Emerging Trends in Procurement and
What’s New in NCMA
Neal J. Couture, CPCM
Executive Director
National Contract Management Association
The Acquisition Workforce Has Changed
• Years of downsizing (1990’s)
• Human capital strategies have not kept up with
evolving demand
• Different set of expectations, e.g. business
advisor
• Evolving gap in replacing the retiring
professionals
• Inadequate investment in training
The Nature of What We Buy Has Changed
• Offloading simple transactions
• Larger, more encompassing services
• Complex IT, communications, and weapons
systems
• Accelerated fielding to serve the war fighter
• Emphasis on logistical support
AALPS
ACTF
ADLER
AVCATT
ACS
AFATDS
APKWS
A2C2S
ATACMS
BSM
ADOCS
APACHE
AMDWS
ASAS
BCS3
BSTF
AWACS
LOGISTICS
AIR DEFENSE
AAFARS
AMPS/JMPS
CAMEL
C2
TRAINING
CHIMS
DCGS-A
BATES
C-5
BFT
Blackhawk
Future Combat
System (FCS)
C-17
C-130
CBS
CBRNRS
C2PC
F/A- 22
FIOP
GIG
FMTV
CHINOOK
DMS-A
IBS
ACTF MANEUVERMOB/SUR
FIREFINDER
NETWORK
SOLDIER
MGV AALPS
ATACMS
(Q36)
ADOCS
IEWTPT
Logistics
ADSI
AVCATT
DTSS
HSTAMIDS
APACHE
ACSWMEADS
C2
STEPS
LFC2IS
BVTC
AAFARS
CED C-5
ADSSI CBS LLDR APKWS
Engineer
CLOE
MAGIS
MOUT-OIS
MK
VII
SLAMRAMM
FAAD-C31
CAMEL
FCS–Non
FCS CID
AMPS/JMPS
C-17
IEWTPT
FRS
Vehicle
DCTS
AFATDS
JCM
RADIAC
SET
MCTIS
HTI-FLIR
SHORAD
FMTVC-130
GPS
SECOMPI
Sentinel
Soldier to FCS CID
AMDWS
LIGHTWEIGHT120MM
FBCB2
JTRS1
HEMTT
JLENS XXI
MILES
HEMTT
Soldier
to Soldier CID
MANEUVER
cannon (Pending)
MOUT-OIS
A2C2S SOLDIER-CATT
JTRS5
HMMWV
PEGASYS
LLAPI
LOGISTICS
MFCS
FIREFINDER (Q37)
TACSIM
JWARN
ASAS
HMMWV
M1114
HMMWV
M1114
MK-44SE-CORE
LAND
MOB/SURV
BSTFWARRIOR
LFED
LETHALITY SOLDIER
GBS
BCS3 WARSIM
PROPHET
SYSTEM
HIPPO
MC4
CLOEMUNITION
ACSW AIRBURST
BSM
HMMWV
INTEL
JCAD
BFT
NCES
LHS FUEL FARM
ACSW KE MUNITION
JSLSCAD
PLS
BLACKHAWK
ACS
PKI
GCSS-A
LWP
C2PC
ACSW TRAINING MUNITION
JBPDS
MSD
STEPS
CBRNRSHIPPO
CKEM
JTAGS
MAINTENANCE
TRUCK/FRSTELEPORTS
JBSDS
DMS-A
Command
and
Control
Electronic Time Fuse
CHINOOK
UAVPLST
CL IVTES
GCCS-A
DTSS
WIN-T
EXCALIBUR
ASTAMIDS / EO/IR
Engineer
vehicle
FIOP
TEP UAV-CL IV-b
FAAD-C3 MACSFIRE SUPPORT
GMLRS
Tactical SIGINT PAYLOAD
HMEE
FIRE
SUPPORT
TC-AIMS
II
MOFA
UAV
–SAR/GMTI
GIG
FBCB2
LHS
FUEL
FARM
MILES XXI
INTEL
HIMARS
ADLER
NON-LETHAL
155mm
REBS
GCCS-A
FIRE
SUPPORT
LFC2IS
UGV
BATES
PGMM
FIREFINDER-Q37
MTS
AWACS TRAINING
ARV(L)
MONGOOSE
INTEL
HMEE
Training Unique Ammo
FIREFINDER
(Q36)
IDM
ATIA
SIMACET
F/A-22
Land Warrior
JAVELIN
GMLRS
IBS
MK-44
AMMO
30
mm
AIRBURST
CCTT
IMS
MULE DCGS-A
IMETS NFCS
TBMCS
HIMARS
MK-44 AMMO
30 mm KE
CTIA
NFCS
GSTAMIDS
NLOS-LS
MAGIS
IDM
JCM
JC2
CHIMS
MK-44
AMMO
40
mm
AIRBURST
TSV
DLS
PROFILER
TCO
MCTIS
MK-44 AMMO 40 mm KE
TAIS
OneSAF
TELEPORTS
MTS
IMETS
MRM/ERM PHOENIX
JC2
OneTESS PAFCS
NGATS
MLRS
NGATS
LWP
JLENS
MCS
JTAGS
PATRIOT
Internal
PKI
TC-AIMS II
TEP
PLST
SentinelMIP
LLAPI
Interfaces
PEGASYS
Soldier System
MCS
TES
SLAMRAMM
UAV-CL IV -b TAIS
SHORAD
Profiler
REBS
PLS
PAFCS
PHOENIX
Mongoose
MSD
MLRS
MIP
MEADS
SOLDIER-CATT
WARSIM
TSV
TBMCS
TCO
TACSIM
SECOMPI
SE-CORE
SIMACET
ExternalSystems
and Interfaces
The Working Conditions Have Changed
• Compelling urgency – everything is accelerated in
fight against terrorism
• Doing business in the battle space
• Deployment of personnel leaves home force
shorthanded
• Unprecedented level of support needed for
hurricane Katrina response
• Constant threat of oversight and secondguessing decisions
• High media attention
The Acquisition Rules Have Changed
• Years of acquisition reform (1990’s)
• Commercial items and complex services
• Larger task orders with less transparency
• Organization conflicts of interests
• Interagency contracting
• More outsourcing (competitive sourcing)
• Expanded socio-economic programs
• Buy American
The Supply Base Has Changed
• Industrial base consolidation
• Partnerships and teaming
• Global competition has increased
• Strategic sourcing
• More eBusiness
• More competition at 2nd and 3rd tier
• Increased OCI challenges
This All Adds Up To Risk!
• There is more work, it is more complex, and it
must be acquired faster than ever
• Workforce downsizing, expert class retiring, while
expectations and oversight increases
• Rules are more flexible, actions are less
transparent
1. The Federal acquisition workforce
remains a major challenge.
• Shortage of skilled labor is not unique to our profession,
industries or employers.
• Cannot replace ‘brain drain’ fast enough.
• Workload will remain.
• Training funds get cut routinely.
• Alternative workforce solutions required.
– Eliminate barriers to hiring external candidates.
– Eliminate barriers to re-hiring annuitants.
– Increase use of alternative work arrangements and compensation
plans.
– Increased telework.
2. The political pressures on the Federal
procurement system will increase short
term.
• Mission will not be reduced soon.
– Replacing war equipment and materials.
– Aging systems (refueling tankers, etc.)
– Insatiable appetite for improved warfighting technologies.
• Dozens of contracting oversight bills in committees.
• Increased attention on blended or multi-sector workforce.
• Attention on GSA Administrator, SBA effectiveness, NASA
IG, DHS acquisition organization and DoD systems
acquisitions.
3. Financial pressures will force
discretionary budget reductions beginning
in next five years.
• The Fiscal Wake-Up Tour being conducted by the
Comptroller General.
• We spend less of our budget on defense in 2006 than in
1986 or 1966.
• Discretionary spending is down from 67% in 1966 to 38%
in 2006.
• Budget deficits of $928 billion in last two years.
• Rising entitlement (health care) costs is the main cause.
“Saving Our Future Requires Tough Choices Today”
GAO-07-739CG April 4, 2007
4. Regulatory changes likely:
•
•
•
•
•
•
•
Reduce number of contracts awarded non-competitively.
Eliminate practice of Lead Systems Integrator (LSI).
Increase use of fixed-price contracts.
Increase small business contracting goals.
Restrictions on contracting with entities in tax default.
Guidance on use of award fees.
Emphasis on using hybrid contracts containing multiple
incentive types.
• Restrictions on outsourcing, new requirements to insource.
S.680 Accountability in Contracting Act
on Task Order Contracts
• require task or delivery order contract awards that are anticipated to
exceed the simplified acquisition threshold to be made on a competitive
basis providing notice to all contractors offering goods or services under
a multiple award contract, with specified exceptions;
• notice requirements on sole source orders in excess of such threshold
that are placed against multiple award contracts or blanket purchase
agreements;
• require a statement of work for a task and delivery order valued over $5
million to specify the basis for selection;
• require agencies to provide offerors not selected for such an order a
post-award debriefing;
• authorize protests of such orders valued over $5 million;
• include as a condition for use of noncompetitive contract procedures the
public disclosure of justification and approval documents; and
• limit the length of specified noncompetitive contracts for property or
services available from only one source.
S.680 Accountability in Contracting Act
other issues
• a requirement for each agency to develop a plan for
minimizing the use of cost-reimbursement contracts
• the issuance of guidance on the use of tiered evaluations
of offers for contracts and for task or delivery orders under
contracts.
• the debarment of contractors that are serious threats to
national security.
• limitations on the use of subcontractors or tiers of
subcontractor.
• Workforce provisions include new SES position at OFPP for
workforce, industry exchange, fellowships, interns, training
programs.
Strategic Initiative
Increase Professional Advocacy
• Monitor, analyze, communicate and train on domestic
and international developments that may have an
impact on the practice of contract management or the
people and organizations that practice contract
management.
– Pending and adopted legislation and regulation.
– Workforce developments
– Other conditions affecting the profession
• Publish white papers that explain, describe and clarify
issues of importance.
• Provide information to key stakeholders to improve
understanding of public procurement.
• Develop a public relations communications strategy.
Strategic Initiative
Create the Next Generation of
Contract Management Professionals
• Recruit students members.
– More than 500 undergraduate student members.
• Charter student chapters.
– Cal Poly Pomona, Bowie State, and Christopher Newport
• Standard CM Curriculum
• MacFarlan research program – papers due 12/31/07!
• Contract Management Leadership Development Program
(CMLDP)
– First class of 34 students graduated in April 2007
– Second class of 24 students started June 2007.
Upcoming Publications
Product
Date
Journal of Contract Management.
September 2007
The Resource Guide 2008
November 2007
The 2007 Salary Survey.
February 2008
Upcoming Education Programs
NES Seminars
Solicitations, Bids, Proposals and Source Selection
September 2007
New Far 45 Government Property Rules
January 2008
Earned Value Management
April 2008
Contract Costs and Pricing
September 2008
Audio-seminars
FAR Overview (Parts 5, 6, 7, and 8)
September 13
Contract Administration Basics (Performance Monitoring)
September 27
Contract Law Basics (Ethics and Compliance)
October 4
Pricing Basics (Price Analysis)
October 18
GSA Multiple Award Schedule (MAS) Contracts
October 23
Upcoming Conferences
Event
Date
Government Contract Management Conference in
Bethesda, MD
November 8-9, 2007
Mid-Year Leadership Conferences in Las Vegas,
Orlando, and San Antonio.
January-February
2008
World Congress 2008 in Cincinnati, OH.
April 13-16, 2008
Leadership Summit 2008 in San Diego, CA
June 2008
Aerospace and Defense Contract Management
Conference in Garden Grove, CA.
July 2008
The Value of NCMA Certification
• Results of NCMA’s 2005 Salary Survey (over 2,200
respondents)
– $75,000 average salary with no certification
– $85,000 average salary with CFCM
– $100,000 average salary with CPCM
– $77,600 BS/BA degree and no certification
– $85,500 BS/BA degree and CFCM
– $95,800 BS/BA degree and CPCM
– $92,700 MA/MS/MBA degree and no certification
– $108,000 MA/MS/MBA degree and CPCM
Communities of Practice
New
Program!
• More ways to connect to the information, people,
and tools that you need.
• Launch March 2008:
– GSA Schedule Contracting
– Small Business Contracting
– Performance Based Acquisition
• Online features: e-courses, discussion forums,
listservs, blogs, expert networks, e-newsletters,
website, research archives
• Meetings at World Congress, new educational
conferences, quarterly magazines
What you can do.
• Lead by your actions.
• Be a “chief courage officer”
• Stay informed on the issues.
• Have opinions, and engage in the discussion.
• Participate in continuous learning.
• Demonstrate your competency by getting
certified.
• Resist cynicism and skepticism.
• Participate in your NCMA chapter.
Engage in your profession!
NCMA
21740 Beaumeade Circle, Suite 125
Ashburn, VA 20147
Neal J. Couture, CPCM
Executive Director
couture@ncmahq.org
1-800-344-8096 x423
571-382-1123
703-448-0939 (fax)
www.ncmahq.org