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Takeaways from DoD’s proposed changes to certain sourcing restrictions

Pursuant to Sections 817 and 881(b) of the FY 2017 National Defense Authorization Act (NDAA), the Department of Defense (DoD) recently issued a proposed rule to amend certain sourcing restrictions found in DFARS subpart 225.70 and related clauses. 

Specifically the proposed rule would amend the DFARS to:

  • Extend the Berry Amendment’s domestic sourcing restrictions to the acquisition of certain athletic footwear for members of the Armed Forces, when the procurement is valued at or below the simplified acquisition threshold [Section 817], and
  • Recognize that Australia and the United Kingdom of Great Britain and Northern Ireland (the UK) are now members of the National Technology Industrial Base (“NTIB”), thereby permitting the United States to acquire certain items (that are subject to the sourcing restrictions in 10 U.S.C. 2534) if they are manufactured in the UK, Australia, Canada or the United States [Section 881(b)].

Keep reading this article at: https://www.insidegovernmentcontracts.com/2018/10/takeaways-dods-proposed-changes-certain-sourcing-restrictions/

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Efforts to speed procurement of commercial off-the-shelf items influenced by ‘The Amazon Effect’

Amazon looms large over the world’s commerce, drawing a stark contrast to old ways of shopping, and an even starker contrast to the way government agencies buy things. In fact, there’s even a term for it: The Amazon Effect.

So, when Section 846 of 2018 National Defense Authorization Act was enacted, providing for the Pentagon and other federal government agencies to buy directly from e-marketplaces, it was immediately dubbed the “Amazon Bill,” and not just because of the Amazon Effect.

Introduced by Congressman Mac Thornberry, the bill was crafted to help speed the procurement process for commercial off-the-shelf (COTS) products through e-commerce portals. The General Services Administration (GSA), in partnership with the Office of Management and Budget (OMB), is currently working on the strategy and plan to properly implement and execute this legislation.

Based on input from the providers of commercial e-commerce portals and e-procurement solutions, the GSA and OMB team has developed the initial plan (Phase I) and is now working on the market research and industry consultation needed to develop the program’s implementation guidance (Phase II). This is not a simple task, as the team must review and consider existing processes and all the requirements of public procurement — buying off negotiated contracts from vetted suppliers who have invested heavily in meeting government requirements, and giving fair treatment to small, disadvantaged, minority women-owned and veteran-owned companies. The target is to have things completed by 2020.

However, the gap between expectations of selection, ease of use and speed that Amazon has created among consumers, and the reality of what is actually possible in the federal government continues to crop up as we move into the next phase of this process, the proof of concept phase.

Keep reading this article at: https://www.publicspendforum.net/blogs/andrew-malay/2018/10/09/future-federal-government-procurement-ecommerce

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Facing industry pressure, Pentagon backs off contract payment changes

Following a wave of criticism from the defense industry and members of Congress, the Pentagon on Monday backed off proposed changes to how companies receive cash flow on their contracts.

In a statement released at the unusual time of 7:19 PM, Deputy Secretary of Defense Patrick Shanahan said the decision to withdraw the proposed acquisition changes stemmed from a lack of “coordination” inside the department.

“Recently, proposed amendments to the Defense Federal Acquisition Regulation Supplement (DFARS) were prematurely released, absent full coordination,” Shanahan’s statement read. “As a result, the Department will rescind the proposed amendments. In coordination with industry, the Department will create a revised rule to implement section 831 of the FY2017 NDAA.”

“The department will continue to partner closely with Congress and industry to examine all reform opportunities, ensuring we provide the best value to taxpayers and critical capabilities to military personnel who defend this great Nation,” Shanahan said.

Keep reading this article at: https://www.defensenews.com/pentagon/2018/10/02/facing-industry-pressure-pentagon-backs-off-contract-payment-changes/

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Defense authorization bill repeals National Interest Determination requirement

For years, the National Industrial Security Program Operating Manual has required Government Contracting Agencies (GCA) to complete a National Interest Determination (NID) before granting access to Proscribed Information to a company that is effectively owned or controlled by a foreign interest and cleared under a Special Security Agreement.
Click on image above to see the NISP Operating Manual.

In the NID, the GCA must find that release of Proscribed Information to the company is “consistent with the national security interests of the United States,” in accordance with [the Directive on Safeguarding Classified National Security Information, 32 CFR Part 2004]. Notwithstanding the modest standard for approval (i.e., “consistent with the national security interests of the United States”), the delay and sometimes capricious nature of NIDs have troubled any number of foreign-controlled companies. The requirement was particularly vexing to the nations that are counted among the closest allies of the United States, the member countries of the National Technology Industrial Base (NTIB) – Canada, Australia, and the United Kingdom. Efforts to streamline the process have met with indifferent success.

In apparent response to these concerns, the FY 2019 defense authorization bill repeals the NID requirement outright: “Effective October 1, 2020, a covered NTIB entity operating under a special security agreement pursuant to the National Industrial Security Program shall not be required to obtain a national interest determination as a condition for access to Proscribed Information.” (Pub. L. No. 115-232, Section 842(a)). Pending repeal, the Secretary of Defense, in consultation with the Director of the Information Security Oversight Office, may waive the NID requirement to obtain a national interest determination for a “covered NTIB entity” operating under an SSA that has (1) a demonstrated successful record of compliance with the National Industrial Security Program; and (2) previously been approved for access to Proscribed Information.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=737412

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Cyber Command’s acquisition authority still in its infancy

U.S. Cyber Command is still in the beginning stages of building out an acquisition capability.

Eight years after its launch and about two years after being granted limited acquisition authority from Congress, the command is still working to demonstrate that its wares and abilities make good use of funds and that it is capable of managing contracts, its acquisition executive said.

“I will say we are in our infancy from an acquisition perspective. We are putting the foundation of the personnel and the skills,” Stephen Schanberger said Sept. 6 at the Billington Cybersecurity Summit. “We’re in the beginning stages right now.”

In the fiscal 2016 defense authorization bill, Congress gave Cyber Command limited acquisition authority capped at $75 million with a sunsetting in 2021. Congressional aides have equated this authority to that of Special Operations Command, noting that they wanted to employ a crawl, walk, run mentality to make sure Cyber Command can execute it.

Keep reading this article at: https://www.fifthdomain.com/dod/cybercom/2018/09/07/cyber-commands-acquisition-authority-still-in-its-infancy/

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