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Contract Management News
2008 September
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Commentary: More Contract Specialists, Better Tools Needed
— September 8, 2008
In 1991, about 33,000 contract specialists governmentwide were responsible for about $150 billion in federal contracts. Most of the contracts they awarded were based on sealed bidding and the lowest price. Those specialists — known as 1102s — are trained to perform all aspects of contracting from the pre-award phase to contract close-out. In 1991, they were supported by a large number of contracting clerks, known as 1105s, who performed many of the administrative functions related to the various phases of the contracting process. Many clerks were being trained to become contract specialists.
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Small Business Offers Only Employment Bright Spot
— September 8, 2008
Small businesses actually added 20,000 jobs in August, even as larger companies shed more than 50,000 jobs.
The economy as a whole registered a seasonaly adjusted loss of some 33,000 jobs, according to the ADP National Employment Report. “The decline in August continues the recent trend in employment that is consistent with
an economy that is growing slowly but has not fallen into recession," according to a statement from Joel Prakken, Chairman of Macroeconomic Advisers, LLC.
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DOD Asserts More Oversight of Undefined Contracts
— September 5, 2008
Defense Department officials are requiring contracting officers to submit regular reports about contracts on which the contractor has started work even though the terms are not final.
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Defense Industrial Base Assessment of Counterfeit Electronics
— September 3, 2008
The Bureau of Industry and Security (BIS) of the Department of Commerce is conducting a defense industrial base assessment regarding the infiltration of counterfeit electronics into military and related industrial supply chains. The goal is to quantify reported counterfeits, document industry and government procurement and business practices that contribute to counterfeit product infiltration, and identify best practices employed to prevent counterfeit products from infiltrating the supply chain.
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Workforce tops new OFPP chief's priorities
— September 3, 2008
Lesley Field, who begins serving Sept. 3 as acting administrator for federal procurement policy, said intern programs are critical in attracting and keeping people in the acquisition workforce.
August
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Civilian Contractors Finding Themselves in Congressional Crosshairs
— August 22, 2008
When Democrats took control of Congress in 2006, they pledged major changes in government contracting. Mission accomplished. The pressure of congressional oversight, coupled with the upcoming presidential election and transition, has radically transformed the acquisition landscape. Several large firms have had to regroup or to leave the government marketplace.
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McCain vs. Obama: Views on Contracting
— August 22, 2008
GOP presidential nominee John McCain is a fed basher, while Democrat Barrack Obama favors federal workers over outsourcing, according to the Washington Post’s Federal Diary column.
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New Small-Business Chief Has Critics Already
— August 22, 2008
Santanu K. Baruah, a former Commerce Department official, began serving this week as acting administrator of the Small Business Administration. President Bush appointed Mr. Baruah on Aug. 15 as acting administrator under the Federal Vacancies Reform Act of 1998, which allows him to remain in the post through the end of the current administration.
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GSA Signs Agreement on Veterans' Businesses
— August 20, 2008
The General Services Administration and an organization that promotes veteran-owned businesses signed an agreement today to increase the amount of money GSA sends to service-disabled veterans, the agency said.
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Bill Would Kill Rule on Women-Owned Business
— August 18, 2008
The Senate may stop a controversial proposal from the Small Business Administration that would limit the type of set-aside contracts given to women-owned small businesses.
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CBP Works with International Entities to Promote Global Customs Security Standards and Initiatives, but Challenges Remain
— August 18, 2008
Oceangoing cargo containers play a vital role in global trade but can also pose a risk of terrorist exploitation. U.S. Customs and Border Protection (CBP), part of the Department of Homeland Security (DHS), oversees security of the supply chain—the flow of goods from manufacturer to retailer. CBP anticipates that adoption of uniform, international customs security standards could eventually lead to a system of mutual recognition whereby the customs security-related practices and programs taken by one customs administration are recognized and accepted by another administration.
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Defense Audit Agency Maps Out Response to Damaging Report
— August 15, 2008
The Defense Department's lead contracting oversight unit may have allowed internal performance metrics to compromise the quality of its audits at times, the agency's director acknowledged in a staffwide memorandum last week.
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CBO: Scale of Contract Operations in Iraq is Unprecedented
— August 13, 2008
One out of every $5 the U.S. government has spent on the war in Iraq has gone to contractors, and the ratio of contract workers to troops is higher than in any previous major armed conflict, according to a report released on Tuesday.
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Contract Management Article Correction
— August 12, 2008
In the August issue of Contract Management, in the article "Acquiring Non-Schedule Supplies or Services under GSA Schedule Orders," an incorrect dollar amount of $2,500 for the micro-purchase threshold was printed on page 33. The correct amount is $3,000. In addition, a bullet point regarding the Service Contract Act had been left out. We apologize for the error. The corrected article is now available here on our website.
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Defense Acquisitions: Zumwalt-Class Destroyer Program Emblematic of Challenges Facing Navy Shipbuilding
— August 1, 2008
The U.S. Navy is about to begin construction of the first Zumwalt-class destroyer (DDG 1000) amid considerable uncertainties and a high likelihood of cost and schedule growth. Significant cost growth and schedule delays are persistent problems that continue to compromise the Navy’s shipbuilding goals. This testimony focuses on (1) the challenges faced by the DDG 1000 program and (2) the strain such challenges portend for long term shipbuilding plans.
July
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Procurement Leaders Go Back to Basics as Administration Winds Down
— July 25, 2008
Chief procurement executives, whether they are career officials or political appointees, will have their hands full during the next few months. With the clock counting down to the presidential transition, and with it, a new set of procurement priorities, acquisition leaders have plenty they still want to achieve -- and they are going back to basics to get the job done.
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Contractors Improperly Influenced Defense Audits, GAO Finds
— July 24, 2008
Managers at a key Defense Department oversight agency threatened a senior auditor with personnel action if he did not remove negative findings from a report criticizing a large federal contractor, according to a new report published Wednesday by a government watchdog.
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"The 100 Worst Mistakes in Government Contracting" Author Speaks on Federal News Radio
— July 23, 2008
Richard Lieberman, author of "The 100 Worst Mistakes in Government Contracting," discusses the insights to his new book in an interview with Federal News Radio on July 21, 2008. Listen to the author discuss why there are times when reciting best practices and principles is not enough to drive the lesson home. Sometimes you have to look at the inverse. The book is perfect for government contractors and it examines 100 classic mistakes to avoid, drawn from every phase of the government-contract lifecycle.
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DCAA Audits: Allegations That Certain Audits at Three Locations Did Not Meet Professional Standards Were Substantiated
— July 23, 2008
The Defense Contract Audit Agency (DCAA) under the Department of Defense (DOD) Comptroller plays a critical role in contractor oversight by providing auditing, accounting, and financial advisory services in connection with DOD and other federal agency contracts and subcontracts. GAO investigated hotline complaints it received related to alleged failures to comply with GAGAS on 14 DCAA audits. DCAA did not agree with the “totality” of GAO’s findings, but it did acknowledge shortcomings with some audits and agreed to take corrective action.
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Denett: Agencies Can Compete More Contracts
— July 23, 2008
The government held competitions for 64 percent of its contracting dollars in fiscal 2007 — a stable percentage of the past three years — but the chief procurement officer said agencies can grow beyond that number.
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Professional Solutions Hosts Fourth Annual Charity Golf Tournament
— July 18, 2008
Professional Solutions, LLC, (ProSol) a service disabled veteran owned small business, is hosting their fourth annual charity golf tournament on Friday, August 15, 2008, at Fort Belvoir Golf Club. The beneficiaries of the event are the George Washington University Breast Care Center and the Injured Marine Semper Fi Fund. Last year, ProSol proudly donated $25,000 to the Injured Marine Semper Fi Fund thanks to corporate sponsors’ gifts and donations, many provided by area businesses.
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GAO Report: Rapid Acquisition of Mine Resistant Ambush Protected Vehicles
— July 17, 2008
About 75 percent of casualties in current combat operations in Iraq and Afghanistan are attributed to improvised explosive devices (IED). To mitigate the threat from these weapons, the Department of Defense (DOD) initiated the Mine Resistant Ambush Protected (MRAP) vehicle program, which uses a tailored acquisition approach to rapidly acquire and field the vehicles.
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Broadcasting to Cuba: Weaknesses in Contracting Practices Reduced Visibility into Selected Award Decisions
— July 16, 2008
The United States has long provided the Cuban people with alternative sources of news and information. As part of this effort, in December 2006 the International Broadcasting Bureau (IBB) awarded sole-source contracts to two Miami radio and television stations—Radio Mambi and TV Azteca—to provide additional broadcasting options. GAO reviewed contract files and other documentation and interviewed program managers and contracting officers to determine the process used to award the two broadcasting contracts and a nongeneralizable selection of 37 talent services contracts.
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Chapter Profile Correction - Greater Philadelphia Chapter
— July 15, 2008
In the July 2008 issue of Contract Management, in the article titled "Chapter Profile: Greater Philadelphia," we failed to identify the authors of the article--Michael W. Kott and Faye M. Fitz. The authors' biographies can be found in this corrected version of the article.
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Navy to Reserve Work for Firms in 8(a) Program
— July 15, 2008
The Navy has signed an agreement with the Small Businesses Administration to set aside services contracts for small disadvantaged firms in the 8(a) Business Development program.
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Air Force Procurement: Aerial Refueling Tanker Protest
— July 10, 2008
Review of the extensive record, including a hearing, led GAO to conclude that the Air Force had made a number of significant errors that could have affected the outcome of what was a close competition between Boeing and Northrop Grumman.
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Push Starts to Stay Contractors' Tax-Withholding Provision
— July 7, 2008
Although it does not take effect until 2011, opponents of a law requiring government agencies to withhold 3 percent of payments to private contractors and service providers are looking for a legislative vehicle to keep it at bay a while longer.
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A Knowledge-Based Funding Approach Could Improve Major Weapon System Program Outcomes
— July 3, 2008
The Department of Defense (DOD) expects the cost to develop and procure the major weapon systems in its current portfolio to total $1.6 trillion. With increased competition for funding within DOD and across the federal government, effectively managing these acquisitions is critical. Yet DOD programs too often experience poor outcomes—like increased costs and delayed fielding of needed capabilities to the warfighter.
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Deidre A. Lee Joins Compusearch Executive Team
— July 3, 2008
We are pleased to announce that Ms. Deidre (Dee) Lee, CPCM, Fellow, will join Compusearch as director of all its activities in the defense and intelligence markets. Ms. Lee will lead Compusearch’s efforts to help public sector organizations more efficiently and transparently spend, grant, and move funds in accordance with mandated business rules.
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Successful Contracting for HR Outsourcing
— July 2, 2008
More HR outsourcing contracts succeed than fail, yet success depends on the positions taken and behaviours used when contracting for these services.
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A Visible, and Needed, Workforce
— July 1, 2008
The face of government has changed for many reasons, including the technology revolution, increasingly complex missions requiring skills that are in short supply, and shifts in the global workforce. Meanwhile, as numerous studies have found, our government is trying to meet 21st-century challenges with outdated structures and mind-sets.
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Wartime Contracting Commission Members Named
— July 1, 2008
A former inspector general, a veteran contracting auditor and an ex-undersecretary of State are among a diverse group of management specialists selected to investigate billions of dollars of contract spending in Iraq and Afghanistan.
June
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Defense Production Act: Agencies Lack Policies and Guidance for Use of Key Authorities
— June 27, 2008
The Department of Defense (DOD) routinely exercises the DPA Title I priorities and allocations authority, which allows rated contracts and orders to be delivered before others, to ensure the availability of defense resources. However, civilian agencies have generally not used the Title I authority and most differ from DOD in deciding when to apply it.
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NCMA Presents Congressman Tom Davis with the Herbert Roback Memorial Award
— June 27, 2008
NCMA presented Congressman Tom Davis the Herbert Roback Memorial Award on Tuesday, June 24, 2008, during a dinner reception at Maggiano's restaurant in Tysons Corner, Virginia. NCMA Headquarters worked with the Tysons Corner chapter to plan the award ceremony, which hosted over 100 guests.
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GSA's Williams Named to Head Agency
— June 26, 2008
President Bush will nominate James A. Williams, currently the head of the Federal Acquisition Service at the General Services Administration, to be the agency's new director, the White House announced Wednesday.
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White House Denies Army's Pitch for More Brass
— June 25, 2008
The Army's march to overhaul its tarnished contracting system has been slowed by an unlikely foe: the White House.
The Office of Management and Budget, President Bush's administrative arm, has shot down a service plan to add five active-duty generals who would oversee purchasing and monitor contractor performance.
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Challenges Exist in Implementing a Mandatory Electronic Employment Verification System
— June 11, 2008
A mandatory E-Verify program would necessitate an increased capacity at both U.S. Citizenship and Immigration Services (USCIS) and SSA to accommodate the estimated 7.4 million employers in the United States. According to USCIS, as of April 2008, more than 61,000 employers have registered for E-Verify, and about half are active users.
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GSA Proposes Mentor-Protégé Program
— June 11, 2008
The General Services Administration is reviving a plan first floated five years ago to create a mentor program for agency contractors. GSA announced a proposal for the new program on Tuesday in the Federal Register, noting that the initiative is designed to promote more subcontracting opportunities for small businesses.
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E-Verify’s Reach to Extend to Federal Contractors
— June 10, 2008
Federal contractors will be required to confirm that employees are authorized to work in the United States through an electronic employment verification system, the White House announced June 9.
President Bush signed an executive order June 6 that will require contractors to check employees’ work status for all future contracts through E-Verify, an Internet-based system that uses Social Security Administration data and is operated by the Homeland Security Department. Federal departments and agencies already use E-Verify to ensure worker eligibility.
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AstraZeneca Head of Procurement Describes Service-Effect Contract
— June 9, 2008
A year ago AstraZeneca signed a ground-breaking, seven-year outsourcing contract with IBM to manage its IT. The contract was one of the first of a new breed of outsourcing contracts, specifying what IT services AstraZeneca required, rather than how it wanted those services delivered. It required a radically different approach to negotiation and management.
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House OKs Acquisition Staffing Fund
— June 5, 2008
Recognizing that mismanagement is a significant problem in government contracting, Congress has turned its attention to the acquisition workforce as a way to reduce contracting waste, fraud and abuse. Some lawmakers have proposed creating a fund that agencies could use to hire, train and retain acquisition professionals, who are in short supply.
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New Size Standards Due for Small Businesses
— June 5, 2008
The first of the redefined standards that define small businesses for federal contracting purposes may be final by the end of fiscal 2008, a senior official at the Small Business Administration said today.
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GAO Releases Congressional Testimony on Defense Acquisitions
— June 3, 2008
Defense Acquisitions: Better Weapon Program Outcomes Require Discipline, Accountability, and Fundamental Changes in the Acquisition Environment, by Katherine V. Schinasi, managing Director, Acquisition and Sourcing Management, before the Senate Committee on Armed Services.
May
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Congress Pursues Dual Paths on Contracting Oversight
— May 30, 2008
Although their goals remain relatively similar, House and Senate lawmakers appear to be following noticeably different paths toward implementing a series of much debated contracting reform bills.
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NCMA Now Offering Previously Recorded Audio Seminars at a Discount
— May 28, 2008
NCMA's Education Department is now offering select previously recorded Audio Seminars at discounted prices. The prices are great, but quantities are limited! Take a look at our Audio Seminars page for more information and to learn how to take advantage of this offer.
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TSA Contracting Exemption to End Next Month
— May 28, 2008
Next month, the Transportation Security Administration will be required to adhere to the same procurement regulations imposed on almost all other federal agencies.
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OMB Issues Guidance for Evaluating Federal Acquisition Processes
— May 23, 2008
The Office of Federal Procurement Policy issued new guidelines on Wednesday for agencies to assess their acquisition processes. Agencies currently are required to report on their procurement strengths and weaknesses, but soon will use a template provided by OFPP to ensure those assessments are comprehensive and standardized.
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Access to Contractor Misconduct Database Restricted in Senate Bill
— May 22, 2008
A bill mandating the creation of a federal contractor misconduct database is one step closer to becoming law, but a lack of support in the Senate has forced Sen. Claire McCaskill, D-Mo., its primary sponsor, to limit access only to government officials.
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Defense Authorization Bill Mandates Army Contracting Reforms
— May 20, 2008
Among the numerous contracting provisions the House Armed Services Committee included in its version of the fiscal 2009 Defense authorization bill are several that would implement recommendations made by a commission on Army procurement reform.
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HUD Repeatedly Dismissed Staff Concerns About Contracts
— May 17, 2008
Federal investigators are still sorting through HUD contract awards to friends of Secretary Alphonso Jackson, who resigned last month amid a criminal probe. But some career staff members and agency observers say problems in the agency's contracting process run much deeper than Jackson and involve officials who promoted certain companies while rebuffing concerns about their performance and qualifications.
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DOD Moves to Limit Excessive Pass-Through Costs
— May 16, 2008
An interim rule bars Defense Department contracting officers from paying excessive pass-through fees for subcontracted work that exceed the value of the prime contractors' contribution to the work.
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NCMA Habitat for Humanity Project 2008: Call for Volunteers
— May 15, 2008
NCMA is now organizing our Third Annual Habitat for Humanity Project in New Orleans, Louisiana. The dates for the project will be Tuesday, October 7, 2008 through Saturday, October 11, 2008. Our goal this year is to bring together more than 40 NCMA volunteers from around the country to take part in the challenges and rewards of helping to bring home and hope to the displaced people of St. Bernard Parish.
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Tanker Contract Likely to Fuel Long House Markup Debate
— May 15, 2008
The House Armed Services Committee expects to battle Wednesday over several amendments during its markup of the fiscal 2009 defense authorization bill, including one or more attempts to challenge the Air Force contract award to Northrop Grumman Corp. and EADS, the European consortium behind Airbus, for a fleet of aerial refueling tankers.
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FBI Partially Blames Procurement Rules for Fake IT products
— May 13, 2008
The government's entrenched policies for buying information technology is a major primary cause for many agencies installing fake Cisco network gear into their networks, which leads to the possibility of systems failing or the loss of sensitive data, according to the FBI.
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Management Score Card Showing More Top Grades
— May 13, 2008
Federal agencies are showing consistent progress in implementing President's Management Agenda, scoring among the highest grades yet on the administration's quarterly score card, the Office of Management and Budget said.
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GAO: Homeland Security Lacks Adequate Workforce for Performance-Based Acquisitions
— May 12, 2008
The Homeland Security Department is struggling to successfully execute performance-based service acquisitions, the Government Accountability Office reported on Thursday. Also Thursday, witnesses at a House hearing on the initiative said a talented and cooperative workforce is essential to carrying out the complex procurements.
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GAO: Interagency Contracting Worrisome
— May 12, 2008
The State Department’s methods for monitoring interagency contracts are inadequate, and the department should develop methods to more reliably track its use of such contracting and better identify who is in charge of overseeing those agreements, according to government auditors.
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Many Contract Officers Quitting
— May 12, 2008
The government’s contracting work force is in turmoil. About one in eight people changed jobs, changed agencies, retired or left government last year, according to a new study. And about a third of those left government before they were eligible to retire.
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Panel Takes Up Price Reduction Clause
— May 8, 2008
One important step to improving the General Services Administration's multiple award schedule contracts would be to reconsider use of the price reduction clause, according to contracting experts who spoke before a newly convened advisory panel May 5.
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Procurement Chief Named
— May 8, 2008
Gov. Arnold Schwarzenegger tapped a former Levi Strauss and Co. executive as the state's new procurement chief, the Department of General Services announced Wednesday, May 7.
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Acquisition Workforce Inches Up in Fiscal 2007
— May 6, 2008
The size of the federal acquisition workforce continues to rise despite widespread concern over employment gaps and impending retirement waves, according to an annual report from the Federal Acquisition Institute.
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In Memoriam–Pauline Tate-Floyd
— May 6, 2008
NCMA is sad to announce that Ms. Pauline Tate-Floyd, a past president of the Pentagon Chapter, passed away on March 3, 2008.
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Charlie Williams Selected to Take Over as Director of DCMA
— May 5, 2008
Charlie Williams was selected to take over as director of DCMA when Keith Ernst retires on May 6. A Change of Command ceremony was arranged on May 6, at which time Keith Ernst would relinquish his command and retire at the same time. Charlie Williams will be on board full time at DCMA no later than May 26, 2008.
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Claude Bolton Becomes Defense Acquisition University Executive-In-Residence
— May 5, 2008
The Honorable Claude M. Bolton, Jr. became the Executive-In-Residence for the Defense Acquisition University (DAU) on January 3, 2008. In this position, Mr. Bolton supports the DAU president, faculty, and students with strategic planning, course development, and mentoring. Mr. Bolton’s primary focus is assisting the DAU president achieve the Congressional direction to recruit, retain, train, and educate the DOD acquisition workforce.
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In Memoriam—Joyce Detki
— May 5, 2008
It is with great regret that NCMA announces the passing of Joyce Detki, beloved member of the Anaheim Area Chapter, who passed away on March 31, 2008. She has been characterized as the “first lady of the Anaheim Chapter,” even though her support for NCMA went much further.
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OFPP's Burton to Retire in July
— May 2, 2008
Robert Burton, deputy administrator of the Office of Federal Procurement Policy, announced April 9, 2008, that he plans to retire in July.
April
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House Passes Three Bills on Contracting
— April 28, 2008
The House passed three contracting reform bills on April 23 by voice vote. The bills would impose new regulations and restrictions on contractors.
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Senators Seek Deeper Air Force Investigation
— April 28, 2008
The Senate Armed Services Committee has asked the Defense Department's inspector general to review the role of senior Air Force officials in a $50 million contract, seeking further investigation into possible criminal conduct, ethical violations, and failures of leadership.
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Contractors Are Here to Stay
— April 23, 2008
When presidential candidate Sen. Hillary Clinton (D-N.Y.) declared in 2007 that she would eliminate 500,000 federal contractors if elected president, some policy experts said she couldn’t do it. One of those experts was Steven Schooner, senior associate dean of academic affairs and associate professor of law at George Washington University.
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In Memoriam—Norman L. Rappaport
— April 22, 2008
It is with great sadness that we announce the passing of Norman L. Rappaport, 82, who passed away March 16, 2008 from congestive heart failure. Norm was a cherished NCMA member whose career in government service spanned more than 41 years.
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Bill Would Boost U.S. Power to Prosecute War Fraud
— April 21, 2008
The U.S. government would have greater power to prosecute cases of fraud in contracts for the wars in Iraq and Afghanistan under a measure introduced in Congress on Friday, April 18, 2008.
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Bush Nominates SBA Chief to Head HUD
— April 21, 2008
President Bush today nominated Steve Preston, administrator of the Small Business Administration, to head the Housing and Urban Development Department.
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ETNCMA Gives Scholarships
— April 21, 2008
The East Tennessee Chapter of the National Contract Management Association will award three scholarships in the fall semester of 2008 — a $1 000 scholarship for an entering college freshman; a $2 000 scholarship for a current college student; and a third scholarship of $500 to be awarded in either category, says OakRidger.com.
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World Congress 2008 Podcasts
— April 14, 2008
Hear the sounds of World Congress 2008! Tune in to our podcasts for speaker highlights, exhibit hall interviews, and more.
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GSA Now Says Resellers Not Affected by IBM Suspension
— April 4, 2008
The General Services Administration released a statement retracting prior assertions that the IBM suspension from new federal contracts stemming from an action taken by the Environmental Protection Agency would extend to the sales of IBM products by resellers.
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Much-Derided Overseas Contracting Loophole to be Closed
— April 4, 2008
A so-called "mystery loophole" exempting companies overseas from a proposed rule requiring U.S. contractors to report fraud is neither mysterious nor likely to become final, according to some administration officials.
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Lawmakers Push DoD, Army on Contracting
— April 3, 2008
Pentagon and U.S. Army leaders are considering more changes to war-zone contracting requirements as part of an ongoing, broader, joint-service contracting overhaul, military leaders told lawmakers at an April 2 hearing before the U.S. Senate Armed Services Subcommittee on Readiness and Management Support.
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IBM Suspended From New Federal Contracts
— April 1, 2008
IBM and its subsidiaries are suspended from receiving new federal contracts, certain subcontracts and some types of federal assistance and benefits, due to an action taken by the Environmental Protection Agency that extends governmentwide, according to federal documents.
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In Memoriam-Frances Emily Watkins Hiestand
— April 1, 2008
NCMA is sad to announce the death of Frances Emily Watkins Hiestand, 86, a former NCMA executive director who passed away February 27, 2008, in Bethesda, Maryland, where she had lived since 1963.
March
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Multiple-Award Contract Spending On the Rise, Research Firm Says
— March 31, 2008
Federal spending on multiple-award task-order contract vehicles exceeded $21 billion in fiscal 2007, a sizable increase from 2006, a recent research firm analysis shows. Reston, Va.-based INPUT found that agencies spent 39 percent more through task order contract vehicles in fiscal 2007 than the previous year. The more than $6 billion increase brings the amount of money flowing through these types of contracts to more than 30 percent of federal technology spending.
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In Memoriam-Robert G. Fryling, Fellow
— March 28, 2008
It is with great regret that NCMA announces the passing of one of its cherished members, Robert G. Fryling, 64. Bob passed away on Easter Sunday, March 23, 2008. Bob was a 25-year member of NCMA and a Fellow. He was the current chapter president of the Greater Philadelphia Chapter and had been so for the past 10 years.
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OMB Announces New Cap on Executive Compensation Costs in Federal Contracts
— March 28, 2008
The ceiling on executive compensation costs under government contracts is $14,284 higher in fiscal 2008 than in fiscal 2007, according to an administration memo. The Office of Management and Budget's Office of Federal Procurement Policy announced that $612,196 is the maximum amount a company can charge the government under cost reimbursement contracts to compensate an executive. Last year's amount was $597,912.
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Pentagon Blurred Line Between Contractors, Feds: GAO
— March 28, 2008
The Defense Department relies excessively on a growing band of private contract specialists to assist with its acquisitions, blurring the line between federal employees and contractors and opening the door for serious conflicts of interest, according to a new report by the Government Accountability Office.
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Contract Award Protests Charging Conflicts of Interest On the Rise
— March 24, 2008
Agencies are relying more on outside contractors to evaluate bids for contract awards, and with that comes a growing number of protests from losing bidders who claim the contractors have conflicts of interest and are steering awards away from competitors, according to the Government Accountability Office.
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House GOP Eager to Strip Debarment Provision from Contracting Bill
— March 24, 2008
House Republicans are hoping to strip a controversial provision from a Democratic procurement oversight bill that could allow large federal contractors to be targeted for suspension or debarment based on the actions of a select few employees, according to a congressional aide who specializes in contracting measures.
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NASPO Brief: Responding to an Aging and Changing Workforce
— March 24, 2008
The National Association of State Procurement Officers ("NASPO") has just released an issue brief entitled "Responding to an Aging and Changing Workforce: Attracting, Retaining and Developing New Procurement Professionals'. It can be found on the "Publications" page of the NASPO Web site (http://www.naspo.org/whitepapers/).
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Government Reform Panel Passes Contractor Database Bill
— March 17, 2008
A bill to set up a public database on federal contractor performance and misconduct won approval Thursday from the House Oversight and Government Reform Committee despite Republican concerns the measure could allow unfair attacks on contractors as well as end up barring large companies from receiving government contracts.
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Contracting Command Stands up at Belvoir
— March 14, 2008
The U.S. Army Materiel Command under Gen. Benjamin S. Griffin stands up the Army Contracting Command (provisional) at Fort Belvoir, Virginia, under the leadership of ACC Executive Director Jeffrey P. Parsons. The new command will provide global contracting capability in support of warfighter needs across the full spectrum of military operations.
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Contractors Are Doing Core Acquisition Jobs, Defense Official Says
— March 13, 2008
Defense contractors are performing fundamental government functions that should be confined exclusively to federal employees, the Pentagon's top procurement policy official testified. Roughly 5 percent of the Defense Department's acquisition workforce consists of contractors, a number of whom provide administrative support, Shay Assad, director of Defense procurement and acquisition policy told the House Armed Service Subcommittee on Readiness.
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Panel Questions Cost of Contractors in War Zones
— March 13, 2008
Army Secretary Pete Geren disclosed Wednesday that there are 196,000 defense contractors in Iraq and Afghanistan, a larger number than the 181,000 U.S. military forces there. The figure appeared to be the largest reported to date and prompted House Defense Appropriations Subcommittee Chairman John Murtha, D-Pa., to demand a detailed accounting of what they are doing and how much it is costing.
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Paradigm Group Goes Global With Green Procurement Strategy
— March 13, 2008
Harry Brix thinks green is a very "in" color. "More and more companies are taking steps to become green," says Brix, director of procurement for Paradigm Group in Syosset, New York. Paradigm is a developer and distributor of environmentally responsible janitorial and sanitary products and outsources its manufacturing to a number of contractors around the world.
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Silly Season Hits Contract Management Group
— March 13, 2008
Professor Steven Kelman, Weatherhead Professor of Public Management at Harvard University's John F. Kennedy School of Government, blogs about his reaction to an NCMA article on the state of federal procurement culture: "I was surprised and saddened to see... that more than 10 senior contracting officials in the government had declined positions on the NCMA Board of Advisors "upon the 'advice' or counsel of ethics advisors, despite the fact that no regulation specifically prohibits such participation" (and such officials have served on the board of advisors many times in the past)."
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Subcommittee Moves Contractor Accountability Measures
— March 13, 2008
The House Oversight and Government Reform Government Management Subcommittee approved three bills Tuesday aimed at increasing federal contractor accountability that are likely to be passed by the full committee. In unanimous votes, the panel passed measures requiring creation of a database on federal contractor performance and misconduct, barring contractors with significant tax debts from receiving large government contracts and grants, and requiring companies that rely on federal contracts to disclose the names and salaries of their top officers.
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Timken Executes Indirect Procurement Mega-Project
— March 13, 2008
Creating a centralized indirect procurement department in a Fortune 500 manufacturing company is no small task. Neither is creating a global commodity management initiative at a globally expanding firm. Even more formidable is the decision to outsource noncore indirect purchasing activities.
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Bill Requires Port Openness
— March 12, 2008
The Washington state Legislature has approved a bill aimed at making port contracting processes more transparent and accountable.
The bill is a response to the recent Port of Seattle construction audit, which revealed widespread problems with the way the port awarded and administered its contracts.
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Boeing Slams KC-X Procurement Process
— March 12, 2008
Boeing claimed that it made a better air tanker offer to the U.S. Air Force than EADS and Northrop Grumman. The U.S. Air Force decided last month in its KC-X air tanker replacement program to buy the KC-45A air tanker made by Northrop Grumman and the European Aeronautics Defence and Space Co. instead of Boeing's KC-767.
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Bush Opposes World Bank Contracting Plan
— March 12, 2008
The Bush administration, together with U.S. and foreign business organizations, challenged a World Bank proposal that would allow developing countries to use their own contracting rules for bank-funded projects.
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Panel Questions E-procurement's Effects on Small Businesses
— March 10, 2008
Several emerging acquisition techniques, touted by the Bush administration for their ability to procure goods and services more strategically and efficiently, frequently leave out small businesses, a key congressional Democrat suggested.
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Alliant Protest Upheld, Contract Placed on Hold
— March 7, 2008
A federal judge this week ruled in favor of a protest filed by eight companies that submitted unsuccessful bids for the General Services Administration's Alliant contract. In sustaining part of the protest, the judge acknowledged that GSA had been "arbitrary and capricious" in awarding the contract and prohibited the agency and its contractors from performing any work related to Alliant.
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Panel Witnesses Press for GAO Audits of Intelligence Agencies
— March 3, 2008
Government and public policy experts have said legislation is badly needed that would affirm the right of GAO to audit programs and financial activities of the U.S. intelligence agencies, especially because their scope and complexity have grown enormously since the Sept. 11, 2001, terrorist attacks.
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Watchdog Recommends That EPA Limit Cost-Plus-Award-Fee Contracts
— March 3, 2008
The Environmental Protection Agency might have wasted millions on excessive cost-plus-award-fee contracts, in part because of a lax and subjective rating system in which nearly all contractors were graded highly, according to a report issued this week by the agency’s inspector general.
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Army Announces New Contracting Command
— March 2, 2008
The Army will set up an expeditionary contracting command that will consist of nearly 1,000 military and 1,000 civilian personnel to support war fighters, officials announced today.
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FAR Council Issues Final Security Configuration Rule
— March 2, 2008
If they already haven’t been doing it, now contracting officers must include the requirements to use the Federal Desktop Core Configuration for Microsoft Windows XP and Vista in all applicable procurements.
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Northrop Grumman to Build Tankers for Air Force
— March 2, 2008
The Pentagon today chose Northrop Grumman and the makers of Airbus airliners to build a new fleet of refueling tankers for the Air Force, a $40 billion deal that is one of the Defense Department’s most important, expensive, and controversial.
February
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Officials debate disclosure of executives' pay
— February 27, 2008
Officials are at odds over requiring some government contractors to release their executives’ salaries.
According to the proposed Government Contractor Accountability Act, executives of companies that receive more than 80 percent of their annual gross revenue from federal contracts and have contracts worth more than $5 million in any fiscal year would have to submit their salaries to a public database.
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Army’s Technology Needs Translate Into Busy Procurement Year
— February 22, 2008
Army contracting officials are planning for a busy summer. Not only will the Army Small Computer Program (ASCP) change its name, but the service’s Program Executive Office, Enterprise Information Systems has several multiple-award contracts in the pipeline to be awarded this year.
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GSA Drives Green IT Procurements
— February 21, 2008
With no clear metrics for defining an information technology solution as “green,” contractors will be expected to consider environmental impact when bidding on federal contracts, said a top IT official with the General Services Administration, who added that the Federal Acquisition Regulation soon will include language that addresses agencies’ need to purchase energy-efficient technology.
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Mid-Year Leadership Conferences a Big Success
— February 19, 2008
Las Vegas, San Antonio, and Daytona Beach are beautiful cities and many tourists are drawn to visit them. However, over 170 NCMA members representing 50 chapters were drawn to these towns for a different reason—they spent a weekend to expand their NCMA horizons.
January
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New Direction Charted for Wartime Contracting
— January 31, 2008
he cost of the war in Iraq has ballooned, in part, because of the dearth of trained acquisition professionals assigned to the theater and the failure of federal agencies to establish a uniform set of procurement policy guidelines, a pair of government watchdogs testified.
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Great Neck UFSD to Improve Procurement Procedures
— January 30, 2008
After an audit by NY the State Comptroller?s office found that the Great Neck Union Free School District awarded $1.3 million in contracts to five vendors without adhering to competitive bidding requirements, school district officials agreed to improve its procurement procedures when awarding future contracts.
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US Cannot Manage Contractors In Wars, Officials Testify on Hill
— January 30, 2008
With even more U.S. contractors now in Iraq and Afghanistan than U.S. military personnel, government officials told Congress yesterday that the Bush administration is not prepared to manage the contractors? critical involvement in the American war effort.
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Inquiry Grows in Contract Scandal
— January 28, 2008
Law-enforcement authorities are widening their probe into a $130 million federal contracting scam that has led to convictions against a General Services Administration procurement official and two former executives of a prominent security company.
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Group to Rank Contractors on Ethics Programs
— January 25, 2008
The Ethisphere Institute in New York, a business think tank, is preparing to publish its first annual ranking of contractors' ethics and compliance programs.
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Watchdog: Halt Arms-Related China Sales
— January 25, 2008
An American group called on Washington Thursday to suspend a new program to approve Chinese buyers of technology with possible military uses, saying two of the five companies cleared so far pose a risk of weapons proliferation.
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A Toast to Lee's Service
— January 24, 2008
Earlier this month, Deidre Lee announced that she will retire in March after 30 years of government service.
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Defense and the Future of Contracting
— January 24, 2008
The Defense Authorization bill approved by the House on January 15, 2008, includes several sections that could have a substantial impact on federal contracting practices.
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New Olympic Procurement Site Praised
— January 24, 2008
A new initiative aimed at improving procurement processes for contracts relating to the London 2012 Olympics has been welcomed by the Federation of Small Businesses (FSB).
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Wagner: The Cost Analysis Muddle
— January 24, 2008
Some see benefit/cost analysis as a tool for making better decisions; however, many people see it as a tool to justify things they already want to do.
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GSA Watchdog Finds Himself on Other Side of Misconduct Investigation
— January 23, 2008
During 2007, the GSA?s IG has made headlines by raising allegations against agency administrator Lurita Doan. However, a former high-ranking IG official now alleges that it is the inspector general and his top deputies that have abused their authority and misused agency resources in retaliation against whistleblowers and other career employees who disagreed with their decisions.
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SBA Defends Contracting Plan
— January 23, 2008
A controversial program allowing federal agencies to set aside contracts for some women-owned small firms will help the government meet its annual contracting goals for the first time in over a decade, the head of the Small Business Administration said this week.
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A Mission to Rebuild Reputations
— January 22, 2008
The pledges made by the military and one of its biggest contractors were unusually earnest. The Air Force and Boeing would be open about their relationships, overhaul their ethics reviews and tighten their internal controls. And they promised to give taxpayers the best deals possible.
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Kansas City Audit Blisters Buying Process
— January 22, 2008
The Kansas City auditor issued a blistering report today over the contracting process the city used in selecting a vendor for its copiers and document management program.
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Procurement and Sourcing News: Understanding the Sourcing Grid
— January 22, 2008
The simplest tools and frameworks are often the best, and for procurement professionals, the ?Sourcing Grid? offered by Dr. Ed Marien, professor emeritus at the University of Wisconsin, offers an excellent model for thinking about the right approach to procuring specific goods and services.
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Cost in Translation
— January 21, 2008
In theory, a manufacturer?s finance and procurement departments should be natural allies, sharing many of the same goals and challenges and working in an aligned, coordinated fashion. But, according to a recent survey, less than 20% of chief financial officers consider the work of chief procurement officers (CPOs) and their staff as having a very positive impact on competitiveness.
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Pentagon Takes Another Hit for Interagency Contracting Practices
— January 21, 2008
Government auditors have taken another swipe at the Defense Department?s interagency contracting procedures, concluding that many of the Pentagon?s purchases through the Veterans Affairs Department in fiscal 2006 ?were either hastily planned or improperly administered.?
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Air Force Delays Changes in Procurement Operations
— January 18, 2008
Tom Wells, chief of contracting for the U.S. Air Force Materiel Command (AFMC), told local business leaders in Albuquerque Friday that the Air Force will delay plans to consolidate its procurement operations.
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Executives Hail Procurement Changes in Maryland
— January 18, 2008
Executives with small companies in Montgomery County, Maryland, are ecstatic about changes unveiled this week that officials say will make the county?s procurement process more accessible.
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Pentagon Expected to Offer Few Changes in Fiscal 2009 Budget Plan
— January 18, 2008
The Pentagon?s fiscal 2009 budget request marks Defense Secretary Robert Gates? first real chance to set military spending priorities, but analysts do not expect to see a major shake-up in the department?s longstanding plans for high-priced weapons systems.
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Navigating Contract Work
— January 14, 2008
Classes help small businesses learn how to work with feds?Through federal government contracting, many small companies in the area are experiencing noticeable business growth.
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What?s Left for Government to Do?
— January 10, 2008
Outsourcing champion Stephen Goldsmith examines the question of whether governments really have ?inherent? or ?core? functions.
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Navigating Contract Work
— January 8, 2008
Classes help small businesses learn how to work with feds?Through federal government contracting, many small companies in the area are experiencing noticeable business growth.
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Daley Appoints New Cabinet Member
— January 7, 2008
The man who delivered record levels of minority participation on the $254 million Kennedy-King College project has landed on one of City Hall?s hottest seats?chief procurement officer.
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Regional Centers Made for Contracting Duties
— January 7, 2008
The latest wave of Air Force consolidation and downsizing is the merger of contracting operations. With the start of 2008, the Air Force opened a regional acquisition center at Randolph Air Force Base, Texas, to handle many contracting duties for bases in Texas, New Mexico and Arizona.
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Air Force Contacting?Class Deviation from FAR Parts 45 and 52
— January 4, 2008
OSD has issued a Class Deviation to FAR Parts 45 and 52. This class deviation deletes the definition of ?plant equipment? which now is simply considered personal property. This class deviation is mandatory on all solicitations issued after January 1, 2008, where ?real property? is addressed.
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Air Force Instructed to Justify Boeing Deal
— January 4, 2008
The U.S. Air Force must provide a better explanation for why it gave the Boeing Company a $1.1 billion contract to maintain KC-135 tanker aircraft, the Government Accountability Office said, upholding part of a protest from rival bidder Pemco Aviation Group Inc.
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China Applies to Join WTO Procurement Agreement
— January 4, 2008
Finance Minister for China Xie Xuren signed a written application on behalf of China for joining the Agreement on Government Procurement (GPA). The signing in Beijing marked that the country had officially started the process of joining the GPA, according to an announcement posted on the Ministry of Finance Web site.
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Government Auditing Standards Implementation Tool Issued
— January 4, 2008
The U.S. Government Accountability Office has issued a guidance document, Government Auditing Standards: Implementation Tool?Professional Requirements Tool for Use in Implementing Requirements Identified by *Must* and *Should* in the July 2007 Revision of Government Auditing Standards.
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Shifting From Tanks to Technology
— January 4, 2008
For government contractors, 2007 wasn?t pretty: They had to contend with tighter budgets and increased oversight from a new Democratic congress, as well as polarizing controversies surrounding the conduct of contractors in Iraq.
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South Florida RTA Receives Procurement Honors
— January 4, 2008
The National Purchasing Institute recently presented the South Florida Regional Transportation Authority (SFRTA) with the 2007 Achievement in Excellence in Procurement Award, which recognizes organizations that obtain a high score on innovation, professionalism, productivity, and leadership in public procurement measures.
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Women-Owned Small Business Federal Contract Assistance Procedures
— January 2, 2008
The U.S. Small Business Administration (SBA) proposes to amend its regulations governing small business contracting procedures to add a new part that would implement procedures to increase procurement opportunities for women-owned small business concerns, as authorized under the Small Business Act.
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Government Revises Procurement Procedures
— January 1, 2008
Jamaica?Government is revising measures governing public sector procurement procedures, to allow specific entities to negotiate and award contracts above the existing $4 million limit, without having to secure approval from the National Contracts Commission or Cabinet.
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Privatization Could Be the Answer for Pacific Grove
— January 1, 2008
?It is better for the public to procure at the market whatever the market can supply; because there it is by competition kept up in its quality, and reduced to its minimum price.? That quote is not taken from the late economist Milton Friedman, but from one of America?s founding fathers, Thomas Jefferson.
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SBA?s 8(a) Connects Minority-owned Business
— January 1, 2008
Harry Barnes was able to get some help when he launched his Browning, Montana based company, Barnes Construction Co. A member of the Blackfeet Tribe, Barnes registered with the Small Business Administration?s 8(a) program, which connects minority-owned businesses with federal contractors.
2007 December
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Coast Guard Acquisition Chief: Deepwater Is Back on Course
— December 28, 2007
Eight months after taking control of its troubled fleetwide modernization program from Integrated Coast Guard Systems, the Coast Guard is claiming significant progress in putting the $24 billion acquisition program, known as Deepwater, back on course.
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Congress Quietly Revises ?Buy America? Rule for Defense Materials
— December 28, 2007
Much to the surprise of the Defense Department?s legion of industry suppliers, Congress last week approved legislation that would give them some relief from heartburn-inducing restrictions regulating the amount of domestic metal content in the U.S. military?s weapons systems.
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Bill Would End TSA?s Exemptions to Contracting Rules
— December 27, 2007
The Transportation Security Administration may soon have to play by the same contracting rules as everyone else. A provision in the omnibus spending bill that passed the Senate on Tuesday ends six years of special treatment the agency has enjoyed since it was created after the September 11 terrorist attacks.
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"City Complied With Procurement Rules"
— December 24, 2007
Philippines: Secretary to the mayor Goldwyn Nifras yesterday said the Bacolod City government has strictly complied with the requirement of the law in the procurement of equipment.
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Brussels Sprouts Green Procurement Rules
— December 24, 2007
Belgium?The European Council yesterday laid down new regulations for implementing strict energy efficiency rules for government authorities EU-wide.
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Fewer Than 20% of CFOs View Procurement Affecting Competitiveness
— December 24, 2007
The communication gap between the procurement and finance departments has emerged as the single most serious challenge in procurement?s ability to deliver savings to the enterprise highlighted the report based on a survey of over 500 finance professionals.
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Chinese Government Boosts Online Purchasing
— December 19, 2007
The volume of purchases made online by State ministries and commissions is expected to grow significantly from the end of this month, with the further development of a Web-based bidding system, a senior official has said.
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Contractor Trade Groups to Merge
— December 19, 2007
The two largest trade groups representing federal contractors have joined forces, creating a powerful new advocacy organization for companies that work for the federal government.
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Korean Procurement System Praised
— December 19, 2007
The Korean e-procurement system has been hailed as one of the best in the world by the United Nations and is a revolution in the industry, one expert has said.
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