supply chain management | The Contracting Education Academy

September 30, 2020 By cs

DoD takes next step in acquisition reform, renews calls for contractor stimulus

The Defense Department just took another step toward its goal of modernizing its acquisition system.

Deputy Secretary for Defense David Norquist signed DoD Directive 5000.01 on Sept. 8, which governs the roles and responsibilities for DoD’s adaptive acquisition framework.

“That, along with 5000.02, which was already signed out, really gives us the framework for how to move forward. We have a much more flexible way of doing business now codified in policy,” Ellen Lord, undersecretary of Defense for acquisition and sustainment, said during the Sept. 9 Defense News Conference. “We’ve put in place middle tier acquisition where we got statute a couple years ago, we now have a way to put working prototypes very, very quickly downrange so that we can practice how to use these new technologies so that we can learn quickly so we can iterate quickly. That along with everything we’re doing in terms of digital engineering and software modernization is really changing how we do business.”

Lord said the coronavirus pandemic shone a spotlight on some of the vulnerabilities of the defense acquisition system, which created an impetus for DoD to work with the administration to fix fragility in the supply chain, like unmanned aerial systems, rare earth metals and aircraft propulsion. While other more typical areas of recent defense spending, like nuclear modernization or hypersonics, haven’t gotten as much attention, Lord said DoD has put out almost $1 billion using Title III of the Defense Production.

Keep reading this article at: https://federalnewsnetwork.com/defense-industry/2020/09/dod-takes-next-step-in-acquisition-reform-renews-calls-for-contractor-stimulus/

September 24, 2020 By cs

Comments on government supply chain rule push for better definitions and more time

Industry groups and other comments highlight the difficulty of complying with a provision of last year’s defense authorization act that requires the removal of products from companies including Huawei and ZTE.

The broad, ambiguous language of Congressionally-mandated rule for government contractors to remove products and services from companies that pose threats to national security is complicating implementation, according to public comments.

The comment period for the interim Federal Acquisition Rule implementing Part B of Section 889 — a provision of the 2019 National Defense Authorization Act — closed last week, and the more than 30 comments submitted raise questions related to fundamental compliance issues.

While in general, commenters agree with the rule’s intent, groups representing industry, including the National Defense Industrial Association, BSA | The Software Alliance, the Coalition for Government Procurement and the Internet Association submitted detailed letters to Regulations.gov outlining compliance challenges. Nearly all asked for extended timelines for implementation and better definitions for key terms and phrases used in the regulation.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2020/09/comments-government-supply-chain-rule-push-better-definitions-and-more-time/168460/

August 24, 2020 By cs

Number of foreign companies within Defense supply chain grew over past decade

Reliance on foreign suppliers in the defense industrial base rose — notably in packaged software and IT services — even as calls for reshoring increase, according to a new report.

Reshoring the defense supply chain may reduce national security risks, but a new report detailing a heavy dependency on goods and services from foreign countries like China shows reshoring may be easier said than done.

Researchers at Govini, a decision science company supporting the defense industry, analyzed data from over 1,000 Defense Department vendors across 100 industries to show how supply chain reliance on products from foreign countries has increased over the past decade. According to the survey, the number of Chinese suppliers in DOD’s base increased by a total of 420% since 2010.

For cyber and information technology, two statistics stick out. The share of companies based in foreign nations in the supply chain grew the most in the packaged software and IT services between 2010 and 2019. Companies based in foreign countries made up 3% of the packaged software supplier base in 2010. That number rose to 7% in 2019. The numbers are similar for IT services: Companies based in foreign countries made up 3% of the IT services supplier base in 2010 and 7% in 2019.

Keep reading this article at: https://www.defenseone.com/threats/2020/08/number-foreign-companies-within-defense-supply-chain-grew-over-past-decade-report-says/167767/

July 29, 2020 By cs

Deadline looms for contractors to ditch banned Chinese equipment

Federal contractors face a late-summer deadline to ensure they’re not using banned Chinese equipment and services to fulfill their federal contracts, a top White House federal acquisition official stressed.

Federal contractors have until Aug. 13 to comply with Part B of Section 889 of the 2019 National Defense Authorization Act, Office of Federal Procurement Policy Administrator Michael Wooten said during a July 13 Professional Services Counsel (PSC) webcast.

That provision prohibits government contractors from using technology and services tied to Chinese equipment manufacturers that have been deemed cybersecurity threats by the U.S. government. Those companies include telecommunications gear-makers Huawei and ZTE, as well as video surveillance manufacturer Hikvision.

The Trump administration has worked to push Huawei and ZTE out of U.S. federal and commercial telecommunications networks, both domestically and internationally, deeming the companies’ close relationships to the Chinese government as a virulent cybersecurity threat.

Keep reading this article at: https://fcw.com/articles/2020/07/13/rockwell-defense-contractors-huawei-ban.aspx

July 23, 2020 By cs

Cutting Chinese suppliers from government supply chains will cost billions every year

Prospective contractors are invited to comment on how much it might cost them.

**Click on image above to see Federal Register notice.**

Implementation of a rule barring federal agencies from entering into contracts with entities that use equipment from a selection of Chinese telecommunications and surveillance companies is expected to cost the government $11 billion in year one, and just over $2 billion each subsequent year, according to an action published in the Federal Register on July 14th.

The Federal Register action details an interim rule from the Department of Defense, the General Services Administration and NASA to implement the second part of section 889 of the John S. McCain National Defense Authorization Act of 2019.

Starting Aug. 13., Contracting Officers will include provisions in their solicitations that prohibit contractors from using the covered equipment and require bidders to state whether they do. Agency leaders can issue waivers in the case of emergencies, or other conditions, under the interim rule.

Covered equipment and services refer to those provided by Huawei, ZTE, Hytera Communications Corporation, Hangzhou Hikvision Digital Technology Company or Dahua Technology Company, or any subsidiary or affiliate of those entities.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2020/07/cutting-chinese-suppliers-government-supply-chains-will-cost-billions-every-year/166846/

The Defense Department just took another step toward its goal of modernizing its acquisition system.

Industry groups and other comments highlight the difficulty of complying with a provision of last year’s defense authorization act that requires the removal of products from companies including Huawei and ZTE.

Reliance on foreign suppliers in the defense industrial base rose — notably in packaged software and IT services — even as calls for reshoring increase, according to a new report.

Federal contractors face a late-summer deadline to ensure they’re not using banned Chinese equipment and services to fulfill their federal contracts, a top White House federal acquisition official stressed.

Prospective contractors are invited to comment on how much it might cost them.

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