OSDBU | The Contracting Education Academy

June 25, 2019 By AMK

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

September 25, 2018 By AMK

3 big problems continue to dog federal procurement

Congress and the executive branch have worked for years to improve the quality of and reduce costs for federal acquisition, but some problems continue to hamper many agencies, according to a Sept. 12 Government Accountability Office report.

“Acquisition reform has been on everyone’s agenda for many, many years, decades. There have been proposals in the Congress, there has been changes to the regulations. This has been a very, very active area for a long time,” said Bill Woods, director on the Contracting and National Security Acquisitions Team at GAO, in an agency podcast.

The report evaluated federal agency acquisition improvements against 89 recommendations made by the Acquisition Advisory Panel in 2007 and divided the areas of improvement into three “buckets” that represent the acquisition life cycle: requirements and definitions; competition and pricing; and contractor oversight.

“One is in the requirements, definition process of actually deciding. What is it does the agency want? What does it need, and what’s the best way of getting what we need?” said Woods.

Keep reading this article at: https://www.federaltimes.com/acquisition/2018/09/17/3-big-problems-continue-to-dog-federal-procurement/

September 13, 2018 By AMK

GAO acknowledges progress in federal acquisition by Congress and Executive branch, but says ‘challenges endure’

Congress established an Acquisition Advisory Panel to review federal acquisition laws, regulations, and policies — and identify opportunities for improvement. The Government Accountability Office (GAO) just issued an assessment of the progress made since the Panel’s 2007 report.

Here’s what GAO found:

Congress and the executive branch have taken numerous actions to address key issues the Acquisition Advisory Panel identified in its 2007 report, but these actions have not eliminated some enduring challenges. The figure below presents the key issues the Panel addressed in relation to the life cycle of a typical contract as identified by GAO:

Three of the key issues, and the corresponding challenges, align with specific phases in the contracting life cycle:

Requirements Definition: The Panel found that fully identifying requirements before a contract is awarded is key to achieving the benefits of competition. GAO has found that unrealistic requirements have contributed to poor program outcomes at the Department of Defense (DoD), and that the Army’s requirements development workforce decreased by 22 percent from 2008 to 2017.

Competition and Pricing: The Panel said that competition can help reduce prices. GAO’s work shows that competition rates have remained steady government-wide, and declined at DOD. See figure below.

GAO also found that agencies are sometimes using bridge contracts — which GAO has generally defined as either extensions to existing contracts or new short-term, sole-source contracts — to avoid a lapse in service caused by delay of a follow-on contract award. In some instances, bridge contract awards delay opportunities for competition and can place the government at risk of paying higher prices for multiple years. The figure below depicts how an Army bridge contract for computer support services planned for 12 months was extended to 42 months.

Further, GAO’s work shows that agencies have not fully embraced initiatives and techniques intended to reduce the prices they pay, including consolidated purchasing approaches and robust market research.

Contractor Oversight: The Panel raised questions about the capacity of federal agencies to oversee contractors. GAO found that agencies continue to award contracts warranting increased management attention at a steady rate, such as contracts for management support services. With contracts like those for management support services, there is an increased risk that contractors may perform tasks reserved for the government. Additionally, GAO found that heavy workloads at the Department of Veterans Affairs have made it difficult for officials who oversee contractors to ensure contractors adhere to contract terms.

Three of the key issues, and the corresponding challenges, cut across all the phases of the contracting life cycle:

Acquisition Workforce: The Panel found that the federal acquisition workforce faces workload and training challenges. GAO’s work has shown that DoD has enhanced its workforce, but some workforce gaps endure at DoD and across agencies.

Federal Procurement Data: The Panel found that the government’s primary repository for acquisition data contained some unreliable data. Also, GAO found that the system has demonstrated limitations. For example, guidance from the Office of Management Budget (OMB) required that agencies collect specific contract award data, but the system did not have the capability to do so.

Small Business Participation: The Panel found a number of challenges hindering agencies’ efforts to meet small business goals. GAO found small business participation has increased, but many agencies are not in full compliance with requirements governing Offices of Small and Disadvantaged Business Utilization (OSDBUs). For example, the directors of these offices should report directly to agency heads or their deputies, but not all agencies have established this type of direct reporting relationship.

What GAO Recommends

GAO did not make any new recommendations in its Sept. 12, 2018 assessment, but it has made numerous recommendations in the past. Federal agencies have agreed with many of GAO’s recommendations, and have implemented some of them, but not others. For example, GAO has previously made the following recommendations.

The Army should assess the resources needed for the requirements development process. The Army agreed, but it has not yet done so.

OMB should provide guidance for agencies to manage bridge contracts. OMB agreed and has drafted management guidance but has not yet finalized it.

Certain federal agencies should take steps to document how they conduct market research. The agencies agreed and did so.

The Department of Veterans Affairs should develop tools to help oversee contracts. The department agreed and did so.

DOD should have issued an updated acquisition workforce plan in fiscal year 2016. DOD agreed and issued the plan.

OMB should take steps to improve how agencies collect certain procurement data. OMB generally agreed, but has not yet addressed the recommendation.

Certain federal agencies should take steps to comply with OSDBU-related requirements. Most agencies that provided comments agreed or partially agreed. Two agencies — the National Aeronautics and Space Administration, and the U.S. Agency for International Development — have addressed the recommendations.

It its latest report, GAO reiterates its belief that all agencies should implement all of these recommendations.

See the GAO’s full report here: https://www.gao.gov/assets/700/694457.pdf

April 23, 2013 By AMK

Lawmaker wants proof agencies are complying with new small business rules

House Small Business Committee Chairman Rep. Sam Graves, R-Mo., last Tuesday (Apr. 16, 2013) stepped up pressure on agencies to comply with new rules requiring them to elevate their Small and Disadvantaged Business Utilization offices as a means for giving more businesses a leg up in competing for contracts.

In letters to the Defense Department and 34 other agencies, Graves said a recent hearing revealed that too many are ignoring new amendments to the Small Business Act enacted in January with passage of the 2013 National Defense Authorization Act. “It has come to my attention that some agencies were either unaware of recent changes . . . or had not yet implemented the changes,” Graves wrote. The requirements include new priorities in the small and disadvantaged business offices’ work, prohibitions on the offices’ leaders from holding other positions, and improvements to the reporting relationship between small business specialists and the offices.

Keep reading this article at: http://www.govexec.com/contracting/2013/04/lawmaker-wants-proof-agencies-are-complying-new-small-business-rules/62582/?oref=dropdown

February 6, 2012 By AMK

Lawmaker pushes to boost small business contracting, elevate OSDBUs

House Small Business Committee Chairman Sam Graves, R-Mo., on Tuesday (Jan. 31, 2012) introduced legislation to encourage a higher percentage of federal contracts to go to small business, along with a separate bill to elevate agency Offices of Small and Disadvantaged Business Utilization.

Graves’ GET Small Business Contracting Act would raise the small business prime contracting goal from the current 23 percent to 25 percent, while withholding bonuses from agency managers who fail to meet the goal. He estimates the 2 percent increase would bring $11 billion in new federal contracts to small businesses. The government spent about $535 billion in contracting in fiscal 2010, according to the Office of Management and Budget.

“Because the federal government spends half a trillion dollars on contracted goods and services, we owe it to the taxpayers to make sure their money is used wisely and efficiently,” Graves said in a statement. “Government contracting offers a unique opportunity to invest in small businesses while also stimulating our economy, considering small businesses create the majority of jobs — 65 percent over the last 17 years. Small businesses have proved time and time again that they can perform a service or produce goods for the government cheaper and often quicker than their larger counterparts; however, various bureaucratic impediments remain for small contractors.”

The Obama administration missed its small business contracting goal by 3 percent in 2010, according to Graves. His bill also would seek to use more small businesses as subcontractors, raising the goal from the current 35 percent of subcontracted dollars to 40 percent.

Graves is also offering a second bill, the Small Business Advocate Act, that would promote greater use of contractors, prime and sub, at each agency’s Office of Small and Disadvantaged Business Utilization.

OSDBUs were created in 1978 to reserve some federal contracts for for-profit small business concerns in which socially and economically disadvantaged individuals own at least a 51 percent interest and manage and control daily business operations. Their director’s place in the hierarchy has varied by agency.

The Graves bill would elevate those directors to senior acquisition leaders and prohibit them from holding any other position “so they can concentrate on their advocacy responsibilities,” a statement said. “This legislation makes it easier for the OSDBU to advocate for small business contracts, focus on acquisition assistance, and fight insourcing and unjustified contract bundling.”

This bill would require directors to be GS-15s or members of the Senior Executive Service and their performance reviews to be done by agency heads. “Acting as the OSDBU director,” Graves said, “is often simply another assigned duty for a senior official that lacks the authority to challenge decisions made by the chief acquisition officer or senior procurement executive.”

In April 2010, President Obama set up a task force to boost small business contracting opportunities.

The Graves bills come on a day when President Obama is releasing a package of proposed tax breaks for small businesses, including elimination of taxes on capital gains for investments in small businesses.

— by Charles S. Clark, Government Executive, January 31, 2012, at http://www.govexec.com/contracting/2012/01/lawmaker-pushes-boost-contractor-work/41045

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.

Congress and the executive branch have worked for years to improve the quality of and reduce costs for federal acquisition, but some problems continue to hamper many agencies, according to a Sept. 12 Government Accountability Office report.

Congress established an Acquisition Advisory Panel to review federal acquisition laws, regulations, and policies — and identify opportunities for improvement. The Government Accountability Office (GAO) just issued an assessment of the progress made since the Panel’s 2007 report.

What GAO Recommends

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