GSA begins green efforts for federal contractors
July 31, 2010 by cs
The General Services Administration has requested federal contractors submit their greenhouse gas emissions to make the federal government and its supply chain greener.
Following the executive order signed by President Barack Obama in October 2009, GSA submitted a document to White House Council on Environmental Quality that outlined recommendations on reducing emissions in the federal government supply chain. Executive Order 13514 called on federal agencies to “establish an integrated strategy towards sustainability in the federal government and to make reduction of greenhouse gas emissions a priority for federal agencies,” according to a statement.
The report released yesterday recommends contractors disclose their emissions through fiscal 2012 to help agencies develop a plan to achieve reduction goals. GSA was recently given the green light to begin developing programs.
“Over the next two years, GSA will be surveying its suppliers and their greenhouse gas emissions, and then where practical, begin to give a preference in contract awards to companies that conduct greenhouse gas inventories,” said Steve Leeds, senior sustainability officer and senior counselor to the administrator of GSA. “We’re starting with a phased approach and an incentive-based program, by asking the vendors to voluntarily measure and report the emissions developing from their operation at a corporate level, with an eye toward eventually measuring emissions at an individual product level.”
The goal of the program, as explained by Leeds, is to get a grasp on the capacity for compliance in private businesses. Contractors will be able to submit their emission rates via online tools to further support of the government’s sustainability initiative. Leeds believes the standards for measuring the greenhouse gas emissions, once they are developed, will be incorporated into all federal contracts in the future.
“I’m reminded that in the 1970s, when the federal government determined that it would first only purchase automobiles with seatbelts, it really provided the impetus for all automobiles to have seatbelts,” Leeds said.
– Written by Molly Mulrain – ExecutiveGov.com – July 20, 2010
Existing procurements got bulk of Recovery Act contract dollars
July 30, 2010 by cs
The federal government awarded more than two-thirds of the $26 billion in Recovery Act contract obligations through acquisition vehicles in place before the stimulus bill became law, according to a new report.
Pressure to act quickly on high-priority projects drove officials toward existing contracts, the Government Accountability Office reported on July 21. Officials were not concerned that a contract had been awarded before the American Recovery and Reinvestment Act was enacted in February 2009. When the contract was originally awarded, officials said the government had met its competition requirements, GAO reported.
RELATED STORY: Administration alters reporting rules for stimulus money
As of May, the government has awarded 68 percent of the $26 billion through pre-existing contracts, and 32 percent through new contracts. Of the newly awarded contracts, 89 percent of the funds were awarded competitively. The other 11 percent of the money, awarded without competition, went to companies in small-business programs, GAO reported.
Directed by the Obama administration to spend the stimulus money quickly, program and contracting officials found programs, projects and contracts that would allow them to award the money in a short time. In talking to contracting officers at five federal agencies, GAO said the officials considered both the risks of using non-competitive contracts and the benefits of spending the money faster than going through the process of awarding a new contract.
For example, a sole-source, small-business contract took the Army Corps of Engineers roughly four months to award, while a new competitive contract would have taken more than a year, GAO reported.
The administration objects to sole-source contracts, but GAO found agencies justified their reasons for awarding a contract without competition.
In addition, GAO found that early on inspectors general dedicated more time focusing on work that they believed was of higher risk, rather than looking at contract spending, including contracts awarded without competition.
GAO said it was okay to attend to the riskier projects when agencies were under pressure to spend the money. However, GAO officials are concerned that a lot of contracts have been awarded without competition — and without audits — through the Small Business Administration’s 8(a) Business Development program without audits, according to the report.
It’s significant, GAO said, because, while the 8(a) program has safeguards, they aren’t always set up properly.
In response, Joseph Jordan, SBA’s associate administrator for government contracting, objected to GAO’s implication that the 8(a) program is more susceptible to fraud than other programs.
“Suggestions of wrong-doing without supporting evidence are detrimental to the 8(a) program and its thousands of eligible program participants,” Jordan wrote. Even so, SBA officials have worked to prevent fraud, he added.
Inspectors general from the Defense Department and NASA said they were beginning audits on Recovery Act money. NASA’s IG told GAO it intends to launch audits of the funds, which includes seven contracts that were awarded through the 8(a) program.
In addition, the Energy Department IG didn’t consider its Recovery Act contracting as a high-risk area because a significant portion of the department’s funds went out through grants, according to its response to the GAO report.
– About the Author - Matthew Weigelt is acquisition editor for Federal Computer Week. Published in Washington Technology – July 22, 2010
Air Force to host IT vendors in Montgomery, AL
July 29, 2010 by cs
“Dominance at the Speed of Need” is the theme of the Air Force Information Technology Conference (AFITC) scheduled for Aug, 30-31, 2010 in Montgomery, Alabama.
The purpose of the conference is to provide a forum for Dept. of Defense (DoD) vendors and officials to learn about the latest developments in information technology (IT) applications to support the Air Force in maintaining the most advanced fighting force in the world in air, space, and cyberspace. The theme, “Dominance at the Speed of Need,” emphasizes the need for our warfighters to change at a rapid rate and the acquisition process needing to keep pace.
This year’s events will highlight an IT Small Business Town Hall Meeting, a keynote address from Mr. John G. Caporal, Acting Director, Small Business Programs, Department of the Air Force, and an IT Small Business Match-Making Session. The Match-Making event will be by appointment only and everyone must be registered for the conference in order to participate.
If you are a small business seeking to gain knowledge about how to be better equipped to compete for federal government contracts, or you want to become a subcontractor to a large business that does business with the government, this is the conference for you!
Registration may be accomplished at http://afitc.gunter.af.mil. You may elect to be an attendee or an exhibitor. After registering, return to the home page and select the Small Business tab. Place your cursor over the Match Making Registration tab and submit your company information. Each vendor can sign up for a maximum of five sessions.
Prime contractor representatives are published on the website after each company confirms participation in the event. As additional representatives confirm and additional information is made available, the Gunter Air Force Base website is to be updated.
- Point of contact for this event is: Shalondria Thompson, Small Business Chairperson, 2010 Air Force Information Technology Conference (AFITC), Business Development Specialist (Contractor, P3S Corporation), HQ 754 ELSG/ESU, Customer Outreach; phone: 334-416-4886; email: shalondria.thompson.ctr@gunter.af.mil.
- Location Details: AFITC 2010 Small Business Event, Renaissance Montgomery Hotel & Spa, Ballroom A, 30-31 August 2010.
Here are a few tips from GTPAC. If you decide to attend this event, you’ll want to prepare. To assist you in this process, be sure to read our articles on attending a government trade show, how to prepare an “elevator speech,” and the need for a Capabilities Statement.
New report shows significant potential for renewable energy in the South
July 29, 2010 by cs
The South could generate 20-30 percent of its electricity from renewable energy sources within the next 20 years – up from less than 4 percent today — if strong federal policies are enacted, according to a report released today by researchers at the Georgia Institute of Technology and Duke University. The analysis, “Renewable Energy in the South,” finds that conventional wisdom has underestimated the available renewable resources in the region and that a federal renewable electricity standard (RES) would enable the South to capitalize on this untapped renewable energy potential.
Read the Full Report Here: http://www.spp.gatech.edu/aboutus/workingpapers/renewable-energy-in-the-south
The South lags behind all other regions in renewable electricity, obtaining 3.7 percent of its power from renewable sources, compared to 9.5 percent for the country as a whole. Only four states (Delaware, Maryland, North Carolina, and Texas) have a state-level renewable portfolio standard, while three others have voluntary renewable energy goals. The fate of renewables in the South is not only important for the region, but for the nation as a whole since, in 2008, the region accounted for 44 percent of the country’s energy consumption.
Opponents of renewable energy production claim that the South lacks the renewable energy resources to capitalize on the growing demand for clean energy. However, the report finds that there are abundant renewable energy resources available that can be tapped if supportive policies are put in place. The report shows that if a 25 percent (by 2025) federal RES is enacted, the amount of electricity supplied by power companies from renewable sources could increase more than 250 percent above the level expected in 2030 if no new federal renewables policies were enacted.
A number of other studies have shown a large potential for renewable energy in the South,” said Etan Gumerman of Duke University’s Nicholas Institute and co-lead researcher of the study. “Our study shows that significant increases can actually be achieved, particularly through supportive local or federal policies.”
The report, using a customized version of the economic modeling system used by the U.S. Energy Information Administration, finds that a federal renewable electricity standard and carbon pricing system would increase the proportion of electricity derived from renewable sources by power companies in every state, particularly in wind and biomass. By 2030, the report shows, federal carbon pricing policy would increase renewable electricity production in the South by 390 percent.
“Countries around the world are already tapping into the potential of renewable energy, and are capturing export markets and generating jobs in the process,” said Dr. Marilyn Brown of the Georgia Institute of Technology and co-lead researcher of the study. “The report demonstrates that although many states in the South are off to a slow start, renewable initiatives are now underway across the region, and the potential for expansion is promising.”
In addition, the report finds that electricity produced by end-users, such as households and businesses using small-scale solar electric and heating facilities, would also benefit from federal policies and could supply a substantial portion of the region’s renewable electricity. Under a 25 percent RES, for example, renewable electricity supplied by utilities and end-users could increase by 154 percent. Carbon pricing policy could lead to a 266 percent increase above the total level of renewable electricity expected in the absence of federal policy changes.
“In the future, households and businesses have the potential to become major suppliers of clean, renewable electricity,” added Dr. Brown. “This changes the way we need to think about the South’s renewable energy potential.”
About Dr. Marilyn Brown and Georgia Tech:
Dr. Marilyn Brown, a professor in the School of Public Policy at the Georgia Institute of Technology, is an internationally-recognized leader in the analysis and interpretation of energy futures in the United States. In 2007, Brown was a co-recipient of the Nobel Peace Prize along with the other members of the Intergovernmental Panel on Climate Change and Vice President Al Gore. Additional information about Brown and her research can be found at http://www.spp.gatech.edu/faculty/faculty/mbrown.php. Brown has been nominated to serve on the Board of the Tennessee Valley Authority and awaits confirmation.
Georgia Tech’s Ivan Allen College of Liberal Arts offers one of the world’s top public policy programs. The research-intensive and globally engaged curriculum aims to solve complex problems in the public interest related to issues of research and technology, energy and sustainability, economic development and governance. The School of Public Policy is dedicated to scholarship and learning that is reflective, effective and sustainable.
About Etan Gumerman and Duke University’s Nicholas Institute:
Etan Gumerman is a scientific engineer at the Nicholas Institute for Environmental Policy Solutions at Duke University. Prior to joining the Nicholas Institute, Gumerman was employed by Lawrence Berkeley National Lab and served as the lead modeler and analyst for the Scenarios for a Clean Energy Future Project. In this role, Gumerman coordinated the efforts of scientists at five national laboratories.
The Nicholas Institute is a nonpartisan institute founded in 2005 to help decision makers in government, the private sector, and the nonprofit community address critical environmental challenges. The Institute responds to the demand for high-quality and timely data and acts as an “honest broker” in policy debates by convening and fostering open, ongoing dialogue between stakeholders on all sides of the issues and providing policy-relevant analysis based on academic research. The Institute’s leadership and staff leverage the broad expertise of Duke University as well as public and private partners worldwide. Since its inception, the Institute has earned a distinguished reputation for its innovative approach to developing multilateral, nonpartisan, and economically viable solutions to pressing environmental challenges.
Related Links
Administration cites progress reining in procurement costs
July 28, 2010 by cs
After nearly a decade of unsustainable growth, the federal government finally has hit the brakes on contract spending, the Obama administration’s top procurement official testified on Thursday.
Between fiscal 2000 and fiscal 2008, federal contract spending increased by an annual rate of 12 percent, according to Daniel Gordon, administrator of the Office of Federal Procurement Policy at the Office of Management and Budget.
But, between fiscal 2008 and fiscal 2009 — which included more than eight months of the Obama presidency — the growth rate slowed to 4 percent, with spending increasing from $537 billion to $560 billion, Gordon told the Senate Budget Committee’s Task Force on Government Performance.
“I can’t tell you today that we have solved all of the problems. Far from it,” Gordon said. “It took years to dig the hole we are in. And, we cannot dig ourselves out of it in a few short months. But I can tell you we have made real, measurable progress.”
Gordon highlighted OMB data that shows during the first two quarters of fiscal 2010, agencies decreased their reliance on sole-source contracts, as well as cost-reimbursement and time-and-materials contracts, compared with the same period the previous year.
That data, however, covers only newly issued contracts and it does not include orders on multiple-award contracts or modifications of existing contracts, which accounted for more than half the total spending during that period.
Agencies, Gordon said, also are pooling their purchases and making better use of strategic sourcing. He cited recent blanket purchasing agreements by the General Services Administration for office supplies and the Homeland Security Department for desktop operating systems, e-mail and office automation.
OMB is working with other civilian agencies to identify opportunities for strategic sourcing, particularly in information technology and medical and surgical supply purchases, he said.
In addition, later this summer, GSA will launch a knowledge management portal where studies, market research and spending analyses connected with governmentwide and agencywide strategic sourcing initiatives will be posted.
The Defense Department, meanwhile, announced plans last month to save more than $100 billion during the next five fiscal years through more cost-effective procurements and by identifying unproductive or low value-added overhead expenses.
Shay Assad, director of defense procurement and acquisition policy, said the department also is phasing out time-and-materials contracts, increasing the participation of small businesses, and improving competitive procedures.
Defense also will scrutinize the proliferation of multiple-award indefinite quantity-indefinite delivery contracts to examine whether they have yielded adequate competition, he said. Primarily, the reform effort will look prospectively at new contracts, rather than altering existing awards. “We need to examine not only what we are acquiring, but also how we are acquiring these activities and programs,” Assad testified.
Both Assad and Gordon noted contracting reform efforts all are tied to building up the size, strength and capability of the acquisition workforce. Defense plans to add about 20,000 employees within the next five years and is currently ahead of its expected pace. To date, Assad said, the department has added about 4,800 staffers.
Obama’s fiscal 2011 budget proposal requested that Congress appropriate $158 million for the civilian agencies’ acquisition workforce. The funding, Gordon said, would enable agencies to increase the size of their acquisition staffs by 5 percent and to invest in more training and technology.
“This is a relatively small investment that will have a high return,” he noted.
– by Robert Brodsky – GovExec.com – July 15, 2010
GSA seeks better prices, easier customer interface with IT procurement
July 27, 2010 by cs
The General Services Administration expects its information technology portfolio to grow as it launches initiatives to improve pricing and customers’ experience, according to the agency’s new Federal Acquisition Service chief.
“We’re really revamping all of our systems to add value to the way we do business and our customers,” Steve Kempf, who on Tuesday was named permanent FAS commissioner, said in a recent interview with Nextgov.
Just over a year after its launch, Alliant, GSA’s $50 billion governmentwide IT contract, exceeded $1 billion in task order awards this month. Alliant replaces the ANSWER and Millennia programs, which expired in 2009, and aims to be the largest and most comprehensive vehicle for procuring IT services in the federal government. The companion $15 billion Alliant Small Business contract recently surpassed $400 million in sales.
Industry analysts have said one challenge GSA faces is declining interest in Schedule 70, on which technology equipment and services are sold. Federal agencies often are reluctant to give up control of acquisitions so important to their daily operations and historically have held on to their own procurement operations, said Warren Suss, president of Suss Consulting. There’s some question as to whether they can entrust the “keys to the kingdom” to GSA, he added.
“In the end, it’s really on GSA’s shoulders to make the business case, to make the value proposition, to demonstrate that they can operate more efficiently, more effectively, nimbly, responsively than agencies themselves,” said Suss.
Kempf said despite flat interest in Schedule 70, he still considers GSA the dominant player in the IT market, with nearly $20 billion in sales across its technology portfolio. Alliant has produced a lot of interest and competition, he added.
“There’s some forecast that IT spending will be down,” said Kempf. “It’s an opportunity for GSA to be successful, to look at things like federal strategic sourcing in helping [agencies] meet budgetary constraints.”
Other areas for growth are in GSA’s new commercial satellite communications program, a $10 billion contract to provide satellite services to civilian and defense agencies, and a blanket purchase agreement for cell phone services that meet governmentwide requirements. Kempf said GSA also is working on a number of initiatives to make it easier for customers to use its purchasing vehicles. For example, customer-facing tools such as GSA Advantage soon will look and feel more commercial with improved product descriptions, images and price comparison tools. The agency also is looking to roll out training programs to help customers use Web tools and find answers in real time.
GSA’s massive Networx program has been under scrutiny in recent months as lawmakers and industry representatives question agencies’ slow transition to the new $68 billion telecommunications contract. Delays are costing the government millions each month, critics said. According to Suss, the transition’s momentum has picked up and is getting more attention and support from stakeholders.
“They’re over the hump in terms of getting agencies’ attention, but there’s still a lot of work to be done to get there,” he said. “In one way, it’s a huge deal because it’s a huge contract, and it’s at the heart of the government’s information technology. On the other hand, it’s the third iteration of the contract and well-established from a technical point of view. Agencies have a clear idea of where they need to go.”
Agencies must transition to Networx by June 2011, when predecessor FTS 2001 expires. GSA estimates the process is nearly 60 percent complete, and Kempf said he expects to be close to meeting the transition deadline.
Women-owned businesses losing market share in terms of revenue
July 27, 2010 by cs
The number of women-owned firms may be growing, but their share of total business revenue is declining, according to a new report by the U.S. Women’s Chamber of Commerce.
The chamber’s analysis of the U.S. Census Bureau’s 2007 Survey of Business Owners found the number of women-owned businesses grew by 44 percent between 1997 and 2007, but their share of total business revenue fell from 4.4 percent to just under 4 percent. This low revenue-based market share is striking because the nation’s 7.8 million women-owned businesses account for nearly 29 percent of all businesses in the U.S.
“The media hype about the growth of women’s businesses continues to emphasize the number of women-owned firms, rather than our grossly stunted financial success,” said chamber CEO Margot Dorfman. “This report highlights the growth challenges women business owners face and the opportunity loss our country experiences as we fail to support women as entrepreneurs and business leaders.”
However, the report also indicates other types of small businesses lost revenue-based market share as revenue for publicly traded companies soared. In 2007, nearly 64 percent of all business revenue was posted by public companies, compared with 55 percent in 1997.
Access to capital, federal contracts and private-sector supply chains are the biggest challenges facing women-owned businesses, according to the chamber. The report contends the U.S. Small Business Administration fails to provide enough loans to women-owned businesses and tends to steer women into expensive credit card debt. It also thinks the SBA should “stop segregating women business owners away from the mainstream” and direct them to Small Business Development Centers, which provide counseling and training to all types of business owners, instead of specifically promoting Women’s Business Centers.
As for federal contracts, it urged the federal government to set aside contracts for women-owned businesses in certain industries as soon as possible — something Congress called for 10 years ago. Plus, it would like the government’s overall goal for contracting with women-owned businesses be increased from 5 percent of all procurement dollars to 10 percent.
For more: www.uswcc.org.
Government contractor acquisition activity picks up
July 26, 2010 by cs
After an uncertain economy and a drought in available capital curbed acquisition activity in the government contracting marketplace, analysts and companies say they now are seeing an uptick — if not dramatic change.
Take Arlington-based CACI, a major services and information technology provider in the defense and intelligence fields, which has long depended on acquisitions for expansion. According to Paul M. Cofoni, president and chief executive, about one-third of the company’s growth has generally come through acquisitions.
However, the company “took a little pause” in recent months because of instability in the capital markets.
Now, “we’ve reenergized,” Cofoni said. “We’re back at it full force.”
With $200 million in cash and about $400 million in borrowing power at the ready, CACI has several candidate companies in mind. The firm is looking for high-growth, high-margin businesses, particularly within the burgeoning cyber, energy and health-care markets.
Smaller companies, too, say they’re looking. Andover, Mass.-based information technology firm Dynamics Research — which has close to 600 employees in Washington — is also seeking fast-growing companies in emerging growth areas such as like health care and cybersecurity, said chief executive James P. Regan.
“We are seeing a definite increase in the availability of properties to be acquired,” Regan said.
Supply and demand are roughly equally matched at this point, said William F. Farmer, co-head of Lazard’s aerospace and defense group in Washington.
A potential seller is Arlington-based Homeland Security Capital — which provides technology for dealing with nuclear, environmental and disaster relief scenarios. The company announced last month that it is exploring “strategic options,” including potentially selling off two of its subsidiaries or making new acquisitions.
C. Thomas McMillen, a former congressman and the company’s chief executive, said business remains strong but that the company needs to rethink its size.
“In those instances where we compete, scale is very important,” he said.
The key to seeing more deals take place is matching buyer and seller expectations, because buyers now expect a bargain, said J. Scott Hommer III, a government contracting attorney with Venable.
“I think there’s a lot of ready, willing and able buyers out there,” he said. “What you don’t have is the sellers’ expectations kind of catching up with the buyers’ expectations.”
Some have already acted. Argon ST — which had lingered on the market for about six months — was recently snapped up by Boeing for $775 million. The purchase follows Boeing’s purchase of Digital Receiver Technology of Germantown in late 2008, and boosts Boeing’s intelligence-collecting capabilities, said Michael S. Lewis, a defense analyst with BB&T Capital Markets.
A potential factor in acquisition activity is conflict-of-interest divestitures — such as Lockheed Martin’s recent decision to divest its Enterprise Integration Group, which provided systems engineering and integration services.
The Pentagon is seeking to eliminate potential conflicts of interest within government contractors — conflicts created, for example, when the same company selected to build a system is also retained to evaluate or test the work.
Lewis said the new focus on conflicts may mean more businesses are for sale. Additionally, because large contractors are seeking to avoid new conflicts, nontraditional buyers such as private equity firms and commercial IT businesses may play a larger role in the market, he said.
While acknowledging a pickup in activity, analysts and investors alike cautioned that it will take time to see a full recovery.
“It’s not going to be flipping a switch,” Hommer said. “It’s going to take time, and by time, I don’t mean days or weeks but months or maybe yet another year [until] the sellers’ expectations line up more with the buyers’ expectations.”
– by Marjorie Censer – The Washington Post - July 12, 2010