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Here’s why the management consulting business model is broken

January 13, 2016 By Andrew Smith

Disruption is coming to the world of management consulting. Recently, I documented the many disruptive forces at work on the consulting business model. Cracks in the façade are showing, revealing a business model more fragile than agile.

management consultingMany federal management consulting firms do, if fact, have a track record for responding to change — when things are good. But even with sequestration and budget cuts in recent years, things have still been pretty good. But change is coming.

Our business model is fragile. Two factors contribute to its fragility. First, there is a subtle but important disconnect today between what consultants are selling and what clients are buying. Second, as consultants gain experience, they aspire to spend less time with their federal clients—not more.

Keep reading this article at: http://about.bgov.com/blog/these-two-factors-explain-why-the-management-consulting-business-model-is-broken/

Filed Under: Contracting Tips Tagged With: agile services, contract management, disruption, program management

VA eyes veteran-owned small businesses for management contracts

January 27, 2014 By ei2admin

The Veterans Affairs Department plans to tap veteran-owned firms for management expertise and business support services through a five year contract starting in June.

VA said its Agile Delivery of VA Imminent Strategic and Operational Requirements — or ADVISOR — indefinite delivery, indefinite quantity contract will cover four service groups: oversight, improvement, data and analysis, and training.

Keep reading this article at: http://www.nextgov.com/defense/2014/01/va-eyes-vet-owned-firms-management-contracts/77435/ 

The presolicitation is at: https://www.fbo.gov/index?s=opportunity&mode=form&id=a7869f47077b956ed05172ed9095fd9a&tab=core&_cview=0 

The original sources sought announcement (february 2013) is at: https://www.fbo.gov/index?s=opportunity&mode=form&id=296cfbf4dd83ffafe2491b7ebfa12366&tab=core&_cview=1 

Filed Under: Contracting News Tagged With: contracting opportunities, program management, project management, SDVOSB, VA, veteran, veteran owned business

Pentagon leaders put support contractors on notice for deep cuts

June 19, 2013 By ei2admin

Defense Secretary Chuck Hagel and his top budget deputy on Tuesday signaled they intend to make deep cuts in contractor personnel who help manage programs in almost every sector of the Pentagon bureaucracy.

The Defense Department today employs an estimated 700,000 service contractors who, in many cases, work side-by-side with the civilian and military workforce at installations across the country and worldwide.

The new shift can be expected to return some clout into the hands of civil service employees who work at half the cost or even less, reversing a decades-old trend of farming out program management increasingly to pricey hired hands in the defense industry.

“We are currently reviewing all contractors, all the contracts we have,” Hagel testified at a Senate Appropriations Defense Subcommittee hearing.

Keep reading this article at: http://www.govexec.com/contracting/2013/06/pentagon-leaders-put-support-contractors-notice-deep-cuts/64715/?oref=national_defense_nl 

Filed Under: Contracting News Tagged With: budget cuts, DoD, federal contracting, program management, sequestration, service contracts, spending, support services

Procurement survey finds room for savings, process improvements

June 21, 2010 By ei2admin

Fe

deral procurement managers estimate they can save up to $158 billion annually by implementing more efficient acquisition processes and stronger program management training, according to a survey released on Monday.

Meritalk, an online community of government information technology specialists, canvassed 200 civilian, defense and private sector contracting professionals in January and found ample opportunities for cost savings. For example, 28 percent of federal programs are not delivered on time or on budget, respondents said. The governmentwide goal, as set by a 2004 Office of Management Budget memorandum, is 10 percent.

Managers suggested they could cut 30 percent from their annual procurement budgets through operation and system-level improvements. Specifically, the survey found more agencies should be using mandated project management methods such as earned value management, and capital planning and investment control.

Only 17 percent of respondents consistently used earned value management, a technique to objectively measure project progress. Even fewer officials — 14 percent — used capital planning and investment control, a structured and integrated approach to managing IT investments.

“The White House is looking for 5 percent savings from agencies,” said Steve O’Keeffe, founder of MeriTalk. “Everyone is looking to save money, but we need to start by enforcing the rules and mandates that we already have.”

Agencies that consistently use the two techniques gave themselves high grades for the maturity of their acquisition processes. But, only 12 of all managers gave their agency procurement systems an “A,” with the majority settling for a “B” or “C,” the survey showed. The most frequent challenges officials outlined were process deficiencies, poor program management and inadequate staffing.

Another problem could be training. Nearly 60 percent of officials confessed to a lack of program management and earned value management training, while 85 percent said they were not schooled in capital planning and investment control.

At least one key lawmaker was troubled by the report’s findings. “The federal government must embrace efficiency as a means to not only save money, but also bring better service to the American people,” said Sen. Tom Carper, D-Del., chairman of the Senate Homeland Security and Governmental Affairs Subcommittee on Federal Financial Management, Government Information, Federal Services and International Security. “This report clearly outlines how — with more efficient management processes and better training of personnel — we can realize significant savings for American taxpayers.”

Last month, the Senate passed Carper’s Information Technology Investment Oversight Enhancement and Waste Prevention Act. The bill requires the Office of Management and Budget to provide quarterly public updates on the cost, schedule and performance of all major IT investments using earned-value management data. The bill has now been referred to the House.

The survey also indicated some mixed feelings among acquisition executives on two of the Obama administration’s top contracting priorities.

Only 36 percent of respondents said increasing the number of firm fixed-price contracts would improve program efficiency. Thirty-eight percent disagreed with the approach, in which officials set a price for the work at the outset to avoid ballooning costs, and 26 percent were undecided.

Half the contracting officials said they wanted to increase top-down transparency. But, most are not taking the plunge. Only 18 percent indicated that they were leveraging technology innovations, such as Web 2.0. And just 21 percent of officials said their agency encouraged citizen participation and actively responded to public inquiries.

“We need to begin to change our behavior and not just talk about it,” O’Keeffe said.

—  by Robert Brodsky – GovExec.com – June 14, 2010

Filed Under: Contracting News Tagged With: earned value, federal contracting, government trends, procurement reform, program management, transparency

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