the finish line for this critical piece of legislation.

With the filing two weeks ago of the Conference Report, H. Rept. 115-863, which embodies the agreement between the Senate and the House, it appears likely that a compromise bill will go forward to the President shortly.

The NDAA contains a number of provisions that would reform the procurement process, several of which, are the focus here.

Keep reading this article at: https://federalnewsradio.com/commentary/2018/07/an-update-on-the-fy-2019-ndaa/

Filed Under: Government Contracting News Tagged With: acquisition reform, competition, delivery order, ecommerce, GWAC, interagency acquisition, interagency contracts, NDAA, pricing, procurement reform, task order

March 11, 2014 By AMK

Unauditable DoD, interagency activity are key financial issues

Major financial management problems kept the Government Accountability Office from providing an audit opinion on the federal government’s financial statements for fiscals 2013 and 2012.

“The federal government is not able to demonstrate the reliability of significant portions” of its consolidated financial statements for those years, the GAO says in a Feb. 27 report, citing material weaknesses in internal controls.

The Defense Department’s continued failure to produce auditable financial statements is one of the main reasons that GAO can’t offer an audit opinion, the report says. Another is the government’s inability to accurately reconcile activity between federal agencies.

Improper payments, and the inability of federal agencies to know their full extent, also represent a material weakness, the report says.

Keep reading this article at: http://www.fiercegovernment.com/story/unauditable-dod-interagency-activity-are-key-financial-issues/2014-03-04 

Filed Under: Government Contracting News Tagged With: audit, DHS, DoD, financial risk, GAO, inter-agency contracting, interagency acquisition, interagency contracts

July 31, 2013 By AMK

Interagency acquisition and GWACs explained, related resources identified

A government-wide acquisition contract (GWAC) is one form of interagency acquisition – the process by which one agency uses the contracts and/or contracting services of other agencies to obtain supplies and services.

Interagency acquisitions typically involve two government agencies: the requesting agency, which is the agency with the requirement, and the servicing agency which provides acquisition support, administers contracts for other agencies’ direct use, or both.   In some cases, more than one servicing agency may be involved in an assisted acquisition.

Requesting agencies benefit from the capabilities or expertise of the servicing agency and the efficiencies and economies associated with leveraging resources and requirements. Servicing agencies benefit from the improved pricing and terms and conditions they can negotiate when consolidating, in a justified manner, other agencies’ needs with their own and among requesting agencies.

Interagency acquisitions are commonly conducted through indefinite delivery vehicles (IDVs), such as task and delivery order contracts. The structure of these vehicles is well-suited to the efficiencies and economies that agencies seek through interagency acquisitions. IDVs permit the issuance of orders for the performance of tasks or the delivery of supplies against prepositioned contracts and agreements during the term of the vehicle. The IDVs used most frequently to support interagency acquisitions are multiple award schedules (MAS), government-wide acquisition contracts (GWACs), and multi-agency contracts (MACs).

Types of Interagency Acquisitions

There are two types of interagency acquisitions: direct acquisitions and assisted acquisitions.

  1. In a direct acquisition, the requesting agency places an order directly against the servicing agency’s IDV.   The servicing agency manages the IDV but does not participate in the placement of an order.
  2. In an assisted acquisition, the servicing agency and requesting agency enter into an interagency agreement pursuant to which the servicing agency performs acquisition activities on the requesting agency’s behalf, such as awarding a contract, task order, or delivery order.  In many assisted acquisitions, the servicing agency also manages the IDV against which orders are placed. For example, the General Services Administration’s Federal Acquisition Service will typically place orders against a MAS contract or a GWAC on behalf of its requesting agencies.  Sometimes, a servicing agency may find that another agency’s IDV can better serve the requesting agency’s needs, in which case two servicing agencies would be involved in the interagency acquisition.

Legal Authority

A variety of laws authorize interagency acquisitions. The Economy Act, 31 U.S.C. 1535, provides general authority to undertake interagency acquisitions that is available to agencies when more specific statutory authority does not exist.

An increasing number of interagency acquisitions are falling outside the Economy Act because many of interagency contract vehicles that are widely used today, such as the MAS and GWACs, are not governed by the Economy Act.  Instead, these vehicles are governed by more specific statutory authority.  For example, the MAS is governed by Title III of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 251, et seq.) and Title 40 U.S.C. 501, Services for Executive Agencies. GWACs are authorized by section 5112(e) of the Clinger-Cohen Act (40 U.S.C. 11302(e)).

As a general matter, laws and regulations give agencies the discretion to determine whether to use an interagency acquisition.

The Office of Management and Budget (OMB) says direct acquisitions from GSA’s GWACs are “in the best interest of the government” in its June 2008 memo, Guidance for Improving the Management and Use of Interagency Acquisitions.  OMB designated GSA as the Executive Agent for GSA-issued GWACs under the Clinger-Cohen Act.

The Office of Federal Procurement Policy (OFPP) also asks agencies to look to interagency contracts like GWACs first for efficiencies and cost savings in its September 2011 memo, Development, Review and Approval of Business Cases for Certain Interagency and Agency-Specific Acquisitions.

The Department of Defense issued a memo on July 14, 2011 encouraging the use of 8(a) STARS II, Alliant Small Business, and VETS to meet DoD’s small business contracting and information technology needs. Read the July 14, 2011 memo.

The Department of Navy issued a memo on April 23, 2012 emphasizing the mandatory use of the GSA Alliant/Alliant Small Business for the acquisition of IT development and support services. Read the April 23, 2012 memo.

The Office of the Secretary of Defense issued a memo on August 16, 2012, stating that the Department of Defense acquisition community is to maximize the use of all available authorities to acquire products and services from small businesses. Read the August 16, 2012 memo.

Using an Indefinite Delivery Vehicle

Before placing an order directly against another agency’s IDV, the requesting agency’s contracting officer, or other official designated in accordance with agency procedure, should ensure that an interagency acquisition is in the best interest of the government, taking into account factors such as:

  • Suitability – whether the IDV that would be used can satisfy the agency’s schedule, performance, and delivery requirements, including any statutory, regulatory, and policy requirements.
  • Value – whether the IDV’s pricing, including vehicle access fees (sometimes referred to as an “industrial funding fee”), is fair and reasonable and comparable to what the agency is likely to secure by creating its own contract, and structured to allow the agency to obtain the best value for its needs.
  • Expertise – whether the agency’s contracting office personnel have the appropriate experience and training to properly place an order on a timely basis, take advantage of beneficial features, such as discounts, and effectively administer the order.

GSA GWACs

GWACs were put in place by the General Services Administration to enable federal agencies to buy cost-effective and innovative solutions for information technology (IT) requirements.

GWACs provide access to IT solutions such as systems design, software engineering, information assurance, and enterprise architecture solutions. Small business set-aside GWACs also provide socioeconomic credit.

GWAC benefits

GSA promotes the use of GWACs by promoting a number of potential benefits, including:

  • Premier IT service providers – Access to exceptionally qualified IT service providers enabling innovative solutions at competitive prices.
  • Worldwide IT solutions – GSA GWACs can be used to develop IT solutions anywhere in the world.
  • Access to ancillary support – GWACs facilitate a total integrated solution on a single task order by providing access to ancillary support, such as products and services that are integral and necessary to an IT effort.
  • Savings in time and money through streamlined contracting – GWACs are pre-competed contracts offering a full range of contract types (all types of fixed-price, cost-reimbursement, labor-hour, and time-and-materials) making procurement planning easier.  GWAC task orders can be issued in considerably less time than conventional open market procurements.
  • Scope compatibility reviews – At no cost to the agency, GSA promises to determine whether an agency’s requirement is within scope of a GWAC within two to five business days.
  • Support from Assisted Acquisition Services – GSA’s Assisted Acquisition Services can provide optional contracting, project management, and financial management expertise and support.

GWAC Resources

The Interagency Contract Directory (ICD) is a central repository of Indefinite Delivery Vehicles (IDV) awarded by federal agencies. The ICD assists in strategic sourcing and identifying existing contract vehicles (including those awarded to small businesses).

The “GWAC Dashboard” is located at: http://www.gsa.gov/portal/category/103435.  This is an interactive tool that allows GWAC stakeholders to view and segment GWAC information to make better business decisions.  Users have the ability to explore GWAC data by contract family, federal agency, and industry partner as well as build customized reports for download.

 

Filed Under: Government Contracting News Tagged With: cost savings, efficiency, GSA, GSA Schedules, GWAC, IDIQ, IDV, indefinite delivery, indefinite quantity, information technology, interagency acquisition, interagency contracts, IT, MAC, MAS, OFPP, Schedules, technology, value

June 13, 2013 By AMK

Tighter budgets mean bigger role for GSA

Dan Tangherlini wants more of your business — a lot more.

Installed by the White House a year ago as acting administrator of the General Services Administration to fix the scandal-rocked agency, Tangherlini ushered in a flurry of reforms to dial back conference spending, employee bonuses and accountability lapses at GSA.

Now, his focus is fixed on overhauling the way federal agencies buy goods and services. His aim is to redirect considerably more federal procurement spending through GSA contracts.

“Frankly, the system we have now, the way we structure ourselves now, the way we invest in certain things now, is not sustainable,” Tangherlini said in an hour-long interview with Federal Times editors and reporters. He said agencies will need to find ways to cut costs as much as possible without sacrificing their missions.

Last year, only about 12 percent of federal procurement spending that could have gone to GSA actually did, according to the agency. Tangherlini said his hope is that, within 10 years, the agency can get that figure closer to 90 percent.

Keep reading this article at: http://www.federaltimes.com/article/20130519/DEPARTMENTS07/305190006/Tangherlini-Tighter-budgets-mean-bigger-role-GSA

Filed Under: Government Contracting News Tagged With: duplication of effort, FAS, GSA, GSA Schedules, inter-agency contracting, interagency contracts, Interior Dept., OASIS, Schedules

March 29, 2013 By AMK

Are we headed for an acquisition brain drain?

The top federal procurement officer on Mar. 21, 2013 called for “not a tweak but a full rethink” of the government’s planning for its acquisition workforce, warning that as many as 40 percent of the 36,000 federal contracting officers could retire in the next five years.

Joe Jordan, administrator of the White House Office of Federal Procurement Policy, compared the coming brain drain to water flowing out of a “giant bathtub,” saying he plans to push agencies to “widen the aperture of who they recruit.”

Hiring managers should sell their agencies “as a good place to work for anyone who is smart and wants to serve” and then train them at facilities such as the Federal Acquisition Institute, Jordan told an audience of vendors and agency staff at the “Acquisition Excellence” conference hosted jointly by the American Council for Technology-Industry Advisory Council and the General Services Administration. “Retaining these people in an era of continuing resolutions and pay freezes is a real challenge.”

Keep reading this article at: http://www.govexec.com/contracting/2013/03/are-we-headed-acquisition-brain-drain/62011/?oref=dropdown

Filed Under: Government Contracting News Tagged With: acquisition strategy, acquisition training, acquisition workforce, budget cuts, FAI, GAO, GSA, GSA Schedules, interagency contracts, OFPP, strategic sourcing

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