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GAO says DoD’s fraud assessment efforts should include examination of contractor ownership

Some companies doing business with the Defense Department have opaque ownership structures that may conceal who owns, controls, or benefits from the company.
This GAO illustration depicts how DoD’s use of an ineligible foreign manufacturer — that illegally exported sensitive military data and provided defective and nonconforming parts — led to the grounding of at least 47 U.S. fighter aircraft.

The Government Accountability Office (GAO) recently  identified fraud and national security risks to DoD from opaque ownership such as ineligible contractors receiving contracts and foreign firms receiving sensitive information through U.S.-based companies.

These risks, identified through GAO’s review of 32 adjudicated cases, include price inflation through multiple companies owned by the same entity to falsely create the appearance of competition, contractors receiving contracts they were not eligible to receive, and a foreign manufacturer receiving sensitive information or producing faulty equipment through a U.S.-based company.

For example, one case involved an ineligible foreign manufacturer that illegally exported sensitive military data and provided defective and nonconforming parts that led to the grounding of at least 47 fighter aircraft.

The GAO reports that DoD has taken some steps that could address some of the risks related to contractor ownership in the procurement process but has not yet assessed these risks across the department.  DoD, in coordination with other agencies, revised the Federal Acquisition Regulation (FAR) in 2014 to require contractors to self-report some ownership information.  In addition, DoD has taken steps to identify and use ownership information — for example, as part of its supply-chain risk analysis when acquiring critical components. DoD has also begun a department-wide fraud risk management program but, according to GAO, it has neither assessed risks of contractor ownership across the department nor identified risks posed by contractor ownership as a specific area for assessment.

GAO contends that assessing risks arising from contractor ownership would allow DoD to take a strategic approach to identifying and managing these risks, make informed decisions on how to best use its resources, and evaluate its existing control activities to ensure they effectively respond to these risks.

Keep reading this GAO report summary at: https://www.gao.gov/products/GAO-20-106#summary

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Supply chain security requires acquisition reform, security experts say

To secure the government’s IT ecosystem, agencies must better understand their tech, the vendors who built it, and those companies’ suppliers.

The government can make significant progress in securing its IT supply chain by following a few basic procurement practices, but most agencies have yet to adopt them, according to federal security experts.

While government leaders have recently given a lot of attention to the supply chain security threats posed by foreign vendors, officials must devote equal energy to reforming their acquisition policies so they put those warnings to good use, experts said. Those efforts require an in-depth understanding of both the government’s IT infrastructure and the countless firms in its vendor pool, they said, but today that remains a challenge for most agencies.

“Supply chain [security] is where we were with cyber[security] maybe 15, 20 years ago,” Michele Iversen, director of risk assessment and operational integration at the Defense Department, said during a panel at the recent Fifth Domain’s CyberCon event. “We really don’t really have the visibility that we need to know where the threats are and what’s actually happening.”

Keep reading this article at: https://www.nextgov.com/cybersecurity/2019/11/supply-chain-security-requires-acquisition-reform-security-experts-say/161251/

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For DoD, innovation isn’t the problem — so what is?

Three officials from varying military offices focused on innovation asserted that the department’s research and development game is strong, it’s the follow-through that causes problems.

The Defense Department doesn’t have an innovation problem, according to three top officials in charge of leading innovation efforts. The military is very good at coming up with new technologies; the problem comes when services try to adopt those new ideas.

The department has a long history of innovating, according to Steven Walker, director of the Defense Advanced Research Projects Agency, or DARPA, which 50 years ago created the networking protocols that would later become the internet.

“The country is innovative,” he said during a panel Wednesday at the 2019 Defense News Conference. “It’s the application of some of that innovation that we struggle with.”

Keep reading this article at: https://www.nextgov.com/cio-briefing/2019/09/dod-innovation-isnt-problem-so-what/159670/

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5 challenges for government adoption of AI

From transportation solutions to video-streaming applications, artificial intelligence (AI) permeates almost every aspect of our lives.  This includes government, where AI is increasingly making an impact.

Consider the two examples below:

  • Emma chatbot: U.S. Citizenship and Immigration Services receives a considerable amount of service requests daily. In response, a chatbot named Emma was deployed to address immigration questions. Emma, which can operate in both English and Spanish, handles more than a million immigration queries a month.
  • Firebird framework: Co-developed by Georgia Tech and the Atlanta Fire Rescue Department, Firebird helps the City of Atlanta prioritize buildings for inspection according to the building’s risk of fire.

Widespread adoption of AI has been slower in government than in the private sector.  Given the magnitude of the impact that AI could have on public entities, it is important to understand the roadblocks that stand in the way of systemic government adoption of AI.

Keep reading this article at: https://www.weforum.org/agenda/2019/08/artificial-intelligence-government-public-sector/

 

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We’ve admired the federal acquisition problem for too long

Agencies must inculcate cultures of experimentation and learning if the U.S. is to prevail economically and militarily.

On a recent trip to Tampa, I asked a consultant on my team supporting U.S. Special Operations Command (SOCOM) Acquisition Technology & Logistics what accounts for the Command’s acquisition success. “It’s a mindset thing,” she replied.

Later that day, as I continued my visit to SOCOM’s contracting activity, I happened upon the essentials of that mindset. They were captured in an inscription painted on the wall in a heavily traveled hallway. It said:

“We never stop …
We never stop learning …
We never stop iterating …
We never stop experimenting …”

That mindset at SOCOM drives a culture born and sustained from the intensity of the mission and the close relationships, in proximity and bond of purpose, between special operators and the acquirers who support them. The tooth and the tail meld. The mindset is shared by all members of the team. It is expected of everyone. It pushes teams to find the best solutions at the speed of relevance.

Keep reading this article at: https://www.govexec.com/management/2019/07/viewpoint-weve-admired-federal-acquisition-problem-too-long/158719/

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