Georgia Tech Procurement Assistance Center

Federal contracting trends to expect in 2021

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While the COVID pandemic defined 2020 for government contractors and everyone else, I have hope that 2021 will mark a return to normalcy and growth for this sector.  Federal contracting will still feel the effects of the pandemic in the year ahead, but other issues are on the horizon for our now $600 billion industry.

Here are what I predict will be the main trends and headlines to watch for in 2021:

Employee Recruitment From Lower Cost Areas: Related to the increase in remote workers due to COVID-19, federal contractors can now recruit for staff from across the United States who do not necessarily need to live in expensive areas like Washington D.C.  The lower cost of living in other locations could result in lower salaries, which in turn will allow for more competitive pricing.

Large Companies Will Reach Out to Smaller Contractors for Access: Larger contractors will increasingly reach out to smaller businesses for access to set aside contracts.  This is due in part to increased emphasis on HUBZones, women-owned small businesses, economically disadvantaged women-owned small businesses and other set-aside categories.

Continue reading at:  Nextgov

Federal contract spending grew 9% in 2018

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Federal contract spending in fiscal 2018 increased for the third straight year to $559 billion, a 9% increase over 2017 spending and the highest level since 2010, when agencies spent $562 billion.

The data, compiled by Bloomberg Government, include prime and unclassified contract spending.  Bloomberg released the findings in the eighth annual BGOV200 report, which ranks the top 200 federal contractors.  The report analyzes market trends, contrators’ performance and other dynamics among the 24 largest federal agencies in 27 purchasing categories during the prior fiscal year.

Among the departments with the biggest gains in contract spending in fiscal 2018 were: Defense, Energy, Homeland Security and Transportation.  Some of the top markets were weapons, professional services, aircraft parts and technology.

The top six companies’ rankings didn’t change from fiscal 2017.  They are: Lockheed Martin Corp, Boeing Co., General Dynamics Corp., Raytheon Co., Northrop Grumman Corp. and McKesson Corp.  Previously ranked 20th in 2017, United Technologies Corp. is seventh in 2018.  All but one of the companies in the top 10 are in the defense industry.

Continue reading at:  Government Executive

The government’s historic spending spree continues

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Driven largely by the Defense Department, the federal government’s discretionary spending spiked to a seven-year high in fiscal 2018, with agencies obligating more than $554 billion for products and services, up $100 billion from 2015.

According to official spending data from the Government Accountability Office, the Defense Department accounted for $358 billion in contract obligations while civilian agencies, like the Veterans Affairs and Homeland Security departments, obligated $195 billion.

The government closed the 2018 fiscal year on a massive spending spree—due in part to funding increases after a delayed budget agreement—and early fiscal 2019 spending data indicates the government isn’t slowing down its contract spending.

Spending data tabulated by the Professional Services Council illustrates the spending uptick.

Continue reading at:  Nextgov

Department of Labor to host education, outreach event for veterans June 26th

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The U.S. Department of Labor’s Office of Federal Contract Compliance Programs and Veterans’ Employment and Training Service are collaborating with the Georgia Department of Labor, the Atlanta VA Health Care System, and the Goodwill Career Center to host a veteran’s education and outreach event, according to a press release.

The event, titled “From Deployment to Employment: Hire a Veteran Career and Resource Linkage,” serves as an opportunity for qualified veterans, veterans with disabilities, and military spouses to connect with federal contractors offering employment.  The event will also assist federal contractors in meeting goals for hiring individuals with disabilities and veterans, and connect these companies with community-based organizations that provide training and rehabilitation services to veterans with disabilities.

Registration for the event is available at:  Eventbrite 

Continue reading at:  U.S. Department of Labor website

How government contracting is still suffering from the shutdown

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The longest government shutdown in U.S. history ended in January 2019, but businesses that contract with the federal government are still seeing damaging effects for themselves and their employees months later, according to witnesses who testified at a May 6 House Oversight and Reform Committee hearing.

“Everyone thinks the shutdown ended on the 25th [of January]. The shutdown ended on the 25th for government employees.  The shutdown didn’t end for our employees until we got a letter from the contracting officer authorizing us to come back to work,” said Roger Krone, CEO of Leidos.

“Where it may have been 35 days for government employees, it could be another 14 days or more for contractors.  Because the contracting officer had to come to work, get through the pile of paper, figure out what contracts were under a stop work order, and then prioritize those and authorize the contractors to come back.”

Federal employees were guaranteed back pay for the time they were forced to stay home from work or work without pay during a shutdown.  But contractors received stop-work orders or were unable to access the resources necessary for their contracts, and never received compensation for that time they were unable to go to work.

Continue reading at the: Federal Times

New bill wants to speed up small biz payments

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Four House lawmakers have introduced legislation that would shorten the amount of time small business wait to get paid by federal agencies for work done on contract.

Under the proposed “Accelerated Payments for Small Businesses Act,” small businesses working as prime contractors or subcontractors would get paid within 15 days versus the current standard of 30 days.

Reps. Troy Balderson (R-Ohio), Steve Chabot (R-Ohio), Jason Crow (D-Colorado) and Adriano Espaillat (D-NY) introduced the bill in a move that comes nearly three months after the end of a five-week partial government shutdown that shuttered many civilian agencies.

Continue reading at: Washington Technology

How DUNS number changes could affect your business

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Businesses of all sizes should know of a significant change in the way government grants and contracts will be handled.  The General Services Administration (“GSA”) announced in an interview with Nextgov.com that they are changing vendors for their federal contractor numbering system – better known as the DUNS (“Data Universal Numbering System”).  The system update won’t likely look different for companies right away, but here’s what you should know moving forward.

What is the DUNS?

The Data Universal Numbering System is a long-held practice for assigning businesses or organizations a unique identifier that can be used when applying for grants or contract opportunities through the government.  The GSA runs contracting programs is the agency responsible for making sure businesses follow correct procedures when looking to be awarded government business – including ensuring their application includes a valid DUNS.

Since 1962, Dun & Bradstreet has managed much of the system, including the DUNS program – an addition to the system brought about by regulation in 1998.  For twenty years, D&B has held the contract for managing validation and records.  That all changed last year when the GSA announced they were opening up the role to competing bids.

Continue reading the article at: Nav Blog

New OHA decision regarding class waivers of the non-manufacturer rule creates uncertainty

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Those familiar with Federal procurements know the general rule: If you submit a proposal against a solicitation despite disagreeing with one of its provisions, you usually waive the right to challenge that provision in the future.  That rule applies to bid protests at both the Government Accountability Office (“GAO”) and the Court of Federal Claims.  In Size Appeal of Cypher Analytics, Inc. d/b/a Crown Point Systems, SBA No. SIZ-5986 (2019), the Small Business Administration’s (“SBA”) Office of Hearings and Appeals (“OHA”) recently showed that the general rule does not necessarily apply to SBA size protests.

Continue reading the article at: Government Contracts Insights

GSA moves forward with plan to consolidate the federal supply schedule program

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The General Services Administration (“GSA”) currently operates 24 Multiple Award Schedules (“MAS”), under which it awards largely pre-negotiated contracts on largely commercial-item terms for a dizzying array of products and services.  The current schedules are organized by industry or type of service, with individual schedules covering areas both broad (Schedule 70, IT procurement), narrow (Schedule 78, sports equipment, signs and trophies), and potentially duplicative (Schedule 71, furniture/Schedule 72, furnishings and floor coverings).  The GSA recently announced that it will abolish this fractured landscape.  Rather than maintain its current 24 MAS rubrics as separate entities, GSA announced it will consolidate all 24 into a single schedule.  Stephanie Shutt, the Director of GSA’s MAS Program Management Office, described this change as part of a “mass reform project” to “ensure MAS is easy, efficient, and modern.”  This announcement impacts all contractors with this type of schedule contract and will dramatically alter the process by which contractors apply for and government stakeholders purchase from GSA schedules.

Continue reading this article at: Arnold & Porter website

U.S. Government issues definition of “recruitment fees” in FAR anti-trafficking regulations

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The Department of Defense (“DoD”), General Services Administration (“GSA”), and National Aeronautics and Space Administration (“NASA”) recently issued a final rule amending the Federal Acquisition Regulation (“FAR”) to clarify the FAR’s prohibition on assessing employees with recruitment fees in connection with federal contracts.  The rule provides a final definition of “recruitment fees” and clarifies the FAR’s broad prohibition on federal contractors or subcontractors assessing employees or potential employees with any such fees.  The final rule brings long-awaited clarity to the scope of the prohibition on recruitment fees, as the term has not previously been defined in anti-trafficking regulations.

Keep reading this article at: Arnold & Porter website

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