Georgia Tech Procurement Assistance Center

Top 10 acquisition trends of FY17

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As the final push for fiscal 2017 contract obligations comes to an end, it’s helpful to take a step back and assess the contracting environmental trends that have emerged over the past year. Each trend lends itself to further study, so here’s a high-level look at the top 10.

1. Federal sector spending has bottomed out, with anticipated growth.

Following years of declining spending, it is beginning to appear like this decline has bottomed out, with a growth in federal spending on the horizon. While there is considerable talk, firm steps are in motion for increased contract spending, particularly in defense, with reduced civilian agency spending. Clearly, a reevaluation is occurring from the dramatic budget cuts proposed for many civilian agencies, while the Department of Defense will reap increases in the short term.

Keep reading this article at: http://www.federaltimes.com/acquisition/2017/08/25/top-10-acquisition-trends-of-fy17-commentary/

State and local government survey shows increased opportunities, overworked staffs, and implications for vendors

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Government business intelligence company Onvia has released a new report addressing key changes and shifts taking place in public purchasing today.

The report — based on a survey of 668 procurement professionals and key decision makers from state, county and city agencies, including school and special districts nationwide — provides insights to businesses seeking contracts with these units of government.

In the report, agencies describe their current contracting environment as generally healthy and improving.  39% of the survey respondents expect growth in bid volumes in the next 12 months.  The report notes the “recent surge in demand for infrastructure bids stemming from the $200 billion in tax initiatives for these projects approved by voters nationwide in November.”

The increase in opportunities is contrasted with agency staff’s collective recognition that the formal bid/RFP process is “one of the most challenging aspects of their job, particularly in the areas of research, planning and specifications.”  State and local government procurement teams report that since last year there has been an increase in the share of procurement staff that are stretched or overworked.  Onvia notes that when purchasing staffs are overworked it has a negative impact on businesses who have to navigate through poorly worded bid language, adding preparation time for bidders.

Given the current purchasing environment, Onvia’s report contains a number of meaningful observations for businesses in pursuit of contracts with state, local, and educational (SLED) institutions.  Among the observations:

  • The most successful government contractors do not wait around for a bid or RFP to be issued but are actively building constructive, consultative relationships with government agencies. Without demanding loyalty or future business, these proactive companies will offer helpful advice to busy, overworked buyers about market or product trends, best practices and pricing guidelines that can help procurement staff during the critical pre-bid phase of research and planning.
  • Forward-thinking and proactive contractors should pay attention to these trends and consider how to be sensitive to buyer and user needs in their outreach, communications and project management. Where there is greater uncertainty, stress or confusion on the buying side, vendors that become known for working well with agency teams as valued partners can help differentiate themselves and earn more business even if they are not typically the lowest-priced option.

A free copy of the complete survey results and report can be downloaded at: https://www.onvia.com/market-research/surveys/survey-government-procurement-professionals-2017

 

Update on government contracts ramifications of the Trump administration

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In December 2016, Jones Day issued “ Government Contracts Ramifications of the Trump Election,” a Commentary in which we discussed several likely impacts of the Trump Administration in the government contracts arena. Specifically, we discussed that the new Administration would:

  • Seek repeal of numerous Executive Orders affecting government contractors.
  • Reject some Obama Administration procurement policies, such as: the preference for fixed-price type contracts; the preference for lowest-price technically acceptable (“LPTA”) evaluation schemes; and the preference against outsourcing government jobs to private companies.
  • Embrace Commercial Item contracting.
  • Increase government spending for defense, cybersecurity, infrastructure, and immigration-related activities.
  • Decrease spending by many agencies, including the Department of Education, Environmental Protection Agency, and Internal Revenue Service.
  • Focus on compliance issues such as rooting out fraud, waste, and abuse, and ensuring compliance with the Buy American Act and Trade Agreements Act.
  • Withdraw from, or renegotiate America’s participation in, certain trade relationships, which could affect companies’ supply chains.
  • Decrease the federal workforce, which could result in understaffing and undertraining within the acquisition workforce.
  • Appoint the members of the FAR Council, including the Office of Federal Procurement Policy (“OFPP”) Administrator, Secretary of Defense, Administrator of National Aeronautics and Space Administration, and the Administrator of General Services Administration.

Since the issuance of our earlier Commentary, President Trump has taken several actions that provide additional insight into the impact his Administration will have on government contractors.

Keep reading this article at: http://www.mondaq.com/unitedstates/x/564798/Government+Contracts+Procurement+PPP/Update+On+Government+Contracts+Ramifications+Of+The+Trump+Administration

Government contracts under the Trump administration

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President-elect Donald Trump will usher in a new era for government contractors, much like Presidents Barack Obama, George W. Bush and Bill Clinton before him.

What impact will the new president and administration have on the field of government contracts?

Click on this link to read about the 10 areas to watch: https://www.law360.com/articles/881546/government-contracts-under-the-trump-administration

New FAR rule encourages ‘constructive exchanges’ between federal agencies and contractors

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The November 29, 2016 edition of the Federal Register contains a proposed amendment to the Federal Acquisition Regulation (FAR) aimed at encouraging pre-acquisition communications between industry professionals and federal agencies.  This amendment is part of a five-year long effort by the Obama Administration to clarify that communications between potential government contractors and federal agencies are not only allowed, but encouraged.

The proposed rule would amend FAR 1.102-2(a)(4), which currently states that “[t]he Government must not hesitate to communicate with the commercial sector as early as possible in the acquisition cycle to help the Government determine the capabilities available in the commercial marketplace. The Government will maximize its use of commercial products and services in meeting Government requirements.”  In the revised version, the following language would be added:

“Government acquisition personnel are permitted and encouraged to engage in responsible and constructive exchanges with industry as part of market research … so long as those exchanges are consistent with existing laws, regulations, and promote a fair competitive environment.” 

There are a number of laws and regulations that may be come into play during pre-acquisition exchanges with government officials, including the Procurement Integrity Act, 41 U.S.C. § 423, Anti-Kickback Act, 41 U.S.C. § 51 et seq., restrictions on lobbying activity, regulations on collusive bidding, prohibition on contingent fee arrangements, and various laws prohibiting gifts and gratuities to and bribery of federal officials.

Keep reading this article at: https://www.insidegovernmentcontracts.com/2016/12/new-far-rule-encourages-constructive-exchanges-between-federal-agencies-and-contractors/

Contractors urge next President to upgrade acquisition workforce

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psc-45-agenda-sept-2016Under either a Clinton or Trump administration, the “on-demand” government of the future must be “responsive, agile, resilient, flexible, dynamic, flatter, more connected, less hierarchical, dynamic, seamless, more personalized, transparent and accountable.”

That’s according to the Professional Services Council’s blueprint for the incoming 45th president, released on Thursday under the title “PSC 45:  An Agenda for the Next President of the United States.”

The paper pushes for goals long part of the services contracting industry’s agenda—modernizing technology, embracing new business models, engaging more with the private sector and upgrading capacities of the federal acquisition workforce.

It also urges a robust presidential management agenda next year. “The mandate for change provides a moment of opportunity,” said David Wennergren, the council’s executive vice president for operations and technology. PSC has 400 member companies.

The report warns that recent administrations’ “failures around 9/11, Hurricane Katrina and the initial roll-out of the Affordable Care Act make clear that management lapses can impose serious political consequences.”

Keep reading this article at: http://www.govexec.com/contracting/2016/09/contractors-urge-next-president-upgrade-acquisition-workforce/131578

Contractors attempt to get on the Presidential candidates’ radar

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More than in past election years, a top contractors group has been diving in to prepare for the coming presidential transition, in part with the release on June 9, 2016 of a new survey highlighting concerns over capabilities of the government’s acquisition workforce.

Professional Services Council - PSC“We are working with the Partnership for Public Service and other groups on a number of papers and a multi-pronged strategy” for meeting with the teams of the major presidential candidates, said Alan Chvotkin, executive vice president and counsel of the 400-company Professional Services Council, at a panel at the ACQUIRE Conference & Expo in Washington, D.C.

Getting an audience with the candidates or staff isn’t easy, added David Berteau, the council’s president and CEO, “because candidates don’t want to be take away one ounce of energy from getting elected.”

Keep reading this article at: http://www.govexec.com/contracting/2016/06/contractors-eye-presidential-transition-continuity-acquisition/128984

See article about the Acquisition Policy Survey with link to survey results here: http://contractingacademy.gatech.edu/?p=9709

Tech industry offers six ways for feds to buy better IT

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A group of public and private sector technology councils are suggesting ways the federal government could get better at buying IT.

PSC white paperA white paper published this week highlights six areas where the government can modernize or update the way in which it purchases services and technologies from private companies, crafting a number of ways feds could amend acquisition regulations.

“Our collective goal is to enable the government to reach, directly or indirectly, the full array of capabilities and solutions that exist in the private sector to deliver effective mission results,” the paper reads.

Among the suggestions are integrating an “innovation template” and “emerging technology provision” into contracts to give agencies flexibility when it comes to acquiring rapidly evolving tools.

The paper also calls for best value/cost-technical tradeoff to be the default evaluation technique used for services acquisitions except for the most basic, commoditized requirements, as well as to include “an alternative solution or strategy” that differs from RFP requirements as long as the solution meets the contract’s desired outcome.

Keep reading this article at: http://fedscoop.com/tech-councils-offer-ways-for-feds-to-upgrade-acquisition-process

Download white paper here: Delivering-Results-A-Framework-for-Federal-Government-Technology-Access-Acquisition

Why DHS causes more headaches for industry than any other agency

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A culture of fear and lack of consistency at the Homeland Security Department (DHS) are perpetuating a fractured relationship with some members of industry, who said they are less enthusiastic about working with DHS than they are with other federal agencies.

DHS logo“The fact that people don’t want to do business with us is a big problem for me,” Russell Deyo, DHS undersecretary for management, said Nov. 9 at the Homeland Security and Defense Business Council’s DHS Enterprise symposium in Washington. “And I need to understand why and what we can do about it.”

Deyo, who spent nearly three decades at Johnson & Johnson, presented his four management priorities for the final year of the Obama administration before a group of industry executives.

But the conversation that followed quickly took a turn, when one member of industry suggested DHS approach its vendor relationship with more urgency.

Keep reading this article at: http://federalnewsradio.com/industryassociations/2015/11/dhs-causes-headaches-industry-agency/

Armed Services Board of Contract Appeals reaffirms only a CO can modify a contract

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A construction contractor was unable to recover the costs of performing changed work allegedly ordered by the government’s project engineers because the engineers did not have authority to modify the contract.
asbca sealAs demonstrated in a recent Armed Services Board of Contract Appeals (ASBCA) decision, only a contracting officer or the contracting officer’s designated representatives may modify a contract, and a contractor bears the risk of non-payment by performing changed work directed by an unauthorized government employee.

The ASBCA’s decision in Circle, LLC, ASBCA No. 58575 (July 1, 2015) involved a contract between Circle, LLC and the U.S. Army Corps of Engineers, pursuant to which Circle was to construct a concrete flume on the Two Mile Canal in Jefferson Parish, Louisiana. As part of its scope of work, Circle was to erect a Temporary Retaining Structure to stabilize the site while the flume was constructed.

Keep reading this article at: http://smallgovcon.com/claims-and-appeals/governments-engineers-couldnt-modify-contract-says-asbca/

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