Jan 2015
1
When Did We Start to Write the Rules
for Gov’t Contracting?
• “The cost of a public building was met by appropriations from the
treasury or through public subscription. They… seemed to have made a
fetish of keeping the public informed of the progress and cost of public
works.
• When the architect and the building commission had agreed on the
design, a herald in the marketplace invited bids for parts of the work.
The architect was expected to draw up specifications for each part and
contracts were awarded to the lowest bidders, each backed by a
guarantor. Since there is no sign of profit for the guarantors, they were
probably performing a civic service.
• Instructions to contractors were probably posted on a wooden bulletin
boards… they included requests for tenders, specifications for materials
and workmanship, the length of the working day, fines for overruns, and
procedures for the resulting lawsuits. Citizens were no less eager than
now to know what became of the taxpayers money.”
2
Daniel J. Boorstin – “The Creators”
- The Ancient Greeks in mid 5th century BC
- Discussing the building of the Acropolis
3
Acquisition Provisions in Defense Authorization Bills
90
80
70
60
50
40
30
20
10
0
FY94
FY96
FY98
FY2000
FY02
FY04
FY06
FY08
FY10
FY12
FY14
FAR and DFARS/PGI Changes
• 79 Federal Acquisition Circulars (FACs) issued since
March 2005 [Through FAC 2005-79]
+ 4
+ 1
+ 4
+ 1
+ 1
+ 10
Amendments
Technical Amendment
Revisions
Addendum [20 pages]
Thresholds Matrix [34 pages]
Corrections
• 178 Defense FAR Supplement Publication Notices1
issued since January 2008 [Through DPN 20141219]
[1 Previously Designated Defense
• 45 Open FAR Cases
FAR Supplement Change Notices]
• 46 Open DFARS Cases
These changes do not even take into account the myriad
of USD(AT&L), DUSD(A&T), and DPAP policy memoranda.
Last Change ─ 19 December 2014
Sources of FAR Changes
Legislation
IG & GAO Recommendations
Court Decisions
OFPP Policy Letters
Executive Orders
Agency Recommendations
Individual Recommendations
Industry Recommendations
Policy Changes
6
FAR
DFARS
PGI
Other Sources of Changes…
Improvements to the Process Such as BBP
BBP Guidance Roadmap
Target Affordability and
Control Cost Growth
BBP 2.0 Focus Areas
BBP 3.0 Focus Areas
Achieve Affordable Programs
Achieve Affordable Programs
Control Costs Throughout the
Product Lifecycle
Achieve Dominant Capabilities
While Controlling Lifecycle
Costs
Incentivize Productivity and
Innovation in Industry and
Government
Incentivize Productivity in
Industry and Government
Reduce Non-Productive
Processes and Bureaucracy
Eliminate Unproductive
Processes and Bureaucracy
Eliminate Unproductive
Processes and Bureaucracy
Promote Real Competition
Promote Effective Competition
Promote Effective Competition
Improve Tradecraft in
Services Acquisition
Improve Tradecraft in
Acquisition of Services
Improve Tradecraft in
Acquisition of Services
Improve the Professionalism of
the Total Acquisition Workforce
Improve the Professionalism of
the Total Acquisition Workforce
Incentivize Productivity &
Innovation in Industry
Incentivize Innovation in
Industry and Government
Defense Procurement & Acquisition Policy (DPAP)
http://www.acq.osd.mil/dpap/
Strategic Planning
Ms. Mary Thomas
Contract
Policy/
International
Contracting
(CPIC)
Mr. John Tenaglia
Defense
Acquisition
Regulations
System
(DARS)
Ms. Linda
Neilson
Director
Mr. Richard Ginman
Acquisition
Policy
(AP)
Mr. Skip
Hawthorne
Contingency
Contracting
(CC)
RDML Althea
Coetzee
Program
Acquisition
Ms. Jill Stiglich
Operations
Mr. Robert Jarrett
Services
Acquisition
(SA)
Strategic
Sourcing (SS)
Mr. Kenneth
Brennan
• Mr. Shay Assad assumed the role of
Director of Defense Pricing in June 2011.
8
Program
Development
& Implementation
(PDI)
Ms. LeAntha
Sumpter
DPAP Hot Topics and BBP
9
1. Target Affordability and Control Cost Growth Contract Pricing,
Should Cost
2. Incentivize Productivity and Innovation In Industry Contract Types
and Incentives, Source Selection, Superior Supplier, CPAR
3. Promote Real Competition
4. Improve Tradecraft in Services Acquisition
5. Improve the Professionalism of the Total Acquisition Workforce
6. Contracting in a Combat / Contingency Environment
7. Proper Use of Interagency Agreements
8. System for Award Management (SAM)
9. Contractor Business Systems including CBAR
10. Small Business
11. Commercial Items
12. Data Vulnerability
1. BBP Target Affordability and Control Cost
Growth: Change the Attitude About $
• 20 Aug 2014 Policy letter signed by AT&L (Kendall) and Comptroller
(McCord)
• Focusing on obligating all funds by the end of the fiscal year on
threat that future funding will be taken away is a “strong and
perverse motivator”
• But, if we don’t spend all of our funding, Congress reduces our
budgets
• We have to stop fighting the movement of funds from one program
to a higher priority program
• ** Managers who release unobligated funds to higher priorities will
not automatically be penalized in their next year’s budget with a
lower allocation and may be candidates for additional funding to
offset prior year reductions.”
10
Target Affordability and Control Cost Growth:
What is Should Cost?
• BBP 2.0 “Should Cost is fundamental to proactive
cost control throughout the acquisition lifecycle”
– Seek out and eliminate low-value-added program cost
– Reward those in Gov’t and Industry who do this
• Give money back to the program offices
• Incentivize cost reduction (FPIF/CPIF)’
– Every acquisition manager’s performance evaluation
should consider effective cost control including should
cost management
11
Acquisition Lifecycle Cost Control (1/3)
By Functional Responsibility
Materiel Solution
Analysis
A
B
TMRR
C
EMD
Affordability is Prime
PM
Production
O&S
Should Cost is Prime
AoA
Look for opportunities to inject competition and ways to maintain competition throughout the lifecycle
Reconstruct the program team (Gov't & KTR) for efficiency and streamlining
Disciplined RASCI
Trade-Off Analysis
Partner with your contractor(s) – motivate them to reduce costs
ID items or services contracted through 2nd or 3rd party vehicles; consider other options
Benchmark against similar DoD programs, commercial analogues, programs by same KTR
Track recent program cost, schedule, and performance trends and identify ways to reverse negative trend(s)
Examine OGC closely - especially A&AS/SETA costs & look for Gov't sourcing (labs, DCMA,...)
Consider economic order quantities
IPT Discipline
Meeting Discipline
CON
FAR Should Cost - Negotiations
CDRL Reduction - is every deliverable necessary? Who uses each one?
ID opportunities to breakout separate small business or GFE items/services
Build in contract provisions for potential off-ramps and partial transitions
Pursue contract type(s) appropriate to risk
Carefully structure contract incentives to control costs and incentivize program priorities and cost reductions
Should Cost is a PM Responsibility – but a multifunctional team effort
Success Story - Stryker
• Bundle buy concept
– Achieved economies of scale
by combining order for 294
Double V-Hulls (FY11) with
100 NBCRVs (FY12)
– Required senior leader
authority to purchase on tight
timeline
• Test cost efficiencies
– Utilize existing test data
– Combine test events
13
Realized savings: ~$18M bundle-buy; ~$7.7M test efficiencies
(FY12)
Target Affordability and Control Cost
Growth: Pricing
• December 2014, Forward Pricing Rate Proposal
(FPRA) adequacy checklist – DFARS 215.403-5
– Checklist used by contractors submitting FPRA proposals
• March 2013, Proposal Adequacy Checklist—
DFARS 252.215-7009
– Checklist sent out with each solicitation requiring certified
cost data
– Used to improve the proposals
– Flow down to Subs is optional
14
Target Affordability and Control Cost :
Performance Based Payments Tool
• DFARS 31 March 2014
• Implements a DoD Better Buying Power initiative
– Detailed guidance on DoD's PBP Analysis Tool
– Emphases the value of cash flow
– Used on fixed-price type contracts
– To review the new guide and PBP Analysis Tool v4.0 go to:
http://www.acq.osd.mil/dpap/cpic/cp/Performance_based_pay
ments.html#
• CLC 057 and CLC 026 being revised to reflect new policy
and use of PBP Analysis Tool v 4.0
15
2. BBP Incentivize Productivity and Innovation In Industry:
Align Profitability More Tightly with Department Goals
• Profit is key to motivating contractor’s to perform DoD
goals
– Currently profit is very aligned with risk
– Need to tie profit with cost-effective solutions and contract
outcomes
• BBP: Frank Kendall (AT&L): THINK & Use the appropriate
contract type
16
– CPIF and FPIF contracts show a high correlation with better cost
and schedule performance
– Always consider them and use when appropriate
– PGI 216.403-1, Jan 2014, Get actuals on prior FFP production
contracts. If actuals varied by more than 4% of negotiated, move
to FPIF
Incentivize Productivity and Innovation In Industry:
Prohibition on Cost Reimbursement
• Prohibition on the use of Cost-Type Contracts for
MDAPs in the Production Phase, 30 Sept 14
– Unless excepted by Congress, we are prohibited from
having any CR line items in an MDAP production
program
– Exception signed by AT&L and sent to Congress
• Written certification that a cost-type contract is needed and
• Steps taken to ensure the cost-type pricing is limited to only
certain line items or portions of the contract
17
BBP Incentivize Productivity and Innovation In Industry:
BBP2.0 and 3.0Guidance that Effects Source Selection
• Better define value in “best value” competitions
– Quantify how much more the Gov’t is willing to pay for proposals
above the threshold level
• Better define LPTA
– Must clearly define the minimum requirements; then select the
lowest price proposal that meets them
– If these standards are subjective, then LPTA is not appropriate
• Institute a superior supplier incentive program
– Publically acknowledge and reward top-performing defense
companies
– Use of CPAR and “other data”
18
Incentivize Productivity and Industry:
Documenting Contractor Performance
• Standardize Government evaluation factors and rating
scales for the evaluation of contractor performance, FAR 42,
effective 3 Sept 13
– Ratings: Exceptional, Very Good, Satisfactory, Marginal,
Unsatisfactory
• Everyone must use CPARS and use “Guidance for CPARS”
http://www.cpars.gov/, including A&E and Construction
• Past performance evaluations required at least annually and
at the time the work under a contract or order is completed
• FY 14 goal of 95% of implementation of past performance
– DoD is trying….. 73.58% compliance in April 13, 79.43% in Sep 13,
81.51% in Jan 14, 83.19% in April 14, 80.33% in July 14
19
3. Promote Real Competition
BBP 1.0/2.0
• Continue to emphasize continuous competition
– Competitive prototypes, dual sourcing, subcontractor
competition…
• Use open systems architecture (OSA)and manage
technical data rights
– Allows for greater competition through the lifecycle
• Effectively use prototypes to reduce risk early in the
Technology Development phase.
– Increase use of competition in early development
• Only One Offer to do effective competition
20
– Go out for 30 more days if necessary to get competition, or if
only one, do cost analysis.
21
Actions to Improve DoD Competition
•
USD(AT&L) memorandum dated August 21, 2014, “Actions to Improve
Department of Defense Competition” (PGI case to be released soon)
– Issues “Guidelines for Creating and Maintaining a Competitive Environment for Supplies
and Services in the Department of Defense.”
– Requires Contracting Officers to solicit feedback from companies that expressed interest
during the market research phase of an acquisition that resulted in only one offer on why
they did not submit an offer. (Not sure where this info will be kept)
– Require Contracting Officers to use RFI’s or Sources Sought notices before soliciting noncompetitive acquisitions and to include results of this inquiry in the applicable justification
document.
– Justifications for non-competitive follow-on acquisitions of the same supply or service,
shall include the prior J&A as part of the new J&A package to determine whether actions to
remove barriers to competitions were completed.
22
Competition
• BBP 3.0 Continues Emphasis on Competition
– Create and maintain competitive environments with direct or
subcontracting competition, or competitive pressure
– Reach out to global allies with co-research, co-development
• “Guidelines for Creating and Maintaining a Competitive
Environment for Supplies and Services in the Dept of
Defense”, August 2014
– Overcome: status quo, time constraints, scope creep,
restrictive or poor requirements, etc.
– Improve: continuous market research, keeping industry
informed, performance based requirements, data
rights/computer software strategy, etc.
23
4. Improve Tradecraft in Services
Training:
• ACQ 265 Mission Focused Services 4 day classroom experience
• SAW Service Acquisition Workshop, 4 day acquisition focused workshop
(mandatory > $1B)
• CLC 013 Acquisition of Services On line course 3 hours
• COR 222 Contracting Officers Representative Course 4 day classroom
• CLC 222 COR Course 32 hours
• CLC 106 COR Course 8 hours
• CON 280 is two weeks of Services Contracting
Tools:
• SAM - Service Acquisition Mall
– Online resource for Service Acquisition knowledge and tools.
• ARRT – Automated Requirements Roadmap Tool
– Compose Performance Based requirements
– Generate PWS, QASP, PRS
– Linked to DFARS and PGI 237.102
• Market Research Guide for Services
– Linked to DFARS and PGI 210.70
24
Service Acquisition Mall - SAM
• Integrates Sourcing Process and Learning assets with Product
Service Code Knowledge
– Utilizes same sourcing process contained in SAW and ACQ 265
• Aligns with DPAP Service Portfolios
• http://sam.dau.mil
25
ARRT
Acquisition Requirements Roadmap Tool Suite
A job aid using standard
templates for PWS, QASP
and PRS to help you
organize and write
performance requirements
following the
Requirements Roadmap
process.
http://sam.dau.mil/arrt
DFARS/PGI at 237.102
Builds your documents
• Performance Work Statement (PWS)
• Quality Assurance Surveillance Plan (QASP)
• Performance Requirements Summary (PRS)
• NEW: Evaluation Criteria
• Wizards provide guidance to help build documents
• Proven methodology for building better
requirements.
• Runs on Microsoft Office applications
• Generates Microsoft Word documents for use in your
acquisition
26
PWS
QASP
PRS
New Regulations affecting Service Contracting
• Establish a minimum wage for contractors (FAR
22.12, 15 Dec 14)
– Minimum wage of $10.10 for covered services and
construction contractors, to be adjusted annually by
the DOL
• Notifications Requirements on In-Sourcing Actions
( DFARS 237.102-79, 24 June 14)
– Establish procedures for timely notification of
contractor if we plan to convert (in-source) to
performance by DoD civilian employee
27
5. Improve Professionalism of the Total
Acquisition Workforce
• Established higher standards for key leadership
positions in MDAP and MAIS programs; 18 Nov 13
• Establishing professional Qualification
requirements for all acquisition specialties –
different from Certification (AQWI)
• Increasing recognition of excellence in acquisition
management; and
• Moving the workforce's culture toward a mentality
of getting the best deal rather than simply
spending the budget.
28
6. Contracting in/or in Support of a Contingency
Environment – Influence Change in Region
• Contractor Personnel Performing in support of Operation United Assistance
(Ebola relief) in USARFRICOM , Class Deviation 2015-O0003, 16 Dec 2014
– New clause in contracts, task orders, delivery orders, DFARS 252.225-7985
– Utilize SPOT for all contracts in area that will require contractor personnel to perform
construction, or services, or to deliver supplies in support of OUA
•
Contractor Personnel Performing in Djibouti, Class Deviation 2014-O0005, 13
Jan 2014
– Utilize SPOT for all contracts in area including non-contingency
operations
• Are you doing the appropriate (mandatory) training in your organization to prepare people to
do Contingency Contracting? How many have completed CON234? CON334? As evidenced
above, contingency is unique.
29
7.Proper Use of Interagency Agreements
30
A Violation of the Anti-deficiency Act?
31
FSS/GWAC/MAC
• Reasonable Fees for Assisted Acquisitions, 11 June 14
Policy Ltr
– Know and document the fees when using non-DoD vehicle if the
assisting agencies approach is to use another agencies contract
vehicle
• Priorities, FAR 7.102 and 8.002/4, Effective 30 Jan 14
– No Mandatory Schedules. Consider existing contracts, including interagency and intraagency contracts before awarding new contracts, especially GWAC, FSS, MACs.
• Interagency, DFAR 217.7802 and FAR 17.7, July 2013
– A DoD acquisition official may acquire supplies or services for DoD in excess of the
simplified acquisition threshold through a non-DoD agency only if the head of the nonDoD agency has certified that the non-DoD agency will comply with defense
procurement requirements including DoD financial management regulations, Class
Deviations, and PGI.
32
Business Case for GWACS and MACS
• OFPP memo, dated 29 Sept 11, FAR change on 3 Jan 12: For
acquisitions that enter the solicitation phase after Dec. 31, 2011,
agencies must develop a business case using procedures outlined in
the memorandum to support the establishment or renewal of:
– GWACs
– Multi-Agency Contracts
– Multi-Agency BPAs created in the FSS where another agency is expected
to use the BPA significantly
•
33
Ensure expected return of a new contracting vehicle is worth the cost
of planning, awarding and managing it
Class Deviation 2014-O0011, March 13, 2014
• Class Deviation: Determination of Fair and Reasonable
Prices When Using Federal Supply Schedule Contracts
– Effective immediately
– In lieu of FAR 8.404(d) must use FAR 15.404-1
– GSA determination of fair and reasonable prices does not
relieve the ordering activity contracting officer from
making determination of Fair & Reasonable Price for
individual orders, BPA’s or orders under BPAs.
– Must use proposal analysis techniques at 15.404-1
• Complexity and circumstances of each acquisition should
determine level of analysis required
34
8.System for Award Management System Takes Over
the IAE
• FBO (FedBizOpps) – Posting solicitations over $25,000, allowing commercial business suppliers to
search, monitor and retrieve opportunities in federal government markets.
• WDOL (Wage Determinations On-Line) – Service Contract Act and Davis-Bacon wage
determinations easily accessible by the contracting community.
• CCR (Central Contractor Registration) – Vendors wanting to do business with the government are
required to register in CCR and revalidate annually.
• FedReg (Federal Agency Registration) – Information about federal entities that buy and sell from
other federal entities can be found on this government-only registration system.
• ORCA (Online Representations and Certifications Application) – Allows vendors to enter
Representations and Certifications once for use on all federal contracts.
• PPIRS (Past Performance Information Retrieval System) – The federal acquisition community can
access timely and pertinent contractor past performance information
– FAPIIS (Federal Awardee Performance and Integrity System) – Module on PPIRS that provides data on
potential awardees to support award decisions.
– CPARS (Contractor Performance Assessment Reporting System) –Past performance
input system
35
8.System for Award Management System Takes Over
the IAE
• EPLS (Excluded Parties List System) – Parties excluded from receiving federal contracts
and certain subcontracts. Also identified are individuals excluded from certain types of
federal financial and non-financial assistance, including benefits.
• FPDS-NG (Federal Procurement Data System-Next Generation) – Provides data on all
federal contract actions over the micro-purchase threshold. Standard and custom reports
are easily accessible.
• eSRS (Electronic Subcontracting Reporting System) – Designed for prime contractors to
report accomplishments toward subcontracting goals required by their contract.
• FSRS (FFATA Sub-award Reporting System) – Designed to collect subcontract and subgrant award information in compliance with the Federal Funding Accountability and
Transparency Act (FFATA).
________________ _______________________________
• CFDA (Catalog of Federal Domestic Assistance) – Not an IAE system, but managed by
the Program Management Office that manages IAE Systems and is included in the SAM
project. CFDA is a government-wide compendium of Federal programs, projects, services,
and activities that provide assistance or benefits to the American public.
36
36
What’s the System Landscape Today?
► Federal/IAE systems support the acquisition or award process
The Procurement Process from a Government Agency Perspective
Generate
Requirement
Solicit
Requirement
Review
Offers
Evaluate
Offers/Select
Vendor
Create
Contract
Administer
Contract
Check wage
determinations
Receive bids
Validate entity status
Contract
Close-Out
Report contract
actions
Validate
entity
performance
Post
solicitation
and tech
data
Includes FedReg
Report performance
Includes FedTeDS
Includes CPARS
User action
Entity data
Contract data
37
Includes FSRS
What Are We Doing to Fix It?
DFARS updated May 16, 2013 replacing CCR, ORCA and EPLS with SAM
• Siloed – Separate systems,
each with a separate login
• Redundant – Overlapping
data
• Separate – Various hosting
locations, managed
separately
Includes FedReg
Future
► Login! – Functionality accessible at one
online location to streamline the process
Includes FedReg
► Data Source! – Centralized, normalized
data to eliminate potential for conflicting
values
► Host! – Consolidated hosting to reduce
O&M costs
38
Existing capabilities, streamlined for efficiency.
9. Contractor Business Systems
• Contractor business systems and internal controls are
the first line of defense against waste, fraud, and abuse
• Weak control systems increase the risk of unallowable
and unreasonable costs on Government contracts
• Contractor business systems:
−
−
−
−
−
−
39
Accounting Systems
Estimating Systems
Purchasing Systems
Earned Value Management Systems (EVMS)
Material Management And Accounting Systems (MMAS)
Property Management Systems
Contractor Business Systems
• Feb 24, 2012, DoD Final Rule
• KO’s must include DFARS clause 252.242-7005 in all CAS
covered contracts/TO/DO after August 16,2011 (not small
business)
• Business Systems Clause allows the KO (generally ACOs) to
withhold a percentage of payments when a contractor's business
system contains significant deficiencies
• Payments could be withheld using:
• Interim payments under:
–
–
–
–
40
•
•
Cost reimbursement contracts
Incentive type contracts
Time-and-materials contracts
Labor-hour contracts
Progress payments
Performance-based payments
Contract Business Analysis Repository (CBAR)
• DCMA shares real time business data with government
employees w/a need to know.
• Where do I find CBAR? Under e-tools at the DCMA website
or http://www.dcma.mil/itcso/cbt/CBAR_1_2/index.cfm
• 24/7 data on individual contractors
– Effective 24 June 13, for all negotiated contracts >$25 M, PCO will
share Business Clearance and PNM’s (PGI 215.406-3)
– FPRA/FPRR
– Status of Contractor Business Systems
– Status of compliance with cost accounting standard issues
– General info on the cost & financial condition of the contractor
division and corporate office
41
10. The Small Business Programs
DoD Directive 4205.01, March 10, 2009
• It is DoD policy that a fair proportion of DoD total purchases, contracts,
subcontracts, and other agreements for property and services and for
sales of property, be placed with Small Business Programs:
–
–
–
–
–
–
–
–
–
–
Small Business (SB),
Veteran-Owned Small Business (VOSB),
Service-Disabled Veteran-Owned Small Business (SDVOSB),
Historically Underutilized Business Zone Small Business (HUBZone),
Small Disadvantaged Business (SDB),
Women-Owned Small Business (WOSB),
Historically Black Colleges and Universities and Minority Institutions (HBCU/MI),
DoD Pilot Mentor-Protégé Program,
Indian Incentive Program,
Small Business Innovation Research (SBIR), and Small Business Technology Transfer
(STTR)
and that such small businesses have the maximum practicable opportunity
to participate as subcontractors in DoD contracts, consistent with efficient
contract performance.
42
SET-ASIDE COMPETITIVE
PROGRAM ` ACTIONS >$3000 AND <
SAT
SMALL
BUSINESS
8(A)
Automatically reserved for
set-aside for small
business if two or more
offers anticipated FAR
19.502-2(a)
KO may set-aside prior to a
small business set-aside
COMPETITIVE
ACTIONS >SAT
SOLE SOURCE
May be set-aside if not suitable for other SB
programs, i.e, 8(a), HUBZone, WOSB,
or SDVOSB FAR 19.502-2(b)
No authority
Shall consider set-aside if greater than $6.5M
for manufacturing and greater than $4M for
all other acquisitions – may offer to SBA for
competitive contract
If < $6.5M for manufacturing and $4M
for all other acquisitions – may offer to
SBA for sole source contract. J&A
required if action is > $20M
HUBZONE KO may set-aside prior to a Shall consider set-aside if two or more offers If <$6.5M for Mfg and < $4M for all other
small business set-aside
SDVOSB
anticipated.
If the requirement is currently in the 8(a)
program, must remain in 8(a) program unless
released by SBA
acquisitions, and no reasonable
expectation of more than one HUBZone
offer and award can be made at fair and
reasonable price.
No sole source authority under SAT
KO may set-aside prior to a Shall consider set-aside if two or more offers
small business set-aside
anticipated.
If the requirement is currently in the 8(a)
program, must remain in 8(a) program unless
released by SBA
If <$6M for Mfg and < $3.5M for all other
acquisitions, and no reasonable
expectation of more than one SDVOSB
offer and award can be made at fair and
reasonable price
KO may set-aside prior to a Shall consider set-aside if 2 or more offers
WOSB /
anticipated within the appropriate NAICS.
EDWOSB small business set-aside
43
within the appropriate
NAICS
If the requirement is currently in 8(a)
program, it must remain unless released by
No sole source authority for this
program.
Changes to Small Business
• Rothe Case (FAR 19.11 and 19.12): Deletion of Price Evaluation Adj,
95% progress payment rate, use of evaluation factor for SDB’s,
10/14/14
– Keeps other SDB incentives such as 5% goal and evaluation of prime
contractors subcontracting plan for SDBs.
• Extension of Test Program for Negotiation of Comprehensive SB
Subcontracting Plans to Dec 2017, Deviation 2015-O0006, 12/24/14
• Socio-economic Parity, FAR rule, 3/2/12
– SVOSB, 8(a), WOSB, HUBZone are equal
– If contractor eligibility is protested or appealed, the KO cannot make award
until SBA determination is made (15 days), FAR 07/25/14
• Accelerated Payments to Small Business Primes and
Subcontractors, 08/01/14
• Contract Consolidation, Deviation 10/01/13
44
Small Business and Multiple Award
Contracts (MAC’s)
• FAR 8 and 19
– KO’s can make set-asides against MAC’s
– Set asides can be SB, HUB,WOSB, SDVOSB
– Also applies to Orders and BPA’s
• July 12, 2012 DPAP Policy Letter
“For all prospective new MAC’s w/SB contract holders where order set
asides many be appropriate, commit to using order set asides unless a
determination is made … that there is not a reasonable expectation of
obtaining offers from two or more responsible SB concerns that are
competitive in terms of market prices, quality and delivery”
• Jan 13, FPDS was modified to allow agencies to record the
action of set-aside at the order level
45
Newest Program: Woman Owned Small Business
• Authorizes set-asides for eligible:
– Women-Owned Small Businesses (WOSBs) or
– Economically Disadvantaged Women-Owned Small
Businesses (EDWOSB)
• No sole source authority
• Set-aside for two or more within appropriate
NAICs codes
• KO’s have to check for eligibility at WOSB
Program Repository ,
https://eweb.sba.gov/gls/dsp_login.cfm
46
www.sba.gov/wosb
Small Business: BBP 2.0
• New Small Business Career Field, effective 1 Oct
2014
– 500 personnel in the new career field, 1101’s
– They don’t have to come from contracting
– New certification program and courses begin Oct 16
• Director SB will review all MDAP strategy
documents
• SB will develop annual procurement forecasts
47
11. Commercial Items
• 24 Dec 2014, FAR 13.5, Permanent Authority for use of
the Simplified Acquisition Procedures for Certain
Commercial Items
― Test program for commercial items $150K<X<$6.5M
― Congress made permanent in 2015 NDAA
• 25 June 2013, DFAR 212.301(f), Simplification of
solicitation provisions and contract clauses
– Makes it clear which provisions and clauses apply to
commercial item and which flowdown to commercial
subcontracts.
– 24 Sept 2013 Deviation allows SPS to automatically select the
clauses
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12. Data Vulnerability
• Safeguarding Unclassified Controlled Technical Information,
DFARS 204.73, 18 Nov 2013, PGI 204.73, 16 Dec 2014
–
–
•
Requires the contractor to safeguard DoD unclassified controlled technical information within the
contractor’s unclassified information systems and report the compromise of unclassified controlled
technical information, such as technical data, computer software, and other technical information
Procedures for requiring activity and contracting officer when a solicitation is expected to result in a contract
with CTI.
Requirements Relating to Supply Chain Risk, DFARS 230.7306, 18
Nov 2013 (Interim Rule)
–
Provision and clause for inclusion in all solicitations and contracts, including contracts for commercial items
or COTS items involving the development or delivery of any information technology, but only applies to
National Security Systems
• Basic Safeguarding of Contractor Information Systems (Proposed
FAR Case 2011-020)
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–
Will add subpart at 4.17, Basic Safeguarding of Contractor Information Systems
–
Contractor must protect Federal Gov’t information transiting through the contractors information systems
and report information breaches to the Gov’t. Gov’t will have access to computers to analyze breach.
BRAIN HURT?
• Some help keeping up or looking up information
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Acquisition Central
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Federal Contracts Report
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Defense Acquisition Portal
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National Contract Management Association
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Where In Federal Contracting
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http://www.wifcon.com/