February 28, 2013 by cs
The U.S. Defense Department will slow payments to prime contractors in the coming week in an attempt to increase its on-hand cash as defense spending cuts loom.
Pentagon officials said changing these payment processes combined with other initiatives will add about $1 billion, or a few days worth, of available cash within working capital spending accounts. DoD will begin notifying contractors of these payment changes in the coming days.
The Pentagon is facing a $46 billion reduction to its 2013 budget between March and September should across-the-board defense spending cuts, known as sequestration, go into effect.
Also complicating matters is that DoD is operating under a continuing resolution, which freezes spending at 2012 budget levels, creating an $11 billion shortfall from planned 2013 spending. The continuing resolution also keeps funds aligned in the same accounts as 2012, meaning new programs cannot start and ones that have been terminated are still receiving money.
February 27, 2013 by cs
The 2013 National Defense Authorization Act included several provisions related to small businesses, which include expanded opportunities as well as potentially harsher penalties for failure to follow regulations.
Although other agencies have created similar programs, the Small Business Administration (SBA) mentor-protégé program provides firms of all sizes with a number of benefits. The new legislation helps small businesses that are part of this program and subcontractors to large firms.
The current arrangement is, however, limited to businesses that are accepted into the 8(a) program — a subset of small business set-asides that are limited to firms which are owned by economically or socially disadvantaged individuals who go through an SBA certification process.
Keep reading this article at: http://www.nationaldefensemagazine.org/archive/2013/march/Pages/NewDefenseLegislationaMixedBagforSmallBusiness.aspx
February 15, 2013 by cs
A major revision in the U.S. Small Business Administration’s Surety Bond Guarantee (SBG) Program more than triples the eligible contract amount, from $2 million to $6.5 million, the Agency will guarantee on surety bonds for both public and private contracts. The higher surety bond guarantee limits are expected to help construction and service sector small businesses gain greater access to private and public contracts and secure larger contracts vital to small business growth.
“These new contract ceilings are one more way we can help small businesses, particularly in the construction and service sectors, compete for and win critical contracting opportunities that help them grow their businesses and create jobs,” SBA Administrator Karen Mills said. “Additionally, these changes, which are enthusiastically supported across the surety industry and small business community, will help spur economic growth and recovery in areas that have been hard hit by disasters, bringing jobs and economic activity to regions at a time when it is needed most.”
The revisions are a result of the Fiscal Year 2013 National Defense Authorization Act and are expected to bolster participation by surety bond agents and brokers and their surety companies in SBA’s SBG Program.
The changes also allow SBA to guarantee bonds for government contracts valued at up to $10 million if a contracting officer of a federal agency certifies that the guarantee is necessary for the small business to obtain bonding, and it is in the best interests of the government.
SBA partners with the surety industry to help small businesses that would otherwise be unable to obtain bonding in the traditional commercial marketplace. Under the partnership, SBA provides a guarantee to the participating surety company of between 70 and 90 percent of the bond amount if a contractor defaults or fails to perform.
SBA assistance in locating a participating surety company or agent, and completing application forms, is available online. For more information on SBA’s Surety Bond Guarantee Program, including Surety Office contacts, go online to: http://www.sba.gov/category/navigation-structure/loans-grants/bonds/surety-bonds or call 1-800-U-ASK-SBA.
February 14, 2013 by cs
Karen Mills, head of the Small Business Administration, told agency staff Monday she is stepping down after four years at the helm.
Mills will continue to lead the agency until her successor is named, according to a notice posted on SBA’s web site.
She said small businesses have won more than $286.3 million in federal contracts over the last three years of reporting, $32 billion more than the previous three years.
The agency also supported more than $106 billion in loans to more than 193,000 small businesses and entrepreneurs, including two record years of delivering more than $30 billion annually in loan guarantees, she said.
SBA brought more than 1,000 community banks into SBA lending and secured $20 billion commitment from 13 banks to increase their small business lending over three years, Mills said.
February 13, 2013 by cs
Starting in May 2013, The Contracting Education Academy at Georgia Tech will offer a new course focusing on the Fundamentals of Cost & Price Analysis in government contracting.
This comprehensive, two-week course begins with an in-depth review of the market research process, and provides instruction to help students understand and analyze contractor pricing strategies.
Attendees will learn to accomplish cost-volume-profit analysis, calculate contribution margin estimates, and develop cost estimating relationships in order to accomplish an effective price analysis pursuant to FAR Subpart 15.4.
After learning the basic elements of price and cost analysis, students will build and defend a pre-negotiation objective, including a minimum and maximum pricing objective with a weighted guidelines assessment. After successfully defending their pricing objectives, the students will practice face-to-face negotiations.
This course is targeted toward new hires to the contracting career field. For government contractors, this course also provides valuable insights into the government contracting decision-making process.
Student performance is assessed by graded exams on math fundamentals and applied course material as well as an exercise for student participation and completion of negotiations.
CON 170 – Fundamentals of Cost & Price Analyis is Defense Acquisition University-equivalent training that satisfies the FAC-C and DAWIA certification programs.
For more information or to register, please visit: http://www.pe.gatech.edu/courses/con-170-fundamentals-cost-and-price-analysis
February 11, 2013 by cs
The Department of Defense (DoD) issued a memorandum on February 7, 2013 entitled “Private Sector Notification Requirements in Support of In-sourcing Actions.”
The memorandum provides implementing direction on the notification of private sector providers (contractors) when making a determination to in-source a contracted service for civilian or military performance.
This guidance can be found at: Memorandum – Private Sector Notification Requirements in Support of In-sourcing Actions (29 January 2013)
January 31, 2013 by cs
Consulting firm Booz Allen Hamilton reported a 3.5 percent decrease in revenues in the third quarter of its 2013 fiscal year, citing lower demand and challenging market conditions for government contractors.
The company reported revenues of $1.39 billion in the quarter ending Dec. 31, 2012, down from $1.44 billion during the same period in the previous year. Net income for the quarter was $56.2 million, down from $62.8 million the previous year. The company’s fiscal year begins in April and runs through March.
Booz Allen Hamilton was focused on increasing productivity in the “uncertain federal budget environment,” said Chairman, CEO and President Ralph W. Shrader. “At every level in our company, we are making changes to ensure our cost competitiveness to win and perform work,” Shrader said in a statement.
January 30, 2013 by cs
The 2013 edition of Braddock’s Procurement Opportunities Guide, An Entrepreneur’s Guide to Selling to Governments and Corporations, is now available to GTPAC clients at no charge!
Braddock’s Procurement Opportunities Guide is a primer designed to help small business owners and decision makers understand the government procurement and private sector procurement spaces. The Guide provides an overview of government and corporate markets with an emphasis on who buys and how buying decisions are made. The Guide also presents “next step” resources for federal and state governments and the private sector.
Topics covered by the Guide include:
- Selling to the federal government/state governments
- Selling to large corporations
- Selling to foreign governments and international organizations
- “Green” procurement
- Special resources for Women-, Minority, and Veteran-owned businesses
- A glossary of procurement related terms, a procurement preparation checklist, information about teaming agreements and joint ventures, and more.
Braddock’s Procurement Opportunities Guide is published and copyrighted by Braddock Communications, Inc. This special PDF edition of Braddock’s Procurement Opportunities Guide is available at no charge to you thanks to the generous support of Microsoft Corporation.
Download the Guide here: https://netforum.avectra.com/eWeb/DynamicPage.aspx?Site=APTAC&WebCode=PUBPOG
January 29, 2013 by cs
The Georgia Tech Procurement Assistance Center provides help to businesses located in Georgia. But what if your business is loacted in another state — is there help available for you, too?
The answer is yes! There are what are known as Procurement Technical Assistance Centers (PTACs) located in all 50 states, and each one is in business to provide assistance to businesses on how to identify, compete for, and win government contracts.
You can find the complete list of PTACs nationwide at http://www.aptac-us.org/new/Govt_Contracting/find.php. On this web site, just select a state or click on the map to find complete details on the PTAC nearest you.