Lawmaker pushes to boost small business contract work
February 3, 2012 by cs
House Small Business Committee Chairman Sam Graves, R-Mo., on Tuesday (Jan. 31, 2012) introduced legislation to encourage a higher percentage of federal contracts to go to small business, along with a separate bill to elevate agency Offices of Small and Disadvantaged Business Utilization.
Graves’ GET Small Business Contracting Act would raise the small business prime contracting goal from the current 23 percent to 25 percent, while withholding bonuses from agency managers who fail to meet the goal. He estimates the 2 percent increase would bring $11 billion in new federal contracts to small businesses. The government spent about $535 billion in contracting in fiscal 2010, according to the Office of Management and Budget.
“Because the federal government spends half a trillion dollars on contracted goods and services, we owe it to the taxpayers to make sure their money is used wisely and efficiently,” Graves said in a statement. “Government contracting offers a unique opportunity to invest in small businesses while also stimulating our economy, considering small businesses create the majority of jobs — 65 percent over the last 17 years. Small businesses have proved time and time again that they can perform a service or produce goods for the government cheaper and often quicker than their larger counterparts; however, various bureaucratic impediments remain for small contractors.”
The Obama administration missed its small business contracting goal by 3 percent in 2010, according to Graves. His bill also would seek to use more small businesses as subcontractors, raising the goal from the current 35 percent of subcontracted dollars to 40 percent.
Graves is also offering a second bill, the Small Business Advocate Act, that would promote greater use of contractors, prime and sub, at each agency’s Office of Small and Disadvantaged Business Utilization.
OSDBUs were created in 1978 to reserve some federal contracts for for-profit small business concerns in which socially and economically disadvantaged individuals own at least a 51 percent interest and manage and control daily business operations. Their director’s place in the hierarchy has varied by agency.
The Graves bill would elevate those directors to senior acquisition leaders and prohibit them from holding any other position “so they can concentrate on their advocacy responsibilities,” a statement said. “This legislation makes it easier for the OSDBU to advocate for small business contracts, focus on acquisition assistance, and fight insourcing and unjustified contract bundling.”
This bill would require directors to be GS-15s or members of the Senior Executive Service and their performance reviews to be done by agency heads. “Acting as the OSDBU director,” Graves said, “is often simply another assigned duty for a senior official that lacks the authority to challenge decisions made by the chief acquisition officer or senior procurement executive.”
In April 2010, President Obama set up a task force to boost small business contracting opportunities.
The Graves bills come on a day when President Obama is releasing a package of proposed tax breaks for small businesses, including elimination of taxes on capital gains for investments in small businesses.
– by Charles S. Clark, Government Executive, January 31, 2012, at http://www.govexec.com/contracting/2012/01/lawmaker-pushes-boost-contractor-work/41045
DHS going to paperless bids
February 2, 2012 by cs
Contractors who provide services to the Department of Homeland Security will soon be able to submit bids electronically, Federal Times
reports.
Rafael Borras, DHS’ management undersecretary, said Thursday the current submission process will be reformed so companies can focus on the bid and save money on paper costs.
At a DHS industry day in Washington, Borras said he directed officials to create web-based portals for contractors to submit bids. According to Federal Times, companies have said requirements are often unclear and they do not have enough time to ask questions before responding to a request for proposals.
Stan Soloway, president of the Professional Services Council, said requirements often need clarification and can be translated incorrectly when procurement officers write them in a contract, according to Federal Times.
Borras said DHS will hold forums for companies to ask questions on upcoming projects before DHS issues a request for proposals.
– reprinted from Executive Gov on Jan. 30, 2012 at http://www.executivegov.com/2012/01/dhs-going-paperless-for-contract-bids/
Budget preview hits Defense contractors on weapons and management
January 31, 2012 by cs
Defense budget cuts previewed Thursday, Jan. 26, 2011 would affect contractors in two ways: in the coming alterations to major weapons systems and the intensified search for greater efficiencies in Pentagon management.
Defense Secretary Leon Panetta planned to retire aging C5A and C130 transport aircraft while preserving adequate airlift capability. He would trim six tactical air squadrons from the current lineup of 60, and the Navy would retire seven older cruisers and two amphibious ships early. He would delay the next generation of ballistic missile submarines by two years, and he would “make adjustments” to the long-controversial Joint Strike Fighter aircraft, “slowing procurement to complete more testing and to develop changes before we buy in great quantities,” he said.
Programs left largely intact, he said, would be the Navy’s carrier air wings, the next generation of bombers and the aerial refueling tanker.
In a move likely to have the most direct effect on the acquisition community, Panetta said he would look to save $60 billion over five years by “improving business practices across the department.” That would include “more aggressive and competitive contacting practices and reductions in contract services.”
Further savings might be found, according to a Pentagon fact sheet, in better use of information technology, better use of business and enterprise systems, streamlined staff, limitations on official travel, improved inventory management and deferral of some military construction.
Asked whether such efforts in the past have proved fruitful, Panetta said his predecessor, Robert Gates, “had made some progress with regard to going after duplication, overhead and waste, and tightening up on systems. This is a very big bureaucracy,” Panetta said.
He emphasized that a key element of the guidance released earlier this month is “protecting key investments to retain a decisive technological edge,” which includes scientific programs in such areas as cyberwarfare, unmanned aircraft and homeland missiles. That means “maintaining the vitality of a healthy industrial base,” he added, “and avoiding imposing unacceptable risks on our critical suppliers.”
None of the actions comes as a surprise, said Stan Soloway, president and chief executive officer of the Professional Services Council, a contractors trade group. “They’ve long been signaling a need to drive more efficiency into the system, and you can only take so much out of each area,” he said. “The force structure reductions are going to happen, but it will take a while to achieve savings.”
He said people may look more carefully at the proposed new round of BRAC cuts. “We know it requires an up-front investment and takes several years to realize the savings, so it’s not impactful in the near term,” he said.
Marion C. Blakey, president and CEO of Aerospace Industries Association, asked how the Defense cuts will affect national security. “These cuts will have real consequences on our military and industrial base,” Blakey said.
– by Charles S. Clark – cclark@govexec.com – January 26, 2012 – http://www.govexec.com/story_page.cfm?articleid=49871&dcn=e_gvet
Army contracting scandal nets guilty plea
January 30, 2012 by cs
A former Army Corps of Engineers employee has pleaded guilty to charges of bribery and conspiracy in one of the most brazen corruption schemes in federal contracting, according to court documents.
As part of the plea agreement, Michael Alexander, a former program manager at the Army Corps, has agreed to plead guilty to bribery and conspiracy to launder money from the government, according to records filed Jan. 24.
The three others indicted in the case, Kerry Khan, another former Army Corps program manager, Lee Khan, his son, and Harold Babb, formerly the director of contracts at Eyak Technology, have pleaded not guilty in the case. They were arrested and arraigned Oct. 4.
Two officials with an EyakTek subcontractor—Nova Datacom—have already pleaded guilty, according to the Associated Press.
The indictment alleges bribery, conspiracy and unlawful kickbacks valued at $20 million dollars. The two Army Corps employees allegedly steered a $780
million contract to a government contractor. They are accused of conspiring to hide the money through a series of financial transactions on the Army Corps’
Technology for Infrastructure, Geospatial, and Environmental Requirements (TIGER) contract.
When announcing the indictment in October, U.S. Attorney Ronald C. Machen Jr. described the alleged activity as “one of the most brazen corruption schemes in the history of federal contracting.”
About the Author:
Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Jan. 26,
2012 at http://washingtontechnology.com/articles/2012/01/26/army–corps-engineers-employee-guilty.aspx?s=wtdaily_270112.
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Congress could turn heat up on small-biz goals
January 27, 2012 by cs
Under a new bill, a department that misses a set goal to contract with small businesses could lose 10 percent of its budget as a penalty.
Rep. Bill Owens (D-N.Y.) introduced the Small Business Growth and Federal Accountability Act (H.R. 3779) Jan. 18, saying the government’s annual 23-percent small-business contracting goal is regularly ignored by agencies.
He said his bill would “ensure that Washington lives up to its promise to foster an environment of success for small businesses.”
Owens, a member of the Small Business Committee, said federal agencies typically fail to meet their small-business contracting goals and they currently face no penalties for the shortfalls.
Under his bill, if an agency misses the set small-business contracting goal, their budget would decrease by 10 percent in the following fiscal year, with that percentage of funds going to pay down national debt.
“It is critical that federal agencies be held accountable,” Owens said.
The bill also would offer agencies more authority to give “preference” to small companies when awarding contracts. The term “preference” is not defined in the bill.
The bill has been sent to the Small Business Committee for consideration.
It is true that the government struggles to meet its annual 23-percent contracting goal. In the most recent scorecard from the Small Business Administration, the government reached 22.7 percent in fiscal 2010.
That year, agencies awarded a total of nearly $100 billion in contracts to small businesses. However, it was an increase in prime contract dollars going to small businesses for the second year following four years of decline.
SBA gave the government a B on the scorecard for its efforts in contracting with specific types of small businesses, such as those owned by a service-disabled veteran or located in an economically depressed area.
Owens’ bill could have several repercussions though.
In a post on the Government Contracts Legal Forum blog, Tiffany Wynn, an associate at the Crowell and Moring law firm, said agencies may decide to reduce their contracting goals to avoid the 10-percent penalty.
As a result of the bill, officials would have to weigh the penalties for missing the small-business goal against awarding a contract to a large company if the agency could save money.
Wynn also questioned whether this legislation would lead to penalties on companies that don’t meet their own annual small business subcontracting goals.
About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Jan. 25, 2012 at http://washingtontechnology.com/articles/2012/01/25/small-business-goal-reduced-budget-penalty.aspx?s=wtdaily_260112.
White House to launch online resource for small businesses
January 23, 2012 by cs
The White House will be unveiling a new website that will act as one-stop virtual shop to provide information and resources for small businesses and help owners succeed in their entrepreneurial endeavors.
Federal CIO Steven VanRoekel made the announcement Jan. 13 when delivering a speech about federal mobility at a luncheon hosted by the Association for Federal Information Resources Management.
BusinessUSA.gov, which VanRoekel said will launch in “a few weeks,” pools information and services from the government into one integrated network for U.S. business owners and entrepreneurs.
The main focus of the website is to help U.S. business succeed and grow, VanRoekel said. The website will provide entrepreneurs with relevant information from one consolidated source instead of having them navigate through several different options, he said.
About the Author: Camille Tuutti is a staff writer covering the federal workforce for Federal Computer Week. This article appeared Jan. 13, 2012 at http://washingtontechnology.com/articles/2012/01/13/white-house-to-launch-online-resource-for-small-businesses.aspx?s=wtdaily_170112
SBA’s elevation to Cabinet-level is a symbolic move, experts say
January 20, 2012 by cs
President Obama’s announcement Friday that he was “elevating the Small
Business Administration to a Cabinet-level agency” was a largely symbolic
gesture, government scholars say.
“The president has the ability to designate his Cabinet and the SBA will be
now part of his Cabinet,” Federal Chief Performance Officer Jeffrey Zients
reiterated during the White House press briefing, after Obama’s remarks.
There is a distinction to be made, however, between the president inviting
the head of an agency to his Cabinet, as Obama will do with SBA Administrator
Karen Mills, and elevating the entire agency to “Cabinet-level status,”
according to Paul Light, Paulette Goddard Professor of Public Service at New
York University.
Light described Cabinet-level status as “a formal designation that only
Congress can make by giving the individual and the agency a particular level in
the executive pay structure.” He explained that Mills’ future attendance at
Cabinet meetings is purely symbolic and will in no way affect her pay grade
unless Congress passes additional legislation.
“He’s basically saying, ‘I’m going to call this person a BFF . . . and I’m
going to invite this person to our clubhouse for our quarterly Cabinet
meetings,’ ” Light said, comparing the process to the ceremonial act of
knighthood.
Don Kettl, dean of the University of Maryland School of Public Policy, also
sees the act as mostly symbolic.
“Whether an agency is Cabinet rank or not, in terms of getting the job done,
doesn’t really matter a whole lot,” Kettl said. “It has much more to do with
political symbolism.”
SBA has been on and off the presidential guest list for nearly two decades.
President Clinton first extended an invitation to the agency head to join his
Cabinet in 1994, when, according to Light, he also misused the legislative term
“elevate.” President Bush rescinded the Cabinet invitation after he took
office.
In 1988, Congress elevated the Veteran Affairs Department to Cabinet-level
status. At the time, President George H.W. Bush remarked, “There is only one
place for the veterans of America: in the Cabinet room, at the table with the
president of the United States of America.”
VA’s promotion may have been a mixed blessing: “They got the name change,
they got the accoutrements of Cabinet status, the limousine,” Light said. But
the department couldn’t get additional employees or funding for new signs,
thanks to provisions in the elevation legislation that prohibited such
expenditures.
Light said in the grand scheme of things, federal agencies are “probably
better off” not receiving Cabinet-level status. “That table’s not very important
anymore — we don’t have Cabinet government as presidents once imagined,” he
said.
SBA’s seat at the table is likely temporary. The president’s full
reorganization plan, which must be approved by Congress, would roll SBA and five
other trade-related entities into one, still-unnamed agency.
– by Andrew Lapin – Government Executive – January 13, 2012 at http://www.govexec.com/story_page.cfm?articleid=49775&dcn=e_gvet
Public release of contractor data delayed
January 18, 2012 by cs
Contractors can still challenge information tjat goes into the Federal Awardee Performance and Integrity System, but they have just a two-week window before the information becomes public.
The new provision takes affect Jan. 17, 2012. The start date was missing when the final rule was published Jan. 3.
Any information that agencies enter into database from Jan. 17 onward will be subject to a two-week delay before it is transferred to the publicly available part of FAPIIS. Past performance information won’t be published at all. Contractors will receive notice when new information about their company goes into FAPIIS, and they will have 7 days to point out information that should be exempt under the Freedom of Information Act.
In the new Federal Register notice, officials wrote that the delay until Jan. 17 will give agencies time to complete necessary system changes to support the two-week waiting period before contractors’ information goes live.
The current system is designed to automatically transfer information to the publicly available part of FAPIIS. Until officials make the change, companies would not have an opportunity to request withholding the information, the notice states.
FAPIIS is a one-stop website for contracting officers and federal employees to look at the history of companies’ work with the federal government. It includes data from the Performance Information Retrieval System, as well as information from other databases, including the Excluded Parties List System, which cites companies that are suspended or debarred from federal contracting.
The final rule gives companies seven days to find any information that should not be disclosed because it should be considered exempt. In such a case, officials will remove the information from FAPIIS to resolve the issue.
If the government official does not remove the item, it will be automatically released to the public website within 14 days after beginning entered into FAPIIS, according to the notice.
About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Federal Computer Week. This article appeared Jan. 11, 2012 at http://washingtontechnology.com/articles/2012/01/10/fapiis-contractor-information.aspx?s=wtdaily_120112.
Defense technology to grow despite Pentagon budget cuts
January 17, 2012 by cs
As the Defense Department slashes its budget by at least $487 billion in 10 years, technology investment is one of the few areas that will continue to grow, according to a new military strategy that President Obama and Pentagon officials released Thursday.
The increased spending will focus on cyberspace, intelligence systems, space and science research, according to the review.
President Obama told a Pentagon press briefing that Defense has to develop “smart, strategic priorities.” Specifically, he called for enhanced intelligence, surveillance and reconnaissance systems.
In his written introduction to the review, Obama said the new strategy will “ensure that our military is agile, flexible and ready for the full range of contingencies.” He added this includes investments to ensure that the United States can prevail in all domains of military operations, including cyberspace.
Defense Secretary Leon Panetta said broad cuts in the new Defense budget, due for release in late January, do not apply to investments in technology, including unmanned systems, space capabilities and “particularly cyberspace capabilities.”
Defense budgeted $3.2 billion for cybersecurity in 2012. The Pentagon, Panetta said, must continue to invest “in new capabilities to maintain a decisive edge.”
He declined to provide specific funding figures for any military programs, deferring that action until release of the 2013 Defense budget. But, Panetta said, the strategy will drive the structure of the budget.
Deputy Secretary of Defense Ashton B. Carter said the new strategy envisions budget increases in “all aspects of cyber,” along with science and technology research. Defense cannot abandon that research, Carter said, as it would be akin to “eating our seed corn.”
Highlighting the importance of networks and space systems in the future, the strategy document said: “Modern armed forces cannot conduct high-temp, effective operations without reliable information and communication networks and assured access to cyberspace and space. Today space systems and their supporting infrastructure face a range of threats that may degrade, disrupt or destroy assets. Accordingly, DoD will continue to work with domestic and international allies and partners and invest in advanced capabilities to defend its networks, operational capability and resiliency in cyberspace and space.”
Trey Hodgkins, vice president of national security and procurement policy at TechAmerica, an industry trade group, said the new military strategy reflects an increasing awareness within Defense that technology, including information technology, sits at the core of multiple missions, and the Pentagon has to continue to beef up investments in this area.
Obama pointed out that the new military strategy shifts the Pentagon focus from Europe and the Mideast to the Asia-Pacifc region, including a beefed-up U.S. force presence in Australia that he announced in November 2011.
“As we end today’s wars, we will focus on a broader range of challenges and opportunities, including the security and prosperity of the Asia-Pacific [region],” Obama wrote in his introduction to the review. This shift includes dealing with the growth of the military power of China, which should be balanced by greater U.S. military presence in the region, the document said.
Hodgkins said this increased focus on the Asia-Pacific region will boost the importance of the U.S. Pacific Command headquartered in Honolulu and will require greater Defense network capacity in the region.
– by Bob Brewin – NextGov – 01/05/12 at http://www.nextgov.com/nextgov/ng_20120105_8406.php?oref=rss?zone=NGtoday