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OFPP issues 4th ‘myth-busting’ memo

The purpose of this memorandum is to improve awareness of vendor engagement strategies that Federal procurement thought leaders are using to create a more responsive buying process, modernize the acquisition culture, and deliver greater value to the taxpayer.

The memorandum also asks each Chief Financial Officers Act (CFO Act) agency to ensure it has designated an industry liaison to work with the agency’s Acquisition Innovation Advocate (AIA), the Office of Small Disadvantaged Business Utilization (OSDBU), and other key acquisition personnel to promote modern vendor communication practices and counter misconceptions that drive today’s risk aversion culture.

The President’s Management Agenda challenges agencies to deliver 21st century services by modernizing information technology, increasing transparency and accountability, and building a modem workforce. 1 To keep up with the rapidly accelerating pace of technological change, a number of agencies have sought better ways to communicate with industry so they can better understand the commercial marketplace, attract new contractors, and encourage current partners to use new processes and develop, test, and offer more modern solutions. Despite this progress, the pace of adoption has been limited relative to the total volume of activity that potentially could benefit from these efforts; only a fraction of our transactions are using these new ways of doing business. For this reason, the Office of Federal Procurement Policy (OFPP) is taking two steps to improve awareness of these modem communication practices.

First, OFPP is using its long-standing “myth-busting” campaign to spotlight how front line acquisition officials and managers have been challenging entrenched ideas about engagement between the public and private sectors. Attachment I highlights ten misconceptions related to innovative practices and showcases successful agency efforts. As additional myths are identified and new practices evolve, new examples will be posted on the Innovation Hub2 of the Acquisition Gateway to foster dynamic conversations among the acquisition workforce.

Keep reading memo at: https://www.whitehouse.gov/wp-content/uploads/2019/05/SIGNED-Myth-Busting-4-Strenthening-Engagement-with-Industry-Partners-through-Innovative-Business-Practices.pdf

 

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Can contracts be awarded without pricing?

Since the enactment of the Competition in Contracting Act in 1984, price has been an essential element of every contract awarded by the Federal Government under the Federal Acquisition Regulation, along with technical capability and (more recently) past performance. In addition, before making an award, every contracting officer must determine that the price offered by the winning offeror(s) is “fair and reasonable.” 

Agencies have wide discretion in establishing the value of the factors and subfactors under each of these three elements, and frequently price is identified as the least important of the factors to be evaluated.

But what if the price on a solicitation was not a factor to be evaluated at all? As part of the Professional Services Council’s long-standing acquisition reform advocacy agenda, we supported just such an experiment and it is now in effect for some agencies.

In Section 825 of the Fiscal Year 2017 National Defense Authorization Act (NDAA), Congress provided that, for multiple-award indefinite delivery/indefinite quantity (ID/IQ) contracts, DoD, NASA and Coast Guard buying activities are not required to evaluate cost or price during the evaluation of the formation of the ID/IQ contract, provided other conditions are met. If cost or price is not evaluated at formation, however, cost or price must be an evaluation factor in conjunction with the issuance of any task or delivery order under such awarded contract. The Professional Services Council strongly supported that legislative proposal.

What all of these ID/IQ solicitations and resulting contracts have in common is that there is actually no work associated with the formation of the base contract. All of the actual work is solicited under task or delivery orders issued once the base contract is in place.  As such, we argued that agencies were creating irrelevant price evaluation factors in order to comply with the then-existing statutory requirement to evaluate price at contract formation, and agencies were not making true comparative evaluations of offerors’ pricing since there was no factual basis for doing so. And it didn’t matter whether the ID/IQ contract provided for fixed prices, labor hour pricing, or hybrid pricing.

Keep reading article at: https://www.pscouncil.org/a/Content/2019/Can_Contracts_Be_Awarded_Without_Pricing.aspx

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Air Force turns to nontraditional contracting for space technology projects

The Air Force just over a year ago formed a Space Enterprise Consortium to expedite the development and prototyping of satellites, ground systems, space sensors and other technologies that U.S. adversaries are advancing at a rapid pace.

Air Force Secretary Heather Wilson hailed the SpPEC as a successful business model that cuts red tape considerably compared to traditional defense contracting. The consortium so far has started 34 projects worth about $110 million and has been authorized to fund nearly $400 million in additional projects over the next four years.

“The initial ceiling for SpEC was $100 million but was increased to $500 million in order to address the emphasis and demand for other transactions agreements to support prototyping efforts,” Air Force Capt. Benjamin Leaf, the SpEC program manager, told SpaceNews in a recent interview.

Keep reading this article at: https://spacenews.com/air-force-turns-to-nontraditional-contracting-for-space-technology-projects/

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What to expect from ‘other transaction authorities’ in 2019

If there is one term that has punctuated government contracting in 2018, it is “OTA.”

The use of OTAs or “other transaction authority” agreements has grown significantly in the federal government over the last year, due to this contract vehicle’s ability to help federal agencies rapidly incorporate new technologies required to ensure the success of today’s complex missions.

Although this style of contract is not new to the federal contracting community (in fact, it was brought onto the scene in the 1950s to aid NASA in the space race), we can expect to see additional use of OTAs to gain access to groundbreaking technologies faster and more efficiently in 2019.

There are three things you can expect to see from OTAs in the next year and beyond.

Keep reading this article at: https://www.nextgov.com/ideas/2018/12/what-expect-other-transaction-authorities-2019/153713/

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OTAs: Preserving the authority

Other Transaction Authorities are the latest buzzwords in federal contracting, and for good reason.

OTAs have become critical to rapid prototyping in the defense realm, in some cases cutting off years from the time warfighters wait for new systems and capabilities.

OTAs are a business tool that let the government buy products and services using means other than those governed by the Federal Acquisition Regulations. These authorities, initially conceived by NASA in the 1950s and later expanded to the Defense Department in 1994, have recently surged in use and popularity — and praise. However, they also elicit a fair amount of criticism and debate about their future.

Fairness during the award process, soundness of proposals and lack of public information throughout the course of the award are among issues detractors highlight on OTAs. If their supporters want to preserve this acquisition instrument, they must address these concerns.

They’re not small concerns.

Keep reading this article at: https://washingtontechnology.com/articles/2018/08/03/insights-hawk-carlisle-ota.aspx

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