Georgia Tech Procurement Assistance Center

DoD unveils proposed cybersecurity capability model certification standards

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Cybersecurity.  It’s never over, is it?  In what can only be described as a “soft” release, the Department of Defense (DoD) has slowly and quietly begun to reveal its intent to provide federal contractors with a formal cybersecurity certification as early as next year.  The program, known as the Cybersecurity Capability Model Certification (CCMC), is an effort to streamline the acquisition process by providing acquiring agencies and consenting contractors with more exacting cybersecurity requirements for forthcoming acquisitions.

Moreover, as announced clearly and repeatedly by the Special Assistant to the Assistant Secretary of Defense for Acquisition and Sustainment for Cyber, Katie Arrington, during events on May 23, 2019, and June 12, 2019, certain cybersecurity costs will be allowable under certain circumstances.  This means that not only is DoD again in the process of facilitating the acquisition of cybersecurity capabilities throughout its entire supply chain, but now the DoD recognizes that it should actually pay for what it requires of contractors.

Continue reading at:  McCarter and English

COFC issues decision on Cost Accounting Standards and ‘offsetting’

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The Boeing Company v. United States, Civil No. 17-1969C (May 29, 2019) reveals the Court of Federal Claims’ (COFC) interpretation of the Cost Accounting Standards (CAS) statute as primarily benefiting the government, and directs contractors challenging the Federal Acquisition Regulation (FAR) 30.606(a)(3)(ii) prohibition on offsetting the impact of simultaneous cost accounting practice changes to raise those challenges in a pre-award protest or risk waiver.  Importantly, the court’s decision could have broad implications, requiring contractors to protest the applicability and interpretation of any extra-contractual FAR provisions—not just those involving the CAS statute—that expound upon a FAR Part 52 contract clause.

Adopting a novel theory rooted in the US Constitution, The Boeing Company (Boeing) filed an action under the Contract Disputes Act (CDA) alleging that the FAR 30.606 offset prohibition is an “illegal exaction” in violation of the CAS statute, which specifically prohibits windfalls to the government resulting from changes to a contractor’s cost accounting practices.  Boeing also claimed that FAR 30.606 was “extra-contractual” and therefore, should not preclude Boeing from offsetting changes that increase costs to the government from those that decrease costs.  The COFC dismissed Boeing’s constitutional claim for lack of subject matter jurisdiction and concluded that Boeing had effectively waived its contract claims upon failing to raise them in a pre-award protest or during negotiations with the government.

Continue reading at:  Arnold & Porter

An inside look at GSA’s federal marketplace strategy

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In a Federal News Network podcast, Emily Murphy, administrator of the General Services Administration, shares her vision for the agency’s Federal Marketplace Strategy (FMS).

During the podcast, Murphy outlines the four cornerstone initiatives (4C’s) of FMS:

  • MAS Consolidation
  • Commercial Platforms
  • Catalog Management
  • Contract Writing System

Murphy also provides an update on customer agencies growing use of GSA’s procurement portfolio, including the MAS, IT GWACs and OASIS.

Finally, she gives us a preview of the Federal Acquisition Service Training Conference scheduled for April 14-16, 2020 in Atlanta, Georgia.  FAST 2020 is a national training conference for the federal acquisition workforce, industry partners and customer agencies.

Listen to the podcast at:  Federal News Network

SBA denies 8(a) status based on applicant’s ability to successfully overcome gender-based discrimination in her field

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OHA recently affirmed the 8(a) status denial of a 100% woman-owned small business performing in the historically male-dominated renewable energy field.  The applicant—who SBA called an “advocate” and “mentor” to women in the industry—detailed specific instances of gender-based-discrimination that plagued her education, employment, and career.  But SBA was unmoved, instead focusing its analysis on the applicant’s triumph over these obstacles—apparently an indication that she was not socially disadvantaged in the first place.  

Continue reading at:  SmallGovCon

VA agrees that rule of two has priority over AbilityOne Procurement List

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In its most recent attempt to strike the appropriate balance between the Veterans First and AbilityOne programs, the U.S. Department of Veterans Affairs (“VA”) issued on May 20, 2019 a class deviation to the VA Acquisition Regulations (“VAAR,” 48 C.F.R. Chapter 8), instructing contracting officers to conduct a “Rule of Two” analysis before procuring from the AbilityOne Procurement List.

The Rule of Two is set forth in the Veterans Benefits Act of 2006 (“VBA”), 38 U.S.C. § 8127(d), which established the Veterans First program.  The Rule of Two requires that VA contracting officers determine whether two or more veteran-owned small businesses (“VOSBs”), including service-disabled veteran-owned small businesses, are capable of meeting the VA’s requirements at reasonable prices.  If two or more qualified VOSBs can satisfy the VA’s needs, the VA must procure those goods through those VOSBs that are awarded contracts.  The VBA also allows contracting officers to grant sole-source contracts to VOSBs under limited circumstances (38 U.S.C. §§ 8127(b)-(c)).

The new VA class deviation revises VAAR 808.002, Priorities for Use of Government Supply Sources, and subpart 808.6, Acquisition from Federal Prison Industries, Inc.—the two provisions that implement for the VA the FAR Part 8 mandatory source priority generally enjoyed by AbilityOne Procurement List and Federal Prison Industries vendors across government procurements.  The deviation instructs that the Veterans First priority displaces the AbilityOne priorities for “all VA contracts,” but that “if an award is not made to an eligible . . . VOSB under VAAR subpart 819.70, the priority use of AbilityOne applies and supplies and services on the Procurement List are mandatory sources.”  In this respect, the new VA class deviation reconciles the VA’s priorities for veterans and the separate, government-wide priority for AbilityOne nonprofit companies.

Continue reading at:  Government Contracts and Investigations Blog

Raytheon and United Technologies plan to merge

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Over the weekend, defense contractor Raytheon and aerospace company United Technologies announced that they plan to merge.  They’re calling it a “merger of equals,” an all-stock deal that would result in a new company, Raytheon Technologies.

If the deal makes it past regulators, the $100 billion company would become the second-largest aerospace and defense company in the U.S., behind Boeing.  The companies say the proposed merger’s important for them to keep their balance in shifting markets.  “They’re looking at it, in this acquisition, truly as a long-term view that this combined company will be able to ride the ups and downs of the markets,” said Doug Gates, head of aerospace and defense for KPMG.

Continue reading at:  Marketplace.org

Pentagon to unveil new Cybersecurity Maturity Model Certification (CMMC) for defense contractors

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The Department of Defense announced that it is developing a new cybersecurity standard and certification for defense contractors.  It is named the “Cybersecurity Maturity Model Certification” (CMMC).

Notably, the intent of the CMMC is to improve cybersecurity deficiencies in the defense industrial base and secure the supply chain.

The CMMC is expected to be based on NIST SP 800-171, as is the current Defense Federal Acquisition Regulation Supplement (DFARS) rule.  Specifically, DFARS Clause 252.204-7012 requires defense contractors handling sensitive, unclassified information to implement the 110 security controls of NIST SP 800-171.

However, the CMMC may incorporate or rely on frameworks in addition to NIST SP 800-171.

According to news reports, the CMMC will serve as the enforcement mechanism lacking in the current DFARS rule.

Although the draft CMMC has not yet been published, it’s been reported that there will be 5 levels of certification.  The levels will range from basic cyber hygiene to “State-of-the-Art.”  DoD contracts will require specific levels — and awards will be “go/no-go” based on the contractor’s certification status.

This is a fundamental change to how defense contracts are awarded today.

Read more at:  JD Supra

SBA proposes changes for the Women-Owned Small Business and 8(a) programs

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The U.S. Small Business Administration (SBA) has published a proposed rule to amend its regulations to implement a statutory requirement to certify Women-Owned Small Businesses (WOSBs) and Economically Disadvantaged Women-Owned Small Businesses (EDWOSBs) participating in the SBA’s Women-Owned Small Business Program, under which those businesses can be eligible for set-aside and sole source awards.

The WOSB Federal Contract Program, set forth in section 8(m) of the Small Business Act, 15 U.S.C. 637(m), authorizes contracting officers to restrict competition to eligible WOSBs or EDWOSBs for federal contracts in certain industries.  The 2015 National Defense Authorization Act amended the Small Business Act to allow for sole source awards to WOSBs and EDWOSBs.  In addition, the 2015 NDAA amended the Small Business Act to create a requirement that a concern must be certified as a WOSB or EDWOSB (by a federal agency, a state government, SBA, or a national certifying entity approved by SBA), in order to be awarded a set aside or sole source contract under the WOSB Federal Contract Program.

The proposed rule would permit an entity to be eligible for award under the program as long as its application is pending.  If that offeror were selected for award, its application would be prioritized by SBA and a determination would be made within 15 days.  This provision acknowledges that SBA may have difficultly processing all the potential applications in a timely manner, given the approximately 10,000 firms currently in the WOSB repository.  The anticipated influx of applications from these firms would likely overwhelm the SBA, which processes approximately 3,000 applications a year for 8(a) status and 1,500 a year for HUBZone status.

Continue reading at:  Holland and Knight

GAO infographic shows how the federal government spent money in 2018

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With tax season over, now is a good time to look at how the government uses your tax dollars.

About 40% of the government’s discretionary spending goes to contracts for goods and services covering everything from health care to hand grenades.  In fiscal year 2018, the federal government spent more than $550 billion on these contracts, an increase of more $100 billion from 2015.  This increase is largely driven by spending on national defense.

GAO has recently published an infographic that shows more details on how federal contracting dollars are spent across the federal government—including which agencies obligated the most funds, what they bought, and whether the contracts were competed.

Continue reading at the:  GAO Watch Blog

HUD is hunting for vendors for next phase of ‘centers of excellence’

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The Housing and Urban Development Department is bringing on vendors to help the agency overhaul its customer service operations, drive cloud adoption and expand its use of data analytics.

HUD and the General Services Administration on May 17th released draft solicitations for the second phase of the department’s Centers of Excellence program.  The high-profile initiative offers agencies the opportunity to improve existing IT systems and lay the groundwork for new technologies with extra assistance from GSA and the White House.

HUD was the second agency selected to participate in the program, after the Agriculture Department.  On Friday, GSA kicked off the third iteration of the program at the Office of Management and Budget.

In phase one of the HUD program, which began in September, government officials worked with industry to determine how to best address issues in key facets of the department’s IT infrastructure.  In phase two, the agency will recruit vendors to implement those solutions.

“We are excited to begin this next phase of our modernization efforts,” HUD Chief Operating Officer Ralph Gaines said in a statement. “We’re looking forward to seeing how these efforts will further transform the agency and make it more accountable to our customers.”

Continue reading at:  Nextgov

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