Senate Armed Services Committee | The Contracting Education Academy

November 21, 2019 By cs

DoD’s second financial audit uncovers 1,300 new deficiencies

The results of the Pentagon’s second-ever full financial audit are a decidedly mixed bag: Although officials were able to point to some areas of significant progress in managing the Defense Department’s finances over the past year, overall, auditors are uncovering new problems faster than the department is fixing them.

At this time a year ago, auditors had made 2,410 separate findings and recommendations during the department’s first-ever financial audit. In the 2019 financial report DoD issued Friday evening, officials said 556 of those had been resolved. But besides the more than 1,800 problems the department is still wrestling with from 2018, auditors made more than 1,300 new findings during the course of the latest audit.

In addition, the audit turned up a larger number of material weaknesses this year.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2019/11/dods-second-financial-audit-uncovers-1300-new-deficiencies/

April 19, 2019 By AMK

Senate Armed Services Subcommittee on Cybersecurity holds hearing to discuss responsibilities of the industrial base

On March 26, 2019, the Senate Armed Services’ Subcommittee on Cybersecurity held a hearing to receive testimony assessing how the Department of Defense’s (DoD) cybersecurity policies and regulations have affected the Defense Industrial Base (DIB).

To gain a better understanding of the DIB’s cybersecurity concerns, the Subcommittee invited William LaPlante, Senior Vice President and General Manager of MITRE’s National Security Sector; John Luddy, Vice President For National Security Policy at the Aerospace Industries Association; Christopher Peters, Chief Executive Officer of the Lucrum Group; and Michael MacKay, the Chief Technology Officer of Progeny Systems Corporation.

In their opening remarks, the Chairman of the Subcommittee, Senator Mike Rounds (R-SD), and Ranking Member, Senator Joe Manchin (D-WV), acknowledged industry concerns about the DoD’s lack of clarity and disparate implementation of cybersecurity regulations, such as guidance relating to DFARS 252.204-7012 (DFARS Cyber Rule or Rule) and National Institute of Standards and Technology (NIST) Special Publication (SP) 800-171.

Senator Rounds stated that he “expects [DoD] to come up with measured policies to make improvements in [cybersecurity]” and he “hope[s] DoD takes seriously the concerns of the DIB.” He further noted that DoD “cannot simply apply increasingly stringent cybersecurity requirements on its contractors” and that “doing so without subsidy or assistance is unlikely to particularly improve cybersecurity [for] the DIB” and would likely drive the most innovative small businesses out of the supply chain. Senator Rounds called for putting a program in place to ensure the best possible protections for contractors regardless of size and referred to the “Achilles heel” of this issue as the desire to use a large number of small contractors while still needing to protect sensitive government information. Later in the hearing, Senator Manchin expressed great concern over the cyber incidents experienced by DoD contractors and urged the witnesses to “tell [the Subcommittee] what you need . . . [the Subcommittee] is here to fix it and you’re here to tell us what’s broken.”

Keep reading this article at: https://www.insidegovernmentcontracts.com/2019/03/senate-armed-services-subcommittee-on-cybersecurity-holds-hearing-to-discuss-the-responsibilities-of-the-defense-industrial-base/

March 26, 2019 By AMK

Reject Section 809 Panel’s acquisition reforms, federal workers urge Congress

Federal workers told Congress last week that defense acquisition reform proposals billed as cutting red tape for the Pentagon to buy trailblazing commercially available items would “result in large unnecessary costs,” and they are urging lawmakers to reject them.

The opposition by the American Federation of Government Employees, which counts 300,000 Pentagon employees in its ranks, to recommendations from the congressionally mandated Section 809 Panel means lawmakers will have multiple arguments to chew on as they decide which of the panel’s many reform proposals to include in the annual defense policy bill. The Section 809 Panel’s two-year effort yielded a 2,000-page report that was finalized in January.

AFGE’s national president, J. David Cox Sr., argued in a six-page letter to the House and Senate Armed Services committees dated March 15 that the panel’s proposed “dynamic marketplace framework” and other recommendations would line the pockets of defense contractors and only appear as well-reasoned reforms and streamlining of regulations.

“Nothing could be further from the truth,” Cox said in the letter. “This would, while increasing contracting profits, predictably decrease funds that otherwise could have been targeted toward compelling needs such as military readiness, support to our uniformed volunteers and their families, and the replacement of aging war-fighting equipment.”

Cox argued the panel hadn’t made the operational case for the proposal and that buying commercial might thwart the military’s interoperability goals and introduce more cyber vulnerabilities. He said the panel had been made up of former industry and procurement officials who were “biased solely to give expanding procurement opportunities to the private sector” and lacked representation from the “total force management communities.”

Keep reading this article at: https://www.defensenews.com/congress/2019/03/19/reject-defense-reforms-federal-workers-urge-congress

February 28, 2019 By AMK

Expectations following the Section 809 Panel’s 3rd volume of acquisition policy reforms

The Section 809 Panel recently concluded its monumental analysis of defense acquisition law and regulations and released its third volume of recommended changes. The Panel’s work stands out from previous acquisition reform efforts with the appendices of detailed legislative and regulatory changes that accompany the commissioners’ analysis and recommendations.

Given the scope of the Panel’s work, few believe that Congress or the Department of Defense (DoD) will — or even could — simply adopt the recommendations in full. Legislative bandwidth for additional acquisition reform is finite, and some of the Panel’s recommendations will prompt robust debate. In this post, we analyze some of the recommendations that government contractors should follow most closely. We highlight key issues and address the political dynamics involved in enacting them.

Background

The Section 809 Panel, established by Congress in Section 809 of the FY2017 National Defense Authorization Act (“NDAA”) to address issues with Defense acquisition policies, recently released the third and final volume of its report. Volume III contains 58 recommendations for how to reform the way DoD purchases commercial products, manages acquisition programs, trains its acquisition workforce, adjudicates contract disputes, and communicates with industry, among other issues. On February 13, Covington and the National Defense Industrial Association convened and hosted an Industry Day, during which members of the Panel and leading acquisitions experts discussed the findings.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2019/02/final-report-expectations-following-section-809-panels-third-volume-acquisition-policy-reforms/

February 18, 2019 By AMK

Section 809 Panel issues summary report of 98 recommendations

Congress, through the 2016 National Defense Authorization Act (NDAA), established the Section 809 Panel to address fundamental problems with how the Defense Department acquires goods and services to support its warfighters.

Starting in 2008, whenever new legislation or regulation debuted that affected government contracting, it was written on a band-aid and stuck to a golf ball. The resulting softball-size set of rules was the focus of the Section 809 Panel.

The Section 809 Panel was charged with reviewing the acquisition regulations and statutes applicable to DoD with a view toward streamlining and improving the efficiency and effectiveness of the defense acquisition process.

Congress expected the Panel to make recommendations for the amendment or repeal of regulations and statutes. In May 2017, the Panel issued an interim report advocating in broad strokes for a host of improvements to the acquisition system to better streamline the process and increase industry offerings to the government. Next, in January 2018, the Panel issued the first it what would become a three volume report.

In the first volume, the Panel focused on developing what it called a new “dynamic marketplace framework” to respond to the Panel’s research which showed that the current acquisition process is an “obstacle to DoD’s ability to access a marketplace that has moved far beyond the traditional defense industrial base of the Cold War era.”

In its second volume, issued in June 2018, the Panel focused its attention on improving DoD’s existing “over-managed system” to more readily meet warfighter needs. The report identified improvements needed in the acquisition workforce, source selection, cost accounting, and contracting for services.

The third volume of analysis and recommendations was released last month (January 2019). It contained 58 recommendations (and associated sub-recommendations) which added to the 40 previous recommendations (and sub-recommendations) contained in volumes one and two.

The Panel’s latest work product was issued on February 14, 2019. It is a summary report that breaks-out all 98 recommendations into four categories:

Leverage the Dynamic Marketplace
Allocate Resources Effectively
Enable the Workforce
Simplify Acquisition

The Section 809 Panel’s summary report can be downloaded at: https://section809panel.org/wp-content/uploads/2019/02/Sec809Panel_Roadmap_2019-02-14_web.pdf

On March 26, 2019, the Senate Armed Services’ Subcommittee on Cybersecurity held a hearing to receive testimony assessing how the Department of Defense’s (DoD) cybersecurity policies and regulations have affected the Defense Industrial Base (DIB).

Federal workers told Congress last week that defense acquisition reform proposals billed as cutting red tape for the Pentagon to buy trailblazing commercially available items would “result in large unnecessary costs,” and they are urging lawmakers to reject them.

Background

Congress, through the 2016 National Defense Authorization Act (NDAA), established the Section 809 Panel to address fundamental problems with how the Defense Department acquires goods and services to support its warfighters.

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