Georgia Tech Procurement Assistance Center

Pentagon requests voluntary refund of millions of dollars from contractor TransDigm

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The Army and Defense Logistics Agency will both seek reimbursement on millions of dollars from contractor TransDigm, following an Inspector General report into the company’s contracts with the Pentagon.

TransDigm, which produces specialized parts for aircraft such as pumps, valves and batteries,, earned “excess profit” 112 of 113 contracts reviewed by the IG’s office, per a report released last Wednesday. The IG found that the company received $16.1 million in excess profit between January 2015 and January 2017, with a cost that could go up due to spare parts in the future.

The 112 contracts, signed with the Army or DLA, had profit margins ranging from 17 to a whopping 4,451 percent; The IG’s office calls profit percentages of 15 percent or below to be “reasonable.”

Keep reading this article at: https://www.defensenews.com/industry/2019/02/27/pentagon-requests-voluntary-refund-of-millions-of-dollars-from-contractor-transdigm/

Pentagon auditors advised to better monitor contractor business systems

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The Defense Department’s management and auditing sub-agencies need to clarify their roles and improve the timeliness of their examinations of contractor accounting, estimating and purchasing systems, a watchdog found.

“DoD currently lacks a mechanism based on relevant and reliable information, such as the number of [contractor business system] reviews that are outstanding, the risk level assigned to those systems, and the resources available to conduct such reviews,” the Government Accountability Office wrote in a report released on February 8th.

Citing directives from Congress over the past decade, GAO reviewed data from the Defense Contract Management Agency and the Defense Contract Audit Agency and found that the DCAA, for example, conducted few business system audits in the past six years, due, in part, to the need for it to reduce its backlog on completing incurred cost audits.

Keep reading this article at: https://www.govexec.com/defense/2019/02/pentagon-auditors-advised-better-monitor-contractor-business-systems/154758/

Draft solicitation for Pentagon’s multibillion enterprise solutions contract released

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The Pentagon took the next step in bidding out its Defense Enterprise Office Solutions contract Friday, Feb. 1st, releasing a draft request for quotations for an enterprise cloud service offering likely worth several billion dollars.

The draft solicitation indicates DEOS will be a single-award firm-fixed-price blanket purchase agreement, with a 5-year base period with two 2-year options and a 1-year option—a potential 10-year total period of performance.

Keep reading this article at: https://www.nextgov.com/it-modernization/2019/02/draft-solicitation-multibillion-deos-contract-released/154595/

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

DHS would get more power to bar risky contractors under dueling proposals

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Two House Republicans are working on legislation that would expand the Homeland Security Department’s authority to deny contracts to companies that pose cybersecurity supply chain threats while the Trump administration is pushing an even more expansive proposal.

The bill in the House will be modeled on authorities Congress gave the Defense Department in 2011 that were implemented in 2015, said Rep. Scott Perry, R-Pa., who is drafting the bill with Rep. Peter King, R-N.Y.

Under those rules, Pentagon contracting officers can bar vendors that pose a security risk from competing for contracts before they’re awarded and halt contractors from hiring risky subcontractors after an award.

Under current Homeland Security Department rules, contracting officers working on unclassified contracts can’t bar vendors before an award based on information provided by intelligence agencies, Soraya Correa, the department’s chief procurement officer, who testified before two House Homeland Security panels last Thursday.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2018/07/dhs-would-get-more-power-bar-risky-contractors-under-forthcoming-bill/149675/

Pentagon is planning another bug bounty contract

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The Pentagon is considering offering a broad bug bounty contract that would accommodate a variety of different bounty models on either short-term or continuous timeframes, according to contracting documents released earlier this month.

The move comes after two years during which the Defense Department and military services have launched five high-profile bug bounties targeting the Pentagon, Air Force, Army and the department’s travel booking system.

Bug bounties are contests in which ethical hackers are offered cash rewards for finding hackable vulnerabilities in websites, apps and other software. So far, the Pentagon and military services have paid out more than $400,000 for valid bug reports.

Keep reading this article at: https://www.nextgov.com/cybersecurity/2018/05/pentagon-planning-another-bug-bounty-contract/148292/

Pentagon seeks to limit bid protests in federal court

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The Defense Department is proposing legislation to impose new constraints on government contractors’ ability to protest federal agencies’ award decisions, including by rolling back their rights to file bid protests in federal court.

Currently, companies who believe an agency mishandled a contract award have two independent forums to file protests: the Government Accountability Office and the U.S. Court of Federal Claims (COFC). But some firms opt to take their cases to both.

If, for example, GAO denies or dismisses their protest, they still have the right to file a new claim at the COFC.

DoD’s proposal would essentially eliminate that option by requiring contractors to bring cases to COFC within 10 days of the agency’s award decision: the same deadline used by GAO. Since GAO has up to 100 days to sustain or deny a protest, a company could not wait and use the court as a backstop if it loses its case at GAO.

Keep reading this article at: https://federalnewsradio.com/defense-main/2018/05/pentagon-seeks-to-limit-bid-protests-in-federal-court/

Lockheed: Pentagon negotiators are becoming more unpredictable

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Pentagon negotiators have in recent months become more unpredictable and willing to ignore precedent, Lockheed Martin’s CFO said last week.  The seemingly new approach has slowed down talks on the latest batch of F-35 fighter jets and even on other weapons and gear that the U.S. Defense Department has been buying for decades, Bruce Tanner said.

“It’s not like negotiations were always easy, but I’ll say they were more predictable than they are today,” Tanner said in an interview Monday. “There’s just more things that are being changed or things that you thought were sort of foundational elements of negotiation that maybe weren’t up for negotiation that now seem to be up for negotiation.”

For example, he said, the government now wants companies to eat various costs they once would have been reimbursed for.

“Everyone should be interested in cost reduction, not simply not reimbursing elements of cost that you historically reimbursed,” Tanner said. “That’s a strange way to get cost reduction and, I would argue, a very short-sighted, not helpful, not healthy for the industry and ultimately not healthy for the folks in the Pentagon buying under that strategy to use that approach.”

Keep reading this article at: http://www.govexec.com/contracting/2018/03/lockheed-pentagon-negotiators-are-becoming-more-unpredictable/146432

Pentagon’s commercial cloud will be a single award — and industry isn’t happy

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The Defense Department plans to issue a single award for a commercial cloud computing contract that some analysts believe could be worth as much as $10 billion over the next 10 years.

Pentagon officials released a draft request for proposal last week that coincided with an industry day regarding the Joint Enterprise Defense Infrastructure cloud procurement, an effort that began in September.

Companies have until March 21 to submit feedback as they position themselves to compete on what is assuredly an aggressive acquisition timeline. Pentagon officials said they plan to post the final solicitation in May before awarding a single indefinite-delivery, indefinite-quantity contract in September.

Keep reading this article at: http://www.nextgov.com/it-modernization/2018/03/pentagons-commercial-cloud-will-be-single-awardand-industry-isnt-happy/146482/

Policy shift: DoD is pushing major program management back to the military

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The Pentagon has steadily been pushing milestone authority for major defense programs to the individual military services, but shifting personnel down from the Office of the Secretary of Defense will take longer.

At a Dec. 7 hearing of the Senate Armed Services Committee, Ellen Lord, undersecretary of defense for acquisition, logistics and technology, or AT&L, said her intention is to continue to hand off the day-to-day running of programs to the services, preferring her office serve as a kind of high-level group providing overall guidance.

“AT&L needs to be the strategic body with focus across the board, driving affordability and accountability, reducing timelines, and equipping the Services to execute their programs,” Lord said in prepared testimony, adding that the Defense Department awards an average of 1,800 new contracts a day and 36,000 delivery/task orders a day.

Keep reading this article at: https://www.federaltimes.com/pentagon/2017/12/11/policy-shift-dod-is-pushing-major-program-management-back-to-the-military/

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