Georgia Tech Procurement Assistance Center

Defense dominates experiment in streamlined bidding for innovation

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Streamlined solicitations for innovative commercial products and services, known as commercial solutions openings are beginning to take off in the Defense Department. Even the General Services Administration’s CSO service, which is open to all agencies for a fee, so far has been dominated by Defense users.

CSOs aren’t as well known or broadly used as their procurement-innovation cousin, other transaction authority, which gives agencies the ability to strike contracts outside the Federal Acquisition Regulation for research, prototypes and production to obtain technology from nontraditional defense contractors. Eleven agencies including Defense have OT authority.

GSA’s CSO holds the potential to bring civilian agencies, most of which don’t have OT authority, the ability to reach out to and select suppliers unencumbered by the Federal Acquisition Regulation. So far, civilian agencies haven’t been biting, but Pentagon organizations are, even though they have their own CSO provider.

The very first GSA CSO customer was none other than the Defense Innovation Unit, a once-experimental buying organization that invented CSOs. Originally designed to lure emerging companies to work for the Pentagon by easing the pain of federal procurement processes, the Defense Innovation Unit Experimental, or DIUx, lost the X last summer, when it was designated a permanent outpost for testing defense buying boundaries.

Keep reading this article at: https://www.govexec.com/excellence/management-matters/2019/03/defense-dominates-experiment-streamlined-bidding-innovation/155373/

The Air Force handed out 242 contracts in two weeks, and it might change everything

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The Air Force awarded a contract in three minutes. That’s astronomically shorter than the three months it usually takes the service to award a small business contract.

The breakneck pace was thanks to the Air Force’s Pitch Day, which awarded 51 contracts to companies that have little or no experience with the military. The service doled out $3.5 million to those small businesses on Wednesday — each in 15 minutes or less. The first installments of the companies’ contracts were in their bank accounts almost immediately.

While Pitch Day signifies a momentous increase in acquisition speed, it also indicates a sea change in the way the Air Force looks at the future of its industrial base and who it spends its money on.

“Our goal in the Air Force is to start expanding the industry base again,” Will Roper, Air Force assistant secretary for acquisition, technology and logistics, told reporters Thursday. “That is my moonshot for this year. We’ve got to do it on two sides: One strategy for the primes, one strategy for the dual-use or commercial companies.”

Keep reading this article at: https://federalnewsnetwork.com/air-force/2019/03/the-air-force-just-handed-out-242-contracts-in-two-weeks-and-it-might-change-everything/

GAO continues to expand the scope of ‘prototypes’ that DoD may buy through OTs

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The most common question heard about the recent boom in the Department of Defense’s spending on other transactions, or OTs, is a simple one:  How can I get in on the action? 

Understandably, OTs – essentially contracts not subject to procurement laws or regulations like the Federal Acquisition Regulation (FAR) – are very enticing to traditional and nontraditional contractors alike.  And opportunities for OTs abound, particularly since Congress, in 2015, codified the DoD’s authority to award OTs for “prototype projects” (previously just a pilot program) and expanded that authority to include OTs for follow-on production efforts.  But there are limits to DoD’s authority, foremost being that, in general, DoD may acquire only “prototypes” through OTs, and must buy all other goods and services through traditional, FAR-based procurement contracts.

So the question of how to access DoD’s surge in OT funding hinges, among other things, on more specific questions:  What exactly is a “prototype”?   And do my offerings fit the bill?

The answers, it seems, are quite a lot and probably yes.  Congress provided very little legislative direction, instead leaving to DoD the decision over just how broad its authority might reach.  Unsurprisingly, it took a broadminded approach to the term “prototype,” and so far the Government Accountability Office (GAO), as legislative oversight, has upheld the DoD’s expanding interpretation.  This continued in ACI Technologies, Inc., B-417011, Jan. 17, 2019, 2019 CPD ¶ 24, where the GAO found the DoD properly awarded a prototype OT for, among other things, training programs, skills development outreach, and the drafting of best practices for fostering commercial development of secure electronic parts.

Specifically at issue in ACI Technologies was a solicitation by the Naval Surface Warfare Center seeking a firm to manage a consortium of contractors in support of the agency’s Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S2MARTS) initiative.  This initiative’s stated goal is to obtain “innovative technological solutions to address current and future security threats in the electromagnetic spectrum (EMS), trusted microelectronics, and strategic missions hardware environments,” which includes “developing a relationship with industry and academia to establish streamlined processes for obtaining innovative, State-of-the-Art (SOTA) technologies” and “establishing an agile and collaborative working relationship amongst the Government and academia/industry.”

Keep reading this article at: https://www.jdsupra.com/legalnews/gao-continues-to-expand-the-scope-of-91815/

For more information about OTs, see the Defense Acquisition University’s OT Guide at: https://aaf.dau.mil/ot-guide/

How one company changed to meet new IT contract styles

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Federal agencies are changing the way they structure IT contracts, asking for more proof-of-concept and capability up front instead of basing decisions on a portfolio of past work.

“We’re increasingly seeing requests for proposals, and what the RFP is asking for is, instead of a written response, show up with a team and deploy a product by the end of the day,” said Charles Onstott, senior vice president and chief technology officer at SAIC, in an interview with Federal Times. “What that challenge is demonstrating is your ability to do that, and then that would lead to follow-on work.”

To meet the new contracting requirements, SAIC in October 2018 created its Innovation Factory, a component of the company that relies on innovative and fast working teams of IT professionals to meet current contract requirements, prepare to bid on potential contracts and experiment with new products.

“We launched this really in response to some of the major trends that we’re seeing in the federal government, and one of them is to do app modernization, but to do it rapidly in an incremental delivery fashion,” said Onstott.

“The other is [the Department of Defense’s] push to do more agile across DoD, agile acquisition.”

Keep reading this article at: https://www.federaltimes.com/it-networks/2019/02/27/how-one-company-changed-to-meet-new-it-contract-styles/ 

DARPA’s pilot project aims to increase funding opportunities in SBIR and STTR programs

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Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) are the principal set-aside programs for small business participation in federal research and development funding, yet the requirements for administering and managing these programs have not changed significantly in decades.

To keep pace with discovery in science and technology worldwide, DARPA now intends to release SBIR/STTR opportunities on an out-of-cycle basis, separate from the three pre-determined announcements traditionally issued directly through the Department of Defense (DoD). The change is expected to reduce the overall time from opportunity announcement to contract award.

Prior to the change, the timeline for SBIR/STTR funding opportunities was managed independently of DARPA’s primary technology programs, which resulted in small businesses being isolated from the benefits associated with integration into established program communities. Under the terms of the pilot program, however, DARPA will institute timesaving measures to speed program integration, such as Direct to Phase II authority, which allows the agency to bypass Phase I research requirements once performers provide satisfactory documentation of feasibility, and/or proof of scientific merit, technical merit, and commercialization potential.

DARPA will also seek to identify SBIR/STTR Phase II awardees with a compelling go-to-market strategy for participation in a newly created commercialization accelerator. The DARPA accelerator will provide additional funding to employ one entrepreneur-in-residence or business development lead who will offer the awardee direct support for activities including, but not limited to, customer engagement planning, market analysis and mapping, competitive analysis, techno-economic analysis, IP securement strategy development, and financial plan creation.

“It’s essential to change our acquisition practices to mirror the commercial marketplace if we hope to attract revolutionary companies that normally avoid working with the federal government,” said Dr. Steven Walker, director of DARPA. “This move will provide DARPA the flexibility to operate at a much faster pace than traditional SBIR/STTR contracting cycles have historically allowed.”

Congress established the Small Business Innovation Research (SBIR) Program in 1982 to provide opportunities for small businesses to participate in federal government-sponsored research and development. Since that time, DARPA has leveraged SBIR awards to promote and sustain small business innovation as well as foster the development and transition of critical national security capabilities.

Full details regarding DARPA’s SBIR/STTR programs and associated Broad Agency Announcements are available at: https://www.darpa.mil/work-with-us/for-small-businesses.

Source: https://www.darpa.mil/news-events/2019-03-01

See DARPA’s 10 focus areas for small businesses here: https://www.nextgov.com/emerging-tech/2019/03/darpa-highlights-10-focus-areas-innovative-small-businesses/155279/

$3.6 million settlement resolves procurement fraud investigation involving 8(a) firm

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VMJ Construction, LLC (VMJ) and its owner, Colorado resident Michael T. Vigil, as well as Maryland-based Vigil Contracting, Inc. (Vigil Contracting) and its operations manager, John J. Vigil, have agreed to pay the United States $3.6 million to resolve allegations that they defrauded the Small Business Administration (SBA) 8(a) Business Development Program.

The SBA’s 8(a) Business Development Program for economically and socially disadvantaged small businesses serves dual roles.

  • First, the program helps socially and economically disadvantaged small business owners gain access to valuable federal contracts, thereby promoting economic and social mobility.
  • Second, the program saves taxpayers money by spurring a competitive marketplace.  By promoting the development of small businesses, the 8(a) Program helps prevent the formation of monopolies that would stifle innovation and restrict consumers’ ability to negotiate lower prices.

It is important that the 8(a) Program is reserved only for companies that actually meet the program’s criteria because misuse of the program deprives legitimate 8(a) Program participants of valuable economic opportunities and undermines the integrity of the program.

There are several rules that businesses in the 8(a) program must abide by.

  • The socially and economically disadvantaged owner of the business must manage the day-to-day operations of the company and have responsibility for the long-term decision-making for the company.
  • 8(a) Program applicants must also truthfully disclose any affiliation with other businesses so that SBA may accurately assess whether the applicant meets the definition of a small business, and whether the applicant shows potential for success and the ability to perform the requisite percentage of the contracts secured through the Program.
  • Businesses also cannot remain in the 8(a) Program indefinitely; after nine years, they graduate from the program and are no longer eligible to bid on 8(a) contracts.

VMJ was accepted into the 8(a) Program in 2011.  Michael T. Vigil, who is Hispanic, was the 91% owner of VMJ, and was the socially and economically disadvantaged individual upon which VMJ based its application to the 8(a) program.  John J. Vigil was a 9% owner of VMJ.  John J. Vigil was also the operations manager of Vigil Contracting.  Vigil Contracting is a 2011 graduate of the 8(a) Program.  Since 2011, Vigil Contracting has not been eligible to bid for contracts reserved for 8(a) program participants.

The United States contends that VMJ made false statements to the SBA regarding its eligibility to participate in the 8(a) program.  Specifically, VMJ relied almost exclusively upon Vigil Contracting to bid on and complete the work awarded to VMJ under the 8(a) program.  VMJ used Vigil Contracting’s bonding, office space, employees, contractors, software, computers, and vehicles.  Vigil Contracting employees and contractors, including John J. Vigil, made the high-level business decisions of VMJ and managed the day-to-day operations of VMJ.   Michael T. Vigil did not control VMJ, did not set the long-term policy, nor manage the day-to-day management of the business.  VMJ knowingly misrepresented these facts to SBA, in both VMJ’s initial application to participate in the 8(a) program and in an annual update to SBA.  As a result of the deception, the Army, the Navy, and the Department of Agriculture awarded VMJ several federal government contracts set aside for 8(a) program participants.

“The United States uses these set-aside contracts for a clear reason — to help small businesses owned by economically and socially disadvantaged individuals.  This program continues the promise of the American Dream by helping new small businesses get on their feet, and with more businesses on their feet, our markets are healthier and more competitive,” said U.S. Attorney Jason Dunn. “When companies lie about their eligibility to get these contracts, they prevent other deserving small businesses from getting the assistance that Congress intended.”

Source: https://www.justice.gov/usao-co/pr/36-million-settlement-resolves-procurement-fraud-investigation-against-colorado-and

GTPAC hosts ‘Creating the Next: Defense Innovation Conference’

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The Georgia Tech Procurement Assistance Center (GTPAC) recently sponsored an event where 200 small innovative tech companies learned about special funding opportunities and programs that are available to small businesses at the Department of Defense (DoD), including the Small Business Innovative Research (SBIR) and Small Business Technology Transfer (STTR) programs.

“The goal of the January 14th conference was to help small companies, especially small technology companies and innovative manufacturers, learn about how they can do business with the Defense Department and its various components,” explained Andrew Smith, GTPAC’s program manager.  “We wanted to have an event where we could educate the small business community about DoD opportunities.”

GDX connects Georgia businesses with each other and with DoD contract opportunities.

The event featured numerous prominent speakers.  Khai Edouard, the co-founder of the technology consulting firm The Simple Vue, spoke about the Georgia Defense Exchange (GDX), a technology platform that was built for the Georgia Department of Economic Development that helps government defense contractors network with other contractors and find contracting opportunities with DoD.  Contractors can access the Georgia Defense Exchange at https://gdx.georgia.org

The National Security Technology Accelerator prospects, vets, and develops technology.

Tim Greeff, the founder, and CEO of the National Security Technology Accelerator (NSTXL), which prospects and develops innovative technology for the Department of Defense, spoke about Other Transaction Authority (OTA) contracts, and how DoD utilizes OTAs to fund research and prototype development.

Adele Navarrete, senior corporate counsel for the Logistics Management Institute, a major not-for-profit defense contractor, provided attendees with insights and advice on how to win business with the Department of Defense.  Ms. Navarrete later joined an industry panel with Raven Smith, senior regulatory compliance analyst with Lockheed Martin, and John Roman, senior vice president at Huntington Ingalls Industries – Technical Solutions.  They discussed the important attributes and qualities defense contractors look for in subcontractors.

Panelists, representing defense industry giants, provided attendees with subcontracting insights.
Lisa R. Sanders with U.S. Special Operations Command discussed technology problems she’s counting on industry to solve.

The keynote address was delivered by Lisa R. Sanders, the director of science and technology for the U.S. Special Operations Command (USSOCOM).  As a defense intelligence senior leader, Ms. Sanders is responsible for all research and development funded activities for the U.S. Special Operations Forces at MacDill Air Force Base.  Ms. Sanders gave an overview of USSOCOM’s technology and purchasing priorities, and the difficult technology problems Special Operations Forces needs industry to solve.  Ms. Sanders also gave an overview of how industry could engage and do business with the USSOCOM.

After the keynote speech, attendees were able to network with one another and forge potential business relationships.

Four concurrent workshops were also held in the afternoon sessions that covered a variety of topics of interest to government contractors, including how to develop successful bids and proposals and how to comply with DoD cybersecurity requirements.

“Overall, I’m very proud of the event and how industry and government came together to provide such excellent information and training to our attendees,” said Mr. Smith.  “I think everyone came away learning a lot about how to best engage the Department of Defense if you are a small technology company or manufacturer with the next great product or idea.  I firmly believe Georgia Tech can help connect the next great idea to those in DoD who need that idea and solution — and that is going to keep our nation safe.”

Copies of all presentations made at the Jan. 14, 2019 event — along with related resource materials — can be downloaded from: https://gtpac.org/training-video/

 

‘Eliminate most DoD small business set-asides,’ says Section 809 Panel

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The Section 809 Panel has recommended that Congress eliminate most small business set-asides for DoD acquisitions.

The Panel would replace the longstanding set-aside system with a meager five percent small business price preference.

For small government contractors, this recommendation is the policy equivalent of a five-alarm fire. Small contractors may need to fight hard to save the set-aside system.

Get ready for a battle.

Keep reading this article at: http://smallgovcon.com/statutes-and-regulations/eliminate-most-dod-small-business-set-asides-says-section-809-panel/

Find all of the Section 809 Panel’s reports here: https://section809panel.org/media/updates/

DoD is now taking applications for 2019’s Rapid Innovation Fund

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The Department of Defense has opened applications for the 2019 edition of its Rapid Innovation Fund (RIF) — a program that offers up to $3 million in funding for “innovative technologies” that “meet critical national security needs.”

The defense agency posted its broad agency announcement on FedBizOpps on Jan. 11, 2019 and will be taking white paper submissions until March 8, 2019.

What’s the DOD looking for?

Per the announcement, the agency is seeking tech solutions to support the ambitions of the National Defense Strategy.

Keep reading this article at: https://www.fedscoop.com/rapid-innovation-fund-2019/

Gain insights into this development by visiting resources posted at https://gtpac.org/training-video from GTPAC’s Jan. 14th Defense Innovation Conference.

See an explanation of DoD’s Rapid Innovation Fund (RIF) at: https://business.defense.gov/Programs/RIF/

5 ‘bold’ recommendations to improve DoD acquisition

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Congress and the Defense Department are paying close attention to recommendations coming from the Section 809 panel to change the military’s acquisition process.

The House and Senate Armed Service committees added every idea from the group’s May 2017 interim report as well as many of the recommendations from the panel’s January 2018 volume one report to recent Defense authorization bills, said David Drabkin, the panel’s chairman.

“During this process, we have met frequently with both the House Armed Services Committee, the Senate Armed Services Committee, and on occasion we have met with the House Appropriations Defense subcommittee and Senate Appropriations subcommittee on Defense, and have worked closely with the department as you can see on the panel, three of the department’s acquisition executives have been a part of the panel itself,” Drabkin said Tuesday during the roll out of the volume 3 recommendations in Washington, D.C. “We can’t assure Congress will accept our work, but we have an indication that they are very interested. As you look around the room, you can see members from the staff of the HASC and SASC sitting in the meeting today.”

So with the congressionally-mandated group of public-private sector experts issuing their third and final set of recommendations on Jan. 15th detailing 58 new ones across 13 sections, the likelihood of many of these proposals advancing is good. In all, the panel made 93 recommendations, provide implementation plans and legislative language across more than 1,000 pages and three volumes of work since 2016.

Keep reading this article at: https://federalnewsnetwork.com/acquisition/2019/01/5-bold-recommendations-to-improve-dod-acquisition/

See the 809 Panel’s final report here: 

See the 809 Panel’s earlier reports here: https://section809panel.org/media/updates/ 

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