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.
Who won the biggest single award of 2011?
December 20, 2011 by cs
In response to reader requests to count down the top 10 single federal contract awards, we bring you the biggest contracts of fiscal 2011 that were won by just one company.
In the countdown, we have one joint venture and one company that won three of the top 10 contracts.
There also are five contracts worth over $1 billion each. It’s hard to have a bad year if you capture one of those all to yourself.
Washington Technology created the countdown based on research provided by Deltek.
So starting with No. 10, the 2011 countdown begins….
10. Boeing Co.
Army Enhanced Medium Altitude Reconnaissance and Surveillance System
AKA: EMARSS
Value: $323 million
Purpose: The Army is using the contract to develop a government-owned, contractor-operated manned aerial reconnaissance, intelligence, surveillance and target acquisition system that will be deployed worldwide.
9. Noblis Inc.
FAA Enterprise Communications Support Services Full and Open
AKA: ECSS
Value: $350.2 million
Purpose: Noblis is providing support services to the FAA’s Air Traffic Control Communications Services Directorate. Tasks involve systems engineering, acquisition and program management support, operations management and support, business and financial management, information systems development and support, and studies, analysis and evaluations.
8. Lockheed Martin Corp.
Navy Joint Counter Radio Controlled Improvised Explosive Device Electronic Warfare Technologies
AKA: JCREW 3.3
Value: $455 million
Purpose: Lockheed Martin is supporting the development and demonstration of technologies to improve work on improvised explosive devices. Services include antennas, receivers and transmitters, signal generation, communications equipment, scalable open architectures, and other technical services.
7. Science Applications International Corp.
Defense Logistics Agency Tire Successor Initiative
AKA: TSI
Value: $725.5 million
Purpose: SAIC manages the supply chain and materiel support for the government’s aircraft and ground tires. The company will be involved in demand planning and forecasting, order processing and fulfillment, purchasing, inventory management and other services.
6. Lockheed Martin Corp.
Navy Technology Insertion Hardware
AKA: TI Hardware
Value: $758.2 million
Purpose: Lockheed Martin Mission Systems and Sensors is providing program management, engineering, design, development, logistics and other support for the Team Submarine Common Production Hardware project. The project involves the continuous evolution of display, processor and network systems associated with Navy combat control, sonar and imaging systems.
5. Orbital Sciences Corp.
Missile Defense Agency Intermediate Range Ballistic Missile Target Class
AKA: IRBM
Value: $1.1 billion
Purpose: Orbital is providing logistics support to the Missile Defense Agency including inventory storage and maintenance management, pre- and post mission analysis, launch preparation and execution and engineering services.
4. Forfeiture Support
Associates LLC
Drug Enforcement Administration Asset Forfeiture Program Administrative Support Services
Value: $1.7 billion
Purpose: FSA, a joint venture of L-3 and Aecom Government Services, provides administrative support for the government asset forfeiture program. Services include personnel management and supervision, recruitment and retention, training, data analysis, legal process support analysis, and other services.
3. QinetiQ Group
NASA Kennedy Space Center Engineering Services Contract
AKA: KSC
Value: $2 billion
Purpose: QinetiQ provides a variety of services such as development of ground support systems, processing launch vehicles and payloads, flight systems sustaining engineering, ground systems engineering and other technical services.
2. Lockheed Martin Corp.
Navy Acoustic Rapid Commercial Off the Shelf Insertion
AKA: A-RCI
Value: $2.1 billion
Purpose: Lockheed is supporting the Naval Sea Systems Command integrate a sonar system that integrates and improves towed array, hull array, sphere array, and other ship sensor processing. The work includes the rapid insertion of COTS based hardware and software.
And the largest contract of fiscal 2011 went to….
1. Hewlett-Packard Co.
NASA Agency Consolidated End User Services
AKA: I3P ACES
Value: $2.5 billion
Purpose: NASA has hired HP to consolidate management of end-user services, devices and products. Services include a customer contract center, email, calendaring, systems administration, and integrated hardware and software maintenance.
About the Author: Nick Wakeman is the editor-in-chief of Washington Technology. Published Dec. 14, 2011 at http://washingtontechnology.com/Articles/2011/12/14/top-single-award-contracts-2011.aspx?s=wtdaily_151211&Page=4.
HUBZone changes could affect your business
October 6, 2011 by cs
The Small Business Administration’s HUBZone program helps small businesses gain preferential access to federal procurement opportunities, both prime contracts and subcontracts. If your business is located in a HUBZone — a Historically Underutilized Business Zone — you could benefit.
Whether you are familiar with the HUBZone program or this is the first time you’ve heard of it, you need to know there are changes that have just taken place potentially affecting your eligibility.
On October 1, 2011, the areas of the country designated as HUBZones changed. These changes are based on census tracts and the 2010 census data recently issued by the Commerce Department. Contracting preferences can go to small businesses that maintain their “principal office” in one of these specially designated areas and employ people who live in a HUBZone. After meeting these and other standards, a firm must apply for and be granted formal HUBZone certification by the SBA.
The SBA used to maintain a web site where businesses could view a map that displayed HUBZone locations across the country. However, since census-based HUBZone designated areas just changed on October 1st, the on-line maps are not presently available. Instead, a new on-line tool has been put in place where businesses can look up addresses to see if they are in a HUBZone. The new look-up tool is located at: http://map0.sba.gov:82/gis/esri/hubzone/index.html.
With changes in the geographic areas that are and are not HUBZone eligible, many firms no longer qualify while presumably others will now qualify. Whether you were previously HUBZone qualified or not, you should use the look-up tool in the previous paragraph to determine whether you potentially qualify. Remember, a business address located within a designated HUBZone is only one step toward qualifying for HUBZone certification. In order to qualify, at least 35 percent of a company’s employees also must live within HUBZones. Thus, businesses should use the look-up tool to check employee home addresses as well. A full description of all HUBZone certification requirements can be found at http://www.sba.gov/content/applying-hubzone-program.
The SBA currently is in the process of sending out letters to all HUBZone-certified companies asking them to re-verify their eligibility. The SBA is telling these firms to use the look-up link and check addresses to determine whether they still qualify for the program.
Results from using the on-line look-up tool can be confusing. For instance, if the look-up result shows that an address will be qualified “at least until June 1, 2011″ then the address is in a HUBZone that expired on October 1, 2011. The reason for this is that the SBA originally projected the U.S. Census data release date to be June 1, 2011 and this date still appears within SBA’s HUBZone look-up tool.
While complex, participation in the HUBZone program could be worth your while. If your business qualifies for the program, and you pursue SBA’s certification for HUBZone status, you could be the beneficiary of a restricted-competition HUBZone set-aside contract.
More information about all this is at http://www.sba.gov/content/notice-expiration-redesignated-hubzones-october-1-2011. As always , if you need assistance at any point along the way, please contact the GTPAC Procurement Counselor nearest you; all contact information can be found at http://gtpac.org/team-directory.
– Compiled by the Georgia Tech Procurement Assistance Center from information available through several SBA sources.
Lockheed tops all DOD contractors, analysis finds
September 28, 2011 by cs
Lockheed Martin Corp. topped all Defense Department contractors with about $12.5 billion in 6,334 contracts and contract modifications in 2010, according to an exclusive Aviation Week Intelligence Network analysis.
Boeing Co. came in second with about $8.3 billion for 1,756 transactions, while General Dynamics Corp. ranked No. 3 with about $6.7 billion in 5,604 transactions.
Rounding out the top 10 DOD contractors were:
- Northrop Grumman Corp.
- Oshkosh Truck Corp.
- BAE Systems.
- Bechtel Corp.
- Kellogg, Brown and Root.
- Bell-Boeing Joint Project team.
- Raytheon Corp.
Lockheed Martin Corp., of Bethesda, Md., ranks No. 1 as well on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.
– by Washington Technology staff, Sept. 26, 2011, at http://washingtontechnology.com/articles/2011/09/26/agg-aviation-week-survey.aspx?s=wtdaily_270911
Contractors ordered to post DOD fraud hotline info
September 26, 2011 by cs
Make room on the bulletin board near contractor coffee makers and break rooms.
The Defense Department now requires its defense contractors to post the DOD inspector general’s fraud hotline posters in common work areas. The rule took affect Sept. 16, according to a notice in the Federal Register the same day.
The DOD IG didn’t think the old rules went far enough because the Federal Acquisition Regulation allowed a contractor to not post any other agency’s hotline numbers other than those of the Homeland Security Department if the company had its own business ethics program with a means of reporting fraud or waste.
However, the DOD IG believes the FAR might be limiting the use of its own hotline. Without a poster, an employee wouldn’t know the IG’s phone number.
“According to the DOD IG, some contractors’ posters may not be as effective as the DOD poster in advertising the hotline number, which is integral to the fraud program,” the notice explained. The DOD IG is also revising its poster to tell employees of federal whistleblower protections.
The rule amends the Defense Federal Acquisition Regulation Supplement, or DFARS.
In response to the proposal in May, some experts were concerned that the new hotline posters could replace the contractor as the first line of defense against waste and fraud. It would also get the IG involved in what often turns out to be human resource issues or concerns about day-to-day activities that may need immediate attention.
But the IG said its staff knows the difference between an urgent matter about a defense contract and a routine personnel issue.
The rule applies to contracts and subcontracts that exceed $5 million. It does not apply to purchases of commercial items or for work that will be performed entirely outside the United States if the contract exceeds $5 million.
About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement at Washington Technology. This article appeared on Sept. 19, 2011 at http://washingtontechnology.com/articles/2011/09/19/dod-ig-required-fraud-hotline-posters.aspx?s=wtdaily_200911.
OMB urges agencies to pay small business contracts faster
September 22, 2011 by cs
Federal agencies must accelerate their payments to small business contractors, according to an Office of Management and Budget memorandum released Wednesday.
The new guideline cuts the recommended payment time in half. Previously, under the 1982 Prompt Payment Act, agencies had to make payments within 30 days from when an invoice was received. Now, agencies should make payments within 15 days, or as soon as practicable.
With the government spending nearly $100 billion a year in small business contracts, OMB predicts this will boost cash-flow for small businesses and help create economic growth.
“This will benefit tens of thousands of small businesses by getting money into their hands faster,” Jeff Zients, deputy director for management and chief performance officer, said in a blog post for OMB. The late payment interest penalty will not change, however. A provision in the Prompt Payment Act, the penalty is triggered when an agency does not pay within the 30-day mark.
Initial reaction from the National Small Business Association is positive.
“We’re supportive of it conceptually. Expediting the payment time is a good thing,” said Molly Brogan, vice president of public affairs for the group.
Agencies are expected to notify OMB by Nov. 1 when they can begin making accelerated payments.
– by Caitlin Fairchild - Government Executive – September 15, 2011 at http://www.govexec.com/story_page.cfm?articleid=48808&dcn=e_tma.
Contractor cuts among proposals sent to super committee
September 21, 2011 by cs
Three recommendations that target contractors are on a list of proposals sent to the deficit super committee from the GOP side of the Senate Subcommittee on Oversight of Government Management.
Sen. Ron Johnson, (R-Wis.), collected the recommendations from a variety of sources and has submitted them to the Joint Select Committee on Deficit Reduction. Known as the super committee, it is charged with finding between $1.2 trillion and $1.5 trillion in savings over 10 years. They have to report their recommendations by Nov. 23 and the President must sign the bill by Jan. 15 or automatic cuts kick in.
On Johnson’s list is cutting the contractor workforce by 15 percent, which he says would save $233 billion over 10 years. Eighty percent of the more than $100 billion spent with contractors each year is for services. Johnson is advocating that agencies be required to provide an annual headcount of the number of employees working on federal contracts. His document credits the suggestion to a report by Sen. Tom Coburn (R-Okla.) called “Back in Black: A deficit reduction plan,” released in July.
A second recommendation that would impact business opportunities for contractor is Johnson’s proposal, also pulled from Coburn’s report, that federal IT management be reformed and that the government close data centers. Technology allows more work to be done by fewer computers and data centers, so closures would increase efficiency and create savings.
Johnson pegged the savings at $200 billion over 10 years.
A third recommendation could create more opportunities for contractors. Johnson is recommending that the government expand its use of public-private partnerships for infrastructure projects. He says the savings could be $180 billion over 10 years.
The government should use more partnerships for highway, rail, port, airport and other projects, he noted. The government could improve project management and take advantage of private sector incentives and efficiencies, Johnson wrote.
The recommendations are part of a House report, “Sitting on Our Assets: Federal Government’s Misuse of Taxpayer-owned Assets,” that comes out in October. Rep. John Mica (R-Fla.) also has proposed the policy as well.
About the Author: Nick Wakeman is the editor-in-chief of Washington Technology. Published Sept. 16, 2011 at http://washingtontechnology.com/articles/2011/09/16/supercommittee-contractor-recommendations.aspx?s=wtdaily_190911.
Learn ‘soup to nuts’ of government contracting November 7-18
September 15, 2011 by cs
Serious about learning everything about government contracting? Interested in learning about contracting from a federal contracting officer’s point-of-view? Looking for an opportunity to learn government contracting in a comprehensive and interactive way?
If you answered “yes” to these three questions, then “Mission-Focused Contracting” – a two-week course offered by The Contracting Education Academy at Georgia Tech — is the place to be.
This very comprehensive course is being offered on the Georgia Tech campus over a two-week period, November 7 through 18, 2011. (Please note that there will be no class on Friday, November 11 in observance of Veterans’ Day.)
Mission-Focused Contracting is the capstone course for Level I contracting professionals and all non-contracting personnel who play a role in the acquisition process. This class is applicable to both government and industry purchasing and engages participants in the entire government acquisition process, from meeting with the government customer to completing the contract close-out process. Throughout this course, participants have the opportunity to learn and apply problem-solving and negotiation skills.
The Contracting Education Academy at Georgia Tech (The Academy) is an approved equivalency training provider to the Defense Acquisition University (DAU) and provides continuing education training to acquisition and government contracting professionals as well as to business professionals working for government contractors or pursuing opportunities in federal contracting.
How You Will Benefit:
By attending this course, participants will learn how to:
- Complete market research to identify procurement sources
- Develop a bid or proposal package
- Evaluate proposals and award contracts
- Monitor contractor performance, apply remedies, and make proper contract payments
- Modify contracts, exercise options, and complete the contract closeout process
Business people taking this course have the unprecedented opportunity to sit side-by-side with government contracting personnel to learn the ins and outs of federal contracting. In addition, many of the principles of federal contracting apply to state and local government procurement.
To learn more about this course — and to register– please visit: http://www.pe.gatech.edu/courses/con-120-mission-focused-contracting.
Obama wants small businesses paid in 15 days
September 15, 2011 by cs
The government will be paying some small businesses in half the time under a new proposal by President Barack Obama.
Obama announced his new “QuickPay” plan on Sept. 14. It requires agencies to cut checks in 15 days, instead of 30 days, after they receive a valid invoice. The 15-day payments apply only to prime contractors.
“Today I’m ordering all federal agencies to make sure those small-business owners get paid a lot faster than they do now. In many cases, it will be twice as fast. So that puts more money in their pockets quicker, which means they can hire folks quicker,” Obama said Sept. 14 in Raleigh, N.C.
The plan goes into effect immediately.
The administration decided getting cash to companies is necessary in these economic times and moved the payment deadline under the Prompt Payments Act, Jacob Lew, director of the Office of Management and Budget, wrote in a memo released Sept. 14.
“When small contractors get their money in 15 days instead of 30, it results in a permanent infusion of cash flow into their businesses,” Small Business Administration Administrator Karen Mills said in a statement. “Their financial footing gets stronger — permanently.”
Lew is also telling agency officials that by November, they must tell OMB officials when they began paying small businesses in 15 days and the name of the federal official responsible for it.
The government awards nearly $100 billion annually in federal contracts to small firms, and sending money out quickly would help those companies in tough times, officials said.
Rep. Sam Graves (R-Mo.), chairman of the House Small Business Committee, applauded the president’s new plan.
“Small businesses bring more competition and reduced prices to federal contracting, so we should make sure the federal government pays them in a timely manner, especially considering most of them are operating on tight profit margins and trying to do more with less,” he said.
On Sept. 8, Obama said the government could help struggling small-business contractors by sending payments more quickly.
Joe Jordan, associate administrator of government contracting and business development at the SBA, said the 15-day mark benefits small businesses the most while not forcing agencies to change or modify their automated systems or processes.
“It really has a great confidence component,” he said.
“By taking actions that will enable these payments to be made as promptly as possible, we will improve cash flow for small businesses and provide them with a more predictable stream of resources,” Jeffrey Zients, chief performance officer and deputy director for management at OMB, wrote in a new post on OMB’s blog.
About the Author: Matthew Weigelt is a senior writer covering acquisition and procurement for Washington Technology. Published Sept. 14, 2010 at http://washingtontechnology.com/articles/2011/09/14/small-business-15-days-paid.aspx?s=wtdaily_150911
5 things you need to know to close deals as fiscal year ends
September 15, 2011 by cs
Just a few weeks remain in the most turbulent federal fourth quarter in memory. On Oct. 1, a new fiscal year will launch without a budget of its own. In the meantime, you’ve still got fiscal 2011 to close out.
At this point, your sales group must swerve into expediting mode in order to close as much business as possible in the remaining month until the end of the fiscal year.
While marketing and business development really can’t do much for the current fiscal year, you still have time to close sales.
Here’s how: Concentrate your expediting activities on making sure contracting officers receive complete, signable packages they’ll be willing to move on. Keep in mind, they are in a mode of only signing and moving packages entailing the least friction for them.
To ensure closure, make sure you can affirm the following statements.
1. My customer has completed its market survey.
Program people — those with the mission and budget — must identify best value options for the contracting officer, so your proposals must explain your value, and not just your technical chops.
2. My customer is solid on its requirements and has justified use of my product by name.
Government buyers are taught to state requirements without naming a brand. To make sure your brand gets procured, it must uniquely fill a requirement. That information must make its way into the requirements document that accompanies the purchase request.
3. The money is there.
Agency comptrollers decide whether or not expenditures map to the congressional intent for the money about to be spent. But the documentation must be transmitted to the contracting officer.
4. The contracting officer has identified a preferred vehicle against which to execute the purchase.
That’s the fastest way for a contracting officer to obligate funds, placing an order against an existing vehicle. Make sure the contracting officer has everything needed to comply with ordering procedures of that particular vehicle. Keep in mind, managers of the big government-wide acquisition contracts are themselves doing what they can to help ordering contracting officers to max out year-end sales, but they can’t cut corners.
5. I’m tuned into fair-notice/fair-opportunity notices for my contract vehicles.
Each vehicle has its own process. The closer you get to Sept. 30, your sales team must be ready to respond as cycle times compress.
Remember, a sale in the federal market isn’t a sale until a contracting officer signs an order or awards a contract. That makes federal sales different from commercial sales, where you can pretty much count on an order once it’s in the purchasing department. Federal contracting officers don’t report to program managers who manage the money, write the requirements and send purchase requests to the contracting officers.
Yet, even now, hundreds of millions of dollars remain uncommitted. Contracting officers don’t want to be deliberately obstructionist. But like the program and technology managers they serve (and you are selling to), they are looking at future uncertainty, the current time crunch and more oversight. Sellers who can help federal customers tie orders to authorized requirements and smooth the last-minute speed bumps will be able to maximize their fiscal 2011 revenue.
And here’s a bonus: By expediting last minute sales in this way, you’ll be able to deliver more accurate sales forecasts to headquarters. That’ll help maintain their faith in the federal market even as they look at the national headlines.
– by Steve Charles in Washington Technology. Published Sept. 14, 2011 at http://washingtontechnology.com/articles/2011/09/14/end-fiscal-year-sales-tips.aspx?s=wtdaily_150911