Georgia Tech Procurement Assistance Center

Pentagon races to empty its coffers by month’s end

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The federal government is primed to spend as much as $300 billion in the final quarter of fiscal 2018 as agencies rush to obligate money appropriated by Congress before Sept. 30 or return it to the Treasury Department.

The spending spree is the product of the omnibus budget agreement signed six months late in March coupled with funding increases of $80 billion for defense and $63 billion for civilian agencies. The shortened time frame left procurement officials scrambling to find ways to spend the money.

Through August, defense and civilian agencies obligated some $300 billion in contracts. But to spend all the money appropriated to them by Congress, they may have to obligate well over $200 billion more in the final quarter of fiscal 2018, which ends in two weeks.

Keep reading this article at: https://www.defenseone.com/politics/2018/09/unprecedented-government-spending-spree-picks-speed/151348

Discussions vs. clarifications vs. communications — and agency discretion

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Words have special meanings in federal contracting.

Here’s a description of how “discussions” differ from “clarifications” and pre-competitive range communications, as well as the Government’s discretion to conduct (or not conduct) such “exchanges.”

Discussions are exchanges between the Government and offerors after a competitive range has been established and invite or permit offerors to revise their proposals.  The underlying purpose of discussions is to allow offerors to strengthen their proposals and the procuring agency to get a better deal.  The Government Accountability Office (GAO) has long held that the “acid test” for determining if a particular exchange constitutes discussions is “whether the agency has provided an opportunity for proposals to be revised or modified.”  Raytheon Co., B‑404998, July 25, 2011, 2011 CPD ¶ 232 at 5.  This may be an actual pen-and-paper change to the proposal, or any other exchange that is necessary for the agency to determine the acceptability of a proposal.  See Int’l Waste Indus., B-411338, July 7, 2015, 2015 CPD ¶ 196 at 5.

Clarifications, on the other hand, are “limited exchanges.”  FAR 15.306(a)(1).  These exchanges do not allow offerors to revise their proposals, but may allow them to clarify certain aspects of their proposals or resolve minor clerical errors.  FAR 15.306(a)(2).  Clarifications may occur after a competitive range has been established, or even when discussions and proposal revisions are not contemplated at all.  Clarifications “cannot be used to cure proposal deficiencies or material omissions, materially alter the technical or cost elements of the proposal, and/or otherwise revise the proposal.”  STG, Inc., B-411415; B-411415.2, July 22, 2015, 2015 CPD ¶ 240 at 9.

Communications are a third category of exchanges and occur before the competitive range has been established.  See FAR 15.306(b).  Like clarifications, they do not allow offerors “to cure proposal deficiencies or material omissions, materially alter the technical or cost elements of the proposal, and/or otherwise revise the proposal.”  FAR 15.503(b)(2).  They are intended only to permit the Government to improve its understanding of proposals or past performance information, and address minor issues before a competitive range is established.  When adverse past performance information to which the offeror has not yet had an opportunity to respond would be the “determining factor” in excluding the offeror from the competitive range, the agencymust open communications with the offeror to address that information.  FAR 15.306(b)(1)(i).  For all other issues, the agency may hold communications if an offeror’s “exclusion from, or inclusion in, the competitive range is uncertain.”  FAR 15.306(b)(1)(ii).

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=653680

August 2017 protests underscore impact of government’s discretion

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There is no question that procurement regulations give agencies significant discretion at every step of the procurement process, and protesters often have a hard row to hoe to overcome the agency’s exercise of that discretion.

However, agencies often make that task easier by failing to provide full and logical explanations of their decisions that show they have considered all the relevant facts in light of the competing goals of the procurement system, not just the agency’s objective.

The following cases from August illustrate this point.

Keep reading this article at: http://www.mondaq.com/article.asp?articleid=629184

Despite procurement concerns, vendors made out well in 2016

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Federal procurement spending is up.

The number of mergers and acquisitions are skyrocketing. And overall, despite worries about the transition to a new administration, the continued inability of Congress to pass appropriations bills on time and what, many said, was an unfriendly environment for federal contractors, fiscal 2016 was a pretty darn good year for vendors.

Bloomberg Government found agencies spent $477.8 billion on acquisitions in 2016, up from $441.6 billion in 2015—a $36.2 billion increase (8 percent).

“Overall we saw a lot of positive areas for contractors in terms of growth in these markets,” said Daniel Snyder, deputy director of BGov’s Government Contracts Research, during a webinar on Aug. 29. “About one-third of overall categories were in the plus this year, and then in terms of companies, about 121 companies improved their rankings, they are followed by 64 who did a little worse than the year before and 14 remained just about the same and maintained their position.”Bloomberg Government released its sixth annual Top 200 contractors Aug. 23 along with data on trends across the federal sector.

Keep reading this article at: https://federalnewsradio.com/reporters-notebook-jason-miller/2017/09/despite-procurement-concerns-vendors-made-out-well-in-2016/

Companies scramble for $98 billion in federal contract spending

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As the clock ticks down on fiscal 2017, an estimated $98 billion in federal agency contract obligations remains unspent.

Federal agencies have until the end of September to spend an estimated $488 billion approved by Congress for their operations in fiscal 2017, or about $2.5 billion a day, according to data compiled by Bloomberg Government.

An estimated $390 billion had been spent as of Aug. 22. Any available funds not under contract by the end of next month will be returned to the Treasury.

The Department of Defense leads all federal agencies with $60 billion available to spend through the end of September, which represents about one out of five of its estimated, year- end spending total. The Department of State leads all agency shares of estimated, unspent obligations, at 41 percent.

Keep reading this article at: https://about.bgov.com/blog/companies-scramble-98-billion-federal-contract-spending/

Tips for disaster recovery contracting

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If you are seeking to do business with the Federal Emergency Management Agency (FEMA) in support of a disaster recovery effort, please be aware that in accordance with the Robert T. Stafford Act, FEMA seeks out local companies to perform contract work within the disaster area for goods and services related to a specific disaster.

The Army Corps of Engineers, and its contractors, actually do a lot of disaster response and recovery work such as debris removal. Use this link to access more information on contracting with the Corps in emergency situations: http://www.usace.army.mil/Missions/Emergency-Operations/Contracting-in-Disasters.

You can use this link — www.moveit.gsa.gov — for access to the General Services Administration (GSA) Transportation Management Services Solution (TMSS).   FEMA procures many of its transportation needs through GSA including: truckload services, air charter, barges, air freight, air ambulance, heavy hauler, rail, vehicle rental, truck rental, travel trailers, and mobile homes.

Please Note: There are companies that mimic services of Federal agencies, and these companies typically charge fees for services that your business can typically accomplish yourself.  Be aware that most, if not all, Federal Government services are free of charge.  If you are approached by letter, email or phone to buy access to federal contracting opportunities, always make it a practice to reach out to the appropriate Federal agency first to inquire about the validity of the service, specifically if a fee is associated with it.  An excellent source of no-cost assistance associated with navigating the government contracting process is the Georgia Tech Procurement Assistance Center (GTPAC).  You may contact GTPAC via email at: gtpacatl@innovate.gatech.edu.  If your business is located outside the state of Georgia, you can find similar no- or low-cost help at: http://www.aptac-us.org/find-a-ptac.

Helpful Tips For Contractors:
  • Get to know the Federal Business Opportunities website www.fbo.gov (known as FedBizOpps or FBO). FedBizOpps is the single point-of-entry to search, monitor, and retrieve Federal procurement opportunities. You will also find subcontractor, supplier and teaming opportunities here.
  • Monitor the Department of Homeland Security’s planned contract opportunities on the DHS Acquisition Planning Forecast System (APFS) located at: http://apfs.dhs.gov/.
  • Accept the government purchase card or credit card. The government buys more than $5 billion in goods and services annually using purchase cards.  In emergency contracting situations, a great many government purchases are micro-purchases less than $3,500.  (Note: Effective Aug. 29, 2017, the micro-purchase threshold for disaster recovery contracting was raised to $20,000.  See details at: http://contractingacademy.gatech.edu/2017/09/05/micro-purchase-and-simplified-acquisition-thresholds-raised-for-hurricane-harvey-response.)
  • Promote your business in electronic catalogs. If you are a GSA Schedule contractor, GSA Advantage and other electronic commerce initiatives will allow you to list your products or services for government browsing.
  • Publish your catalog listings on your company website. Having a website allows interested buyers to access additional information regarding your company (experience, past performance record, financial stability) after reviewing product descriptions.
  • See other helpful information at: http://gtpac.org/2017/08/31/register-free-if-you-want-to-provide-debris-removal-supplies-reconstruction-and-other-disaster-or-emergency-relief.

How to survive a government shutdown

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Does your company participate in federal contracts?  Whether they’re the majority of your business or a relatively small share of your total project work, successfully enduring a shutdown in federal government activities requires preparation. This article explains how to do that.

Top tips:

  • Meet with the project’s contracting officer in advance to determine its status in the event of a shutdown.
  • Review the contract to determine what shutdown-related costs are billable.
  • Collect as much information about the project as possible.
  • Remedy any payment concerns in advance.
  • Request a time extension on the contract.
  • In the event of a shutdown, unless otherwise ordered, show up to the site and document being turned away or that the site was inaccessible.
  • Prepare to increase capacity to the project once the shutdown ends.

Read the full article here: http://www.constructiondive.com/news/how-to-survive-a-government-shutdown/504122/

 

4 things for contractors to remember in planning for a possible government shutdown

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With six weeks left in fiscal 2017, budget experts are warning federal contractors that it’s only prudent to begin preparations for the possibility of a government shutdown on Oct. 1.

Lawmakers will have just a few weeks left to develop a budget compromise when they return from August recess before the current spending resolution expires Sept. 30.

House lawmakers passed the Make America Secure Appropriations Act, a “minibus” of spending bills that sets appropriations for the departments of Defense, Energy, Interior, Veterans Affairs and other agencies, as well as the legislative branch. The Senate has passed no appropriations bills yet.

But as budget experts encourage federal contractors to begin preparing for the worst, there is some good news.

Agency contracting officers and senior leadership are more practiced in handling these situations now than they did at the start of the last shutdown in October 2013.

Keep reading this article at: https://federalnewsradio.com/government-shutdown/2017/08/4-things-for-contractors-to-remember-in-planning-for-a-possible-government-shutdown/

Find Davis-Bacon in federal construction contracts, not in a supermarket

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There is hickory bacon.  There is turkey bacon.  And then there is Davis Bacon.

The first two can be found in the meat department of your local supermarket.

The last one — Davis Bacon — is found in federally-funded construction contracts.  If you’re bidding on a federal contract or subcontract, you’d better educate yourself about this requirement.

The federal Davis-Bacon Act (DBA) applies minimum prevailing wage classifications for all federally-funded or assisted construction projects.  (Note that the Federal Acquisition Regulation – the FAR – now refers to the Davis Bacon Act as “Wage Rate Requirements – Construction.”)

The U.S. Department of Labor creates wage classifications by the type of project for a specific type of worker.   (Although not the case in Georgia, also be aware of the fact that some state governments have adopted “little DBAs” requiring prevailing wages on state-funded public works projects.)

The worker classifications are crafted with broad job scopes, in order to be over-inclusive.  These classifications have drawn the ire of many private construction firms, who complain about what they consider over-payment for non-specialized labor (i.e., paying a wire runner as a journeyman electrician).  So, while many favor the DBA’s heavy wages – it can be crippling to an unprepared private firm’s profit margin.

In order to prepare, a construction professional must read and absorb the federal wage classifications that apply on their project – before bidding.  Wage classifications are prepared by state and by project, and are included in all federally-funded construction work.

If you are bidding a contract in the State of Georgia, you’ll need to check out the Georgia classifications.  For example, if you were building a non-residential structure, such as a government building, in Bibb County, you can see the applicable wage rates here.

If your Bibb County bid needs to include ironworkers to install your structural steel, you would need to bid them per hour at $24.04, plus $9.86 in fringe benefits (insurance, fringe, or even cash).  There are no real boundaries here – if a worker is involved in structural steel work, that worker is to be paid as an ironworker. If a contractor does not plan for this broad application, you’ll be facing penalties that are spelled-out under the Wage & Hour Act or Contract Work Hours and Safety Standards Act.  The penalties are stiff, providing for up to two times the amount of the unpaid or underpaid wages, plus interest.

The lesson here?  Like with all things involving government contracting, do your homework before jumping in with both feet.  To obtain assistance, check with a representative of the Georgia Tech Procurement Assistance Center (GTPAC) nearest you.  With proper preparation, you’ll be able to bid correctly, win a contract or subcontract, and then be able to bring home the real bacon.

© 2010-2017 –  Georgia Tech Procurement Assistance Center – All Rights Reserved.

Federal acquisition scorecard shows which agencies are spending more in 2017

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Govini released its annual scorecard, offering insights into federal spending trends, including which agencies are spending, what the money is being spent on and what contractors agencies are working with.

With a new administration, there have been some changes throughout the government. The most notable and unexpected of these changes were within the Army and the Department of Health and Human Services.

“The Army saw a big uptake in contract spending,” Matt Hummer, director of analytics for Govini, said. This uptake is the “first positive growth seen in the Army’s spending in a long time.”

Keep reading this article at: http://www.federaltimes.com/articles/federal-acquisition-scorecard-shows-which-agencies-are-spending-more-in-2017

Download Govini’s report at: http://www.govini.com/research-item/2017-federal-scorecard/

 

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