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The Pentagon’s contract spending problem

September 6, 2016 By Andrew Smith

pentagon-sealThe Defense Department continues to spend more than half its contracting dollars without legitimate competition between vendors, according to its Office of Procurement and Acquisition Policy.

A competition scorecard for the third quarter of fiscal 2016 released this week by the office shows that of $205 billion awarded in contract spending across DOD, only $101 billion was competed.

That compete percentage, about 49.7 percent of total contract spending, falls short of DOD’s stated 57 percent goal for fiscal 2016, and indicates a continuation of almost a decade of declining competition across the military space for everything including IT systems, professional services and weapons systems.

Keep reading this article at: http://www.nextgov.com/defense/2016/08/pentagons-contract-spending-problem/131008

Filed Under: Contracting News Tagged With: competition, competitiveness, DoD, DPAP, spending

The ‘P’ in procurement isn’t just for price, it’s for people too

November 20, 2015 By Andrew Smith

Is the federal government moving away from lowest price, technically acceptable (LPTA) procurements? Contractors that are in the people business can only hope so.

When I say “people” business, I mean providing the government with people who exceed expectations in delivering operations, technology and facilities management services. In LPTA procurements, competitions in which the government selects the lowest-priced proposal that meets a minimum set of technical requirements, contractors are not rewarded, or even encouraged, for exceeding these minimum standards. This approach is not compatible with a corporate philosophy that stresses excellence in service delivery by people who are best qualified to do the job.

Kendall LPTA Memo
To see the full text of Frank Kendall’s memo on LPTA, click on the image above.

On March 4, 2015, Frank Kendall, undersecretary of Defense for acquisition, technology, and logistics, issued a memorandum detailing the role that LPTA procurements should play in the Defense Department’s acquisition process. According to the Kendall memorandum, use of LPTA is appropriate “only when there are well-defined requirements, the risk of unsuccessful contract performance is minimal, price is a significant factor in the source selection, and there is neither value, need, nor willingness to pay for higher performance.”

Keep reading this article at: http://www.govexec.com/excellence/promising-practices/2015/11/p-procurement-isnt-just-price-its-people-too/123593

Filed Under: Contracting Tips Tagged With: AT&L, DoD, DPAP, lowest price technically acceptable, LPTA

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