OMB | The Contracting Education Academy

June 25, 2020 By cs

Pentagon IG offers advice for effective contracting during pandemic

With billions of dollars in CARES Act funding yet to be spent and several billion more potentially in the appropriations pipeline, it’s far too early to tell how effectively the Defense Department is spending its share of the disaster funding.

**Click on image above to download the report.**

But according to the Pentagon’s inspector general, DoD — and its auditors — have more than enough experience with prior emergencies to know what to do, and what not to do, to make sure money is spent well even when contracts have to be executed quickly.

In a new special report, drawing on 36 earlier audits that dealt with contracting during previous emergencies, the OIG tries to outline what it considers best practices for contracting under time pressure.

“It is a very fast paced, ever changing environment right now with this pandemic. But what contracting officers are experiencing right now is similar to pressures that were present during past disaster response and relief efforts. So our intent here was to highlight best practices and lessons learned that really span a significant portion of time,” Theresa Hull, the assistant inspector general for audit acquisition, contracting, and sustainment said in an interview for Federal News Network’s On DoD. “Our reports go back to Hurricane Katrina in 2005 but also include the more recent hurricanes, Florence and Irma, and we highlighted four areas that the contracting community should be aware of: Communication and coordination; documentation, consistency in the contracting process, and staffing and training.”

Keep reading this article at: https://federalnewsnetwork.com/on-dod/2020/06/pentagon-ig-offers-advice-for-effective-contracting-during-pandemic/

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/

June 17, 2020 By cs

Pentagon says it needs billions to repay contractors for employee leave

The Coronavirus Aid, Relief, and Economic Security (CARES) Act gave the Defense Department the authority to reimburse federal contractors who faced sudden expenses because of COVID-19.

But the bill didn’t include any new funding to make those payments, and DoD officials are telling Congress they need billions of additional dollars to make contractors whole.

One section of the law — Section 3610 — lets agencies repay contractors who put their employees on paid leave rather than furloughing or laying them off. The idea was to keep as much of the industrial base workforce as possible in a ready state.

But those reimbursements are “subject to the availability of appropriations,” which aren’t expected to come through until Congress passes the next round of coronavirus relief. DoD officials have submitted a rough cost estimate to the Office of Management and Budget (OMB).

But in testimony before the House Armed Services Committee (HASC), Ellen Lord, the undersecretary of Defense for acquisition and sustainment, declined to provide an exact figure, saying only that it’s likely to be in the double-digit billion dollar range. In any event, the bill is expected to be so large that DoD can’t pay it out of its existing budget without affecting other programs, she said.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/06/pentagon-says-it-needs-billions-to-repay-contractors-for-employee-leave/

May 29, 2020 By cs

The White House is rewriting contracting language to clarify security liability

The Office of Management and Budget (OMB) plans to standardize language in all government contracts with cloud vendors that would update liability terms regarding security, according to the official in charge of leading federal agencies’ move to the shared-responsibility ecosystems.

**Technology vendors precluding liability in government contracts has long been an issue, and now COVID-19 has sped up some agencies’ cloud migration and amplified calls for cybersecurity assurances.**

“I think there is a need to update our [service level agreements] with the cloud providers and we’re actively working on that within [the General Services Administration],” Thomas Santucci, the director of the Data Center and Cloud Optimization Infrastructure Program Management Office at GSA, said.

Santucci provided a status report on the government’s efforts to improve efficiency and lower costs by moving to the cloud during a virtual conference the Digital Government Institute hosted today.

“OMB has just stood up a [program management office] to work on a cloud SLA template for the federal government to be attached to every contract,” Santucci said when asked about the liability issue and whether cloud service providers or government customers should be held responsible for security.

Security was one of the topics mentioned in establishing the new contract templates, he said.

Keep reading thi9s article at: https://www.nextgov.com/it-modernization/2020/05/white-house-rewriting-contracting-language-clarify-security-liability/165549/

May 5, 2020 By cs

Navy hoping to keep some acquisition momentum during COVID-19

The Navy says the way it is procuring goods and services during the COVID-19 outbreak may help quicken acquisitions later on during the crisis and keep programs on target for whenever it ends.

Speaking at the recent virtual Sea Air Space Conference, Navy acquisition chief James Geurts said the service is injecting money into the acquisition system to keep companies liquid with cash so they can stay afloat. The Navy is also speeding up contract awards.

“We are going to apply all the things we’ve learned during this to accelerate during the recovery phase because ships still need to come out on time,” Geurts said. “We’ve got to do the maintenance, we’ve got to continue to supply lethal capabilities to our sailors and marines and we can’t afford to lag the recovery.”

Geurts said he does not foresee the crisis affecting the Navy’s priorities after things return to normal. The Navy still wants at least 350 ships and it wants to field its Columbia-class submarine. The trick is keeping everything on schedule or close to it through the coronavirus outbreak.

“What’s important is that we don’t let the delay and disruption carry any further than it has to into the execution of our programs,” Geurts said. “There will be delay and disruption. The program teams have looked hard into where we were prior to this crisis so we can separate issues we had going in from issues caused by the crisis.”

Keep reading this article at: https://federalnewsnetwork.com/navy/2020/04/navy-hoping-to-keep-some-acquisition-momentum-during-covid-19/

May 1, 2020 By cs

DoD expects three month acquisition delays, billions in payouts to contractors

The Defense Department will suffer serious setbacks on developing weapons and pay companies billions of dollars in relief funds as a result of COVID-19.

The Pentagon expects a three-month delay across the board for major acquisition programs, putting a kink in systems like the Ford Class Aircraft Carrier, the Columbia Class Ballistics Missile Submarine and the Next Generation Operational Control System.

“Particularly, we see a slowdown in the shipyards,” Ellen Lord, defense undersecretary for acquisition and sustainment, told reporters Monday at the Pentagon. “Aviation is the most highly impacted sector that we have. Right now there isn’t any specific COVID penalty that we see for a specific program; however, we do anticipate a three-month slowdown in terms of execution.”

Lord said DoD is now starting to look at key procurement milestones that may be impacted by the delays.

Meanwhile, DoD is just beginning to take into account the amount of money in relief funds it will have to pay out to companies unable to do government work because of the coronavirus.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2020/04/dod-expects-three-month-acquisition-delays-billions-in-payouts-to-contractors/

With billions of dollars in CARES Act funding yet to be spent and several billion more potentially in the appropriations pipeline, it’s far too early to tell how effectively the Defense Department is spending its share of the disaster funding.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act gave the Defense Department the authority to reimburse federal contractors who faced sudden expenses because of COVID-19.

The Office of Management and Budget (OMB) plans to standardize language in all government contracts with cloud vendors that would update liability terms regarding security, according to the official in charge of leading federal agencies’ move to the shared-responsibility ecosystems.

The Navy says the way it is procuring goods and services during the COVID-19 outbreak may help quicken acquisitions later on during the crisis and keep programs on target for whenever it ends.

The Defense Department will suffer serious setbacks on developing weapons and pay companies billions of dollars in relief funds as a result of COVID-19.

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