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April 28, 2016 By AMK

Why you can’t run government like a business

For years, politicians have been telling us the federal government needs to operate more like a business, but can a private sector leader truly be a great public sector leader? Is the reverse true?

Good to GreatSuccessful leadership in business or government requires a mastery of communication and negotiation skills, and an ability to engender trust and credibility. But routinely ignored are the different responsibilities and skills required.

When private sector leaders are tapped for government service, they must recognize that different skills are needed for success. The high wire act of learning on the job can be disastrous for both the office holder and citizens.

Jim Collins, author of Good to Great: Why Some Companies Make the Leap and Others Don’t (HarperCollins 2001), wrote a monograph entitled Good to Great and the Social Sectors: Why Business Thinking is not the Answer. It explores the differences in detail. Collins writes that social sector organizations look to the private sector for leadership models and talent, which may be a mistake, “because of the checks and balances that exceed the capacity of private sector leaders in their facilitative leadership capacity . . . Indeed, perhaps tomorrow’s great business leaders will come from the social sectors, not the other way around.”

Keep reading this article at: http://m.govexec.com/excellence/promising-practices/2016/04/why-you-cant-run-government-business/127213

Filed Under: Government Contracting News Tagged With: big government, check and balance, communication, industry, leadership, negotiation, reform

February 18, 2016 By AMK

Robins Air Logistics Base has not effectively negotiated depot contractor profit, says IG

The Air Force has not effectively negotiated depot labor profit at its logistics complex at Robins Air Base in Warner Robins, Georgia, the Defense Department watchdog concluded, missing an opportunity to cut contractor profit and fees by $9.6 million to $24.9 million.

Robins AFB“Contracting officials did not adequately reduce or eliminate profit and fees paid for work performed” through a public-private partnership, said an inspector general’s report dated Feb. 8. “This occurred because program officials either did not prepare or update the business case analysis supporting the partnership type selected.”

The labor charges based on repair and maintenance affect such weapons programs as the  Boeing C-17 Globemaster III heavy-lift aircraft and the AN/APN-241 high resolution radar system developed by Northrop Grumman.

Keep reading this article at: http://www.govexec.com/contracting/2016/02/air-force-told-save-millions-contractors-depot-labor/125912

Filed Under: Government Contracting News Tagged With: Air Force. IG, business case, cost analysis, cost and price analysis, excessive labor charges, labor rate, labor rates, negotiation, profit

January 14, 2016 By AMK

Reviews reveal common problem: Contract files lack documentation

The Defense Contract Management Agency (DCMA) reports that contract files contain insufficient documentation “across the board.”

DCMADCMA regularly conducts reviews of each unit of the Department of Defense (DoD) that performs contracting functions.  According to Claire M. Grady, who is DoD’s Director of Procurement  and Acquisition Policy, “these reviews assess the effectiveness of the contracting function, analyze and assist in any problem areas, and identify noteworthy practices that may be beneficial to all organizations.”

On December 31, 2015, Grady’s office issued the results of the DCMA’s “procurement management reviews” for FY15.  The report, in newsletter form, reveals that DCMA continues “to observe insufficient documentation across the board” in official contract files.  The most common documentation flaws are:

  • Lack of rationale for contract decision-making in instances of a contract modification, commercial item determinations, proposal evaluations, and contracting strategy, for example.
  • Acquisition strategies aren’t linked to market research.
  • Missing documentation due to over-reliance on electronic systems.
  • Insufficient documentation of conversations leading to contract actions.
  • Lack of documentation of GSA Schedule pricing compliance.
  • Insufficient documentation that an independent government cost estimate (IGCE) provided the most appropriate basis for price comparison.
  • Lack of documentation of work performed by Contracting Officer Representatives (CORs).
  • Technical evaluation documentation not in alignment with solicitation evaluation criteria.

In addition to documentation deficiencies, DCMA notes that proposed prices were accepted without attempts to negotiate, thus representing “lost opportunities to save money or obtain better business deals.”  The agency also found that annual reviews of COR files were not being conducted.

In a more positive vein, DCMA observed what it called “impressive” dedication by DoD’s contracting workforce and a “commitment to mission success.”   They made note of leaders’ efforts to keep morale up and provide for training opportunities and well as electronic resources.

DCMA’s report also devotes attention to the unique challenge e-mails represent in documenting contract files.  Because of the dominance of electronic communication, DCMA concedes that “the question of what should go into the official file is getting harder and harder to answer.”  The agency recommends that “contracting personnel … do some critical thinking prior to putting e-mail correspondence into the file.”  It recommends that the following questions be asked:

  • Does the e-mail contain verbiage inappropriate for an official contract file?
  • Does the e-mail provide a clear, succinct summary of the information for the contract file?
  • If the e-mail represents a decision, is all necessary information to support that decision contained in the e-mail or is a memorandum more appropriate?
  • Should a formal approval signature be obtained for that decision?

DCMA recommends that documentation should address both decisions and the rationale for each decisions.  The full report can be accessed at: DCMA Procurement Management Review – FY15

Filed Under: Government Contracting News Tagged With: acquisition strategy, AT&L, contract administration, contract files, DCMA, documentation, DoD, IGCE, market research, negotiation, pricing, Procurement Management Review

November 19, 2015 By AMK

More lift, less turbulence: 5 management secrets from the AF Secretary

Let’s face it: “compromise” must stop being a four-letter word in Washington.
Deborah Lee James
The author of this article is Deborah Lee James, Secretary of the Air Force.

Piloting a large organization such as the Air Force through turbulent geopolitical air is challenging, and more so without a solid budget. We’ve teetered on the seesaw of instability for too long. We need Washington to come together and compromise to fund the Air Force appropriately and help return us to fiscal stability.

I know from my 34 years in defense and industry that reaching a compromise can be tricky. In my capacity as Secretary of the Air Force, I’ve put my negotiation skills to use with Congress, international leaders, our sister services and industry partners. But my real passion is advocating for our nearly 664,000 active, Guard, Reserve and civilian airmen.

When it comes to collaborative negotiation, I’ve always followed five simple rules: Do your homework; tell the story; aim for a win-win; persevere; and keep your cool. These rules have served me well in both the public and private sector.

Keep reading this article at: http://about.bgov.com/blog/how-does-the-most-powerful-woman-in-the-u-s-air-force-get-things-done/

Filed Under: Government Contracting News Tagged With: Air Force, negotiation, program management, win rate

January 27, 2015 By AMK

VA failed to vet dubious contractors

An internal VA study has found that an east coast office that handles about $4 billion in business each year didn’t do enough checks to vet the backgrounds of companies to which it awarded contracts.

The internal study by consultants found that the Department of Veterans Affairs‘ “Service Area Office East” failed more than half the time to perform at least one of the required responsibility determination reviews, which include checking lists of banned companies or checking basic corporate facts with Dun and Bradstreet and other databases.

The study, obtained through the Freedom of Information Act, found the office would often neglect to fill out required paperwork on why they selected “high risk” contractors and found 94 percent of Federal Supply Schedule contracts had some kind of problem, including lack of proof that contracting officers pushed for government price reductions.

Some contract files didn’t even have signatures.

Keep reading this article at: http://www.washingtontimes.com/news/2015/jan/5/va-failed-to-vet-dubious-contractors/

Filed Under: Government Contracting News Tagged With: background check, embezzlement, FOIA, FSS, GSA, negotiation, price reduction, pricing, risk assessment, VA

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