waste | The Contracting Education Academy

November 13, 2019 By cs

Failure is an option for DoD’s experimental agency, but how much?

Since 2015, millions of dollars have been invested in the Pentagon’s Defense Innovation Unit, the agency watched as some of its projects fell flat, and only about 23% the organization’s completed projects ended up in the hands of troops — but the thing is: DIU is completely fine with that.

DIU’s success statistics, delivered in a July report card to Congress, are the first long-term numbers to come out of the Defense Innovation Unit (formerly the Defense Innovation Unit-Experimental) since its inception.

The metrics, which also address time-to-contract and other areas, highlight a vexing dichotomy currently playing out in the Defense landscape: How can the world’s largest military field state-of-the-art technologies faster to counter China and Russia without compromising oversight and opening the door for waste?

While successful DIU experiments ended up, or will end up, as technologies that will protect service members from drones and detect cyber vulnerabilities on DoD networks, 77% of completed prototypes DIU invested in failed to make it to contract or have yet to make it to contract. That leaves millions of taxpayer dollars on the table, which can sometimes be a hard sell for lawmakers. Congress remains at least marginally skeptical of the program built to convert private cutting edge technology for military use.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2019/10/special-report-failure-is-an-option-for-dods-experimental-agency-but-how-much/

November 11, 2019 By cs

DOJ announces ‘strike force’ to combat procurement crimes

The Justice Department announced last week the creation of a new interagency partnership to combat antitrust and procurement crimes.

The Procurement Collusion Strike Force will “deter, detect, investigate, and prosecute antitrust crimes and related criminal schemes,” said Assistant Attorney General Makan Delrahim at a press conference. The strike force will use a “district-based task force organization model” to facilitate cooperation between the Justice Department’s Antitrust Division, 13 Attorneys’ Offices, FBI and inspector general offices for Defense and Justice Departments, General Services Administration and U.S. Postal Service.

“When government contractors collude with each other to rig bids for government contracts at the federal, state, or local level, it leads to artificially higher prices for those goods or services. When the government has to pay those artificially higher prices, all American taxpayers are paying for it,” said Deputy Attorney General Jeffrey Rosen at the press conference. “Strike Force will better inform federal, state, and local government procurement communities about these criminal activities and how to detect and report them.”

Keep reading this article at: https://www.govexec.com/management/2019/11/justice-department-announces-strike-force-combat-procurement-crimes/161103/

March 14, 2019 By AMK

IRS wasted $3.4 million on software it never used, watchdog says

IT management shortcomings led the IRS to waste millions of dollars on licenses and subscriptions for software agency officials never used, according to an internal watchdog.

Because it failed to follow federal acquisition requirements, the agency also deployed a software product that fell far short of its promised functionality, auditors said.

In a recent report, the Treasury Inspector General for Tax Administration found the IRS didn’t actively manage its IT assets or monitor the cost of the myriad software subscription and support packages used across the enterprise. As a result, the agency spent roughly $3.4 million between 2015 and 2017 on tools it didn’t need, auditors said.

They also found insufficient management caused the agency to lean too heavily on a separate package of software tools, which put it at risk of penalties and fines from the vendor, IBM.

Keep reading this article at: https://www.nextgov.com/it-modernization/2019/03/irs-wasted-34-million-software-it-never-used-watchdog-says/155247/

March 11, 2019 By AMK

DoD’s acquisition and contracting sees little improvement on GAO’s ‘high-risk’ list

Despite sweeping legislative and department changes over the past five years, progress on the Defense Department’s systems acquisition and contracting management remain basically stagnant on the Government Accountability Office’s 2019 High-Risk List of areas that are most vulnerable to waste, fraud and abuse.

The list, released last Wednesday, states efforts to shore up problems with DoD weapons systems acquisition remain “unchanged” since GAO’s last high-risk list in 2017. GAO made the same assessment of the Pentagon’s contract management issues, though with a few positive caveats.

The two items on the high-risk list account for almost $2 trillion in taxpayer funds — about $1.66 trillion in investments of 86 major weapons systems and $300 billion in annual contracted services for the Pentagon. Both of the items have been on GAO’s high-risk list since the early 1990s.

At the same time, GAO points out that the government’s inability to address climate change is causing national security issues and will cost DoD more money.

Keep reading this article at: https://federalnewsnetwork.com/defense-main/2019/03/dods-acquisition-and-contracting-sees-little-improvement-on-gao-high-risk-list/

January 25, 2019 By AMK

No, the Pentagon did not waste $28 billion

Last week, headlines blared with claims that the Defense Department had failed to spend $28 billion in time, forfeiting all that money back to the US Treasury.

The story said the Pentagon had “let $28 billion go to waste,” with “tens of billions of dollars unspent” as “time ran out.”

This would be an awesome and scandalous story, were it true. Fortunately, it’s not. Just about all of this $28 billion in taxpayer funds will be spent. What this story really highlights is the arcane complexity of the budget execution process at the world’s largest organization. The Pentagon receives a lot of criticism on many different topics, but this is one instance in which piling on is unwarranted.

Keep reading this article at: https://breakingdefense.com/2019/01/no-the-pentagon-did-not-waste-28-billion/

Since 2015, millions of dollars have been invested in the Pentagon’s Defense Innovation Unit, the agency watched as some of its projects fell flat, and only about 23% the organization’s completed projects ended up in the hands of troops — but the thing is: DIU is completely fine with that.

The Justice Department announced last week the creation of a new interagency partnership to combat antitrust and procurement crimes.

IT management shortcomings led the IRS to waste millions of dollars on licenses and subscriptions for software agency officials never used, according to an internal watchdog.

Last week, headlines blared with claims that the Defense Department had failed to spend $28 billion in time, forfeiting all that money back to the US Treasury.

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