Georgia Tech Procurement Assistance Center

Companies barely had to compete for half of the federal contracts awarded in Puerto Rico so far

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Now that Puerto Rico is moving into recovery and rebuilding after the Hurricane Maria disaster, billions of dollars in federal disaster spending are flowing to the island.  Estimates put hurricane damage at $95 billion, and Puerto Rican Gov. Ricardo Rosselló is asking various federal agencies for $94 billion in grants.

With this much public money on the line, monitoring how U.S. tax dollars are spent in the recovery will be crucial to prevent waste, fraud, and shoddy work. The best way to do that is by awarding contracts through the open bidding process, which allows the largest number of businesses a chance to compete to offer the best deal. These types of contracts generally require more scrutiny and oversight than no-bid deals.

So far, competitive bidding hasn’t been a top priority for federal agencies responding to Hurricane Maria. Nearly half of the 540 federal contracts signed so far (as of November 16), totaling $252 million, were awarded outside the open bidding process, according to federal procurement data.

Keep reading this article at: https://www.vox.com/policy-and-politics/2017/11/17/16618476/puerto-rico-federal-contracts

VA needs better oversight of major construction projects, IG tells House panel

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The Veterans Affairs Department used inaccurate milestones for several of its health care center construction projects and hasn’t properly tracked project costs, said Linda Halliday, VA assistant inspector general for audits and evaluations before a Nov. 20 House panel.

“VA needs better oversight, improved capital planning and stricter asset management to gain assurance that it can address construction and lease challenges more effectively,” Halliday said at the House Veterans Affairs Committee hearing.

As of August 2013, only four of seven leases that came under IG review for an Oct. 22 report (.pdf), had been awarded and no HCCs had been built, despite VA’s target completion date of June 2012, Halliday said in prepared testimony.

Keep reading this article at: http://www.fiercegovernment.com/story/va-needs-better-oversight-major-construction-projects-ig-tells-house-panel/2013-11-21

 

 

Contractors start to feel the shutdown pain

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As the government shutdown drags on, contractors both large and small are raising alarms about ripple effects on their workforces and cash flow that threaten to worsen if the budget stalemate continues.

The Aerospace Industries Association on Thursday called on Congress to accelerate the process toward a solution or risk private-sector furloughs and certification delays that could wreak havoc on schedules for aircraft delivery and space launches.

“A number of our member companies have notified us that if this shutdown continues — which is affecting all of the Defense Department’s functions involved in contracting – they will be forced to furlough tens of thousands of workers,” said AIA President and CEO Marion C. Blakey in a statement. “The most immediate concern is the absence of Defense Contract Management Agency inspectors…..required to audit and approve parts and operations throughout the manufacturing process for military products. The manufacturing process must stop if these inspections and certifications are not performed, choking off the flow of new equipment to our armed forces.”

Keep reading this article at: http://www.govexec.com/contracting/2013/10/contractors-start-feel-shutdown-pain/71356

How to manage a Federal contract during the Government shutdown

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In the wake of the Government’s October 1, 2013 shutdown, clients of the Georgia Tech Procurement Assistance Center (GTPAC) have been asking our counselors a lot of questions about the implications.  Here is a summary of the advice we are giving:

  • Generally, if you are competing for a Federal contract, everything is on hold.  Watch FedBizOpps (www.fbo.gov) where a majority of Federal solicitations are posted to see updates on the status of anything you are bidding on, or have bid on recently.  Don’t expect up-to-the-minute information since so many Federal employees are on furlough, but that’s the best place to check on the status of most Federal procurements.  If you discover that the procurement official assigned to managing the solicitation in which you are interested is not on furlough, an inquiry by email is permissible.  Be patient in waiting for a reply — remember that literally hundreds of thousands of Federal employees are on furlough status at the moment.
  • Some procurements, related to essential Government functions, are proceeding with minimal disruption, but expect delays.
  • If you have an active Federal contract, it is imperative that you comply with all contractual terms and conditions, and that accurate records of shutdown-related impacts be maintained.  Knowing the terms and conditions of your contract inside-out will pay-off right now.  Be sure to read the rest of this article for tips on managing an active Federal contract.

Specific contractual actions to protect your company’s interest will vary by contract type and contract terms.  All have to do with the specific provisions contained in your contract.   Some things to consider include:

Cost-Type/Fixed Price-Type (incrementally funded) Contracts

  • Ensure compliance with the notification requirements of the “Limitation of Cost” or “Limitation of Funds” provision of the contract (cost-type contracts).
  • Develop plans to minimize the impact to the customer (the end-user within the Government) and your firm (i.e., curtail non-essential program elements to stretch program funding) and request a Stop Work be issued by the Government’s Procurement Contracting Officer (PCO or just CO) for the non-essential elements.
  • If a Stop Work is not issued, notify the PCO/CO of potential delays under “Government Delay” and/or “Excusable Delay” provisions. (fixed price-type contracts).
  • Provide direction to your supplier base consistent with the PCO/CO’s direction.
  • Ensure Government payments reflect any adjustments due you under “Prompt Payment” provisions.
  • Segregate costs as documentation for a potential delay and disruption under the Request for Equitable Adjustment (REA) provision of your contact.

Fixed-Price Type Contracts (fully funded)

  • The Government shutdown does not have an immediate impact on contract performance but, over time, the unavailability of Government inspectors or support could lead to delays and disruptions and should be documented for future Request for Equitable Adjustment (REA) consideration.
  • Ensure Government payments reflect any adjustments due you under “Prompt Payment” provisions.

Other Items to Consider

  • Proposals and unexercised options could expire during an extended shutdown period.  If it is in the best interest of your firm, a non-solicited proposal extension/option exercise date extension could be provided to the Government.
  • The Government may not be able to provide inspectors (e.g., Defense Contract Management Agency) under a shutdown and delay, so disruption impacts should be captured and documented for a future Request for Equitable Adjustment (REA).
  • The Anti-Deficiency Act (ADA) does not allow the government to spend money that is not obligated, therefore and firms should be leery of      non-warranted individuals requesting you to work and get paid later; e.g., contracting officer representatives (CORs) or other Government officials.  Only COs and PCOs can make binding commitments.
  • Be mindful of mission creep, where the Government requests you to perform additional contract tasks due to Government personnel unavailability.
  • The Government shutdown potentially impacts to your rates and long-range plans based on prolonged funding gaps and/or stop work orders, so alert your accounting staff to document all impacts of the shutdown.

As always, feel free to contact a GTPAC procurement counselor if you have questions or need guidance.  All contact information is posted at: http://gtpac.org/team-directory.

 

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