2014 fall training conference

2014 Fall Training Conference

35 Years of Commonsense in Government Procurement:

Looking Back and Moving Forward

Thank You to our Title Sponsor!

Thank You to our Silver Sponsor!

Thank You to our Event Sponsors!

Thank You to our Keystone Members!

Thank You to our Strategic Partners!

Keynote Address

The Honorable Thomas Davis

Director, Government Relations, Deloitte

State of Play: 2014 Election Analysis

Tom Davis

Copyright © 2014 Deloitte Development LLC. All rights reserved. 11

2014 Election Landscape and Takeaways

• Second midterm elections are historically bad for the President’s party –

2014 was consistent with that trend

• Voting alignments are racial, ethnic and cultural

• Parliamentary voting patterns prevail; ticket splitting now the exception

‒ 94% of House Republicans are from pro-Romney Districts

‒ 96% of House Democrats are from pro-Obama Districts

• Republicans control both chambers for first time since 2006

• Largest Republican House majority since winning 270 seats in 1928

• Republicans must now prove they can govern to position for 2016


Senate Playing Field Favored GOP in 2014

• 21 Democrats were up and only 14 GOP

• 7 Democrat seats were in states Romney won, in fact 6 (AK, AR, LA, MT,

SD, WV) of the seats Obama received 42% or less

• 6 other Democrat seats were in swing states

• Only 1 GOP seat was in an Obama state, Maine – Sen. Collins won 2012

election with 61% and 68% yesterday

• Every other GOP Senate seat was in a state where Obama received less

than 45%


2014 U.S. Senate Race Results

Senate Race Summary: Democratic Republican

Seats Held Pre-Election 53 + 2 45

Seats Up for Election in 2014 21 15

Runoff or Too

Close to Call

Seats Confirmed on 5-Nov 43+2 52 3*

*Runoff or Too Close to call

- Alaska (too close to call)

- Virginia (too close to call)

- Louisiana (runoff on December 6)


2014 Senate Races by 2012 Presidential Result

Obama + 15 or

Greater Obama +5 to +14.9

Obama +4.9 to

Romney +4.9 Romney +5 to +14.9

Romney +15 or

Greater

DEMOCRATS (21)

Coons (DE) +19

Schatz (HI) +43

Durbin (IL) +17

Markey (MA) +23

Reed (RI) +27

Booker (NJ) +17

M. Udall (CO) +5

Harkin* (IA) +6

Levin* (MI) +10

Franken (MN) +8

Shaheen (NH) +6

T. Udall (NM) +10

Merkley (OR) +12

Hagan (NC) R+2

Warner (VA) D+4

Begich (AK) +14

Walsh* (MT) +14

Pryor (AR) +24

Landrieu (LA) +17

Johnson* (SD) +18

Rockefeller* (WV) +27

REPUBLICANS (15)

Collins (ME) +15

Chambliss* (GA) +8

Cochran (MS) +12

Graham (SC) +10

Scott (SC) +10

Sessions (AL) +22

Risch (ID) +32

Roberts (KS) +22

McConnell (KY) +23

Johanns* (NE) +22

Coburn (OK) +34

Inhofe (OK) +34

Alexander (TN) +20

Cornyn (TX) +16

Enzi (WY) +41

Senators running in 2014 by 2012 presidential performance (Obama vs. Romney)

* Senate seat is open

Source: The Cook Political Report


2014 U.S. House of Representatives Race Results

House Race Summary: Democratic Republican

Seats Held Pre-Election 201 234


Runoff or Too

Close to Call

Seats Confirmed on 5-Nov 176 243 16


2014 Governors Race Results

Gubernatorial Race Summary: Democratic Republican

Seats Held Pre-Election 21 29


Runoff or Too

Close to Call

Seats Confirmed on 5-Nov 16 31 3*

*Too Close to call

- Alaska

- Connecticut

- Vermont


New Senate Breakdown by Presidential Voting

32 D

4 R

3 D

3 R

2 D

2 R

2 D

2 R

6 D

8 R

2 D

8 R

1D

25 R


Arkansas

Senate – Cotton (R) 57% - Pryor (D) 40%


Georgia

Senate – Perdue (R) 53% - Nunn (D) 45%


Illinois

Governor – Rauner (R) 51% - Quinn (D) 46%


Iowa

Senate – Ernst (R) 52% - Braley (D) 44%


North Carolina

Senate – Tillis (R) 49% - Hagan 47%


Virginia

Senate – Warner (D) 49.2 % - Gillespie (R) 48.4%


Polarization

1. Redistricting

• Residential Sorting

• Voting Rights Act

• Gerrymandering

2. Media Business Models

• Cable News

• Talk Radio

• Internet

3. Money in Politics

• McCain – Feingold

• Citizens United

The Ideological sorting of the parties


The Incredible Shrinking Middle

Most Liberal

GOP

Most Conservative

Democrat

More

Liberal

More

Conservative

“Moderates”

Based on legislative voting records and analysis by National Journal


U.S. House of Representatives

Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

344 79%

1982



Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

1994

252 58%



Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

2002

137 31%



Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

2014

0


U.S. Senate

Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

1982

58


U.S. Senate

Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

1994

34


U.S. Senate

Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

2002

7


U.S. Senate

Most Lib

GOP

Most Cons

DEM

More

Liberal

More

Conservative

2014

0


(96%)

2014 House races by 2012 presidential performance (Obama vs. Romney)

(93%)

Long-Run Effects of Redistricting Means

House is Fairly Inelastic in 2014

Source: The Cook Political Report.

2014 House Elections


Note: “Swing” districts are defined as having an average presidential vote margin over the last two elections within five points of the national average

123

139

149 148 147 150 150

146

159 164

134

111 108 108

103 103 99

90

148

162

175 179 180 182 182

190 186

80

100

120

140

160

180

200

1998 2000 2002 2004 2006 2008 2010 2012 2014

Democratic (D+5 or Greater) Swing (D+5 to R+5) Republican (R+5 or Greater)

Source: Cook Political Report.

The House’s Incredible Shrinking Swing Seat

Number of House seats by Partisan Voting Index of district

2014 House Elections


2014 Ballot Initiatives

• Minimum Wage – Raised in AK, AR, IL, NE & SD

• Marijuana – Legalization passed in AK, DC & OR

• Taxes – Restrictions on raising income taxes passed in GA & TN


The Republican-controlled Congress has a number of key

items to address post-election and in the first half of 2015

Source: National Journal Research 2014

Lame Duck January February March April May June

Tax Extenders:

Congress will likely

renew tax

extenders before

they expire

Terrorism Risk

Insurance Act:

A long-term

compromise bill is

possible, but a

short term

extension could

push the issue into

next year

Foreign Policy:

Congress will likely

renew the Syrian

arming/training

resolution; action

on Ukraine is also

possible

Appropriations:

An omnibus is

possible, but a

short-term CR is

more likely

Debt Ceiling: Watch

for confrontation

over spending

levels and issues

Republicans could

attach to a debt

ceiling deal

Doc Fix: Expect

another short-term

fix or a long-term

plan paid for

primarily through

deficit reduction by

the current fix’s

expiration date in

April

Highway Trust Fund:

Republicans will

likely change

spending levels and

attempt to eliminate

the gas tax in a

Highway Trust Fund

renewal

Export-Import Bank:

Republicans are split

on whether the bank

should expire; it may

or may not be

reauthorized

114th Congress – Timing Uncertain

• Immigration: Certain policies could pass with Democratic support, but comprehensive reform is unlikely

• Fossil Fuel: GOP likely to push to approve Keystone XL legislatively and to reduce regulation on energy exploration

• Online Sales Tax: Not a high priority but lobbying efforts from states and small businesses may push GOP to allow for an online sales tax

• Affordable Care Act: A deal on repealing the medical device tax is likely to pass; regulatory changes to coverage requirements are possible

• Terrorism Risk Insurance Act: If the lame duck results in a short-term extension, expect a compromise closer to House GOP priorities

• EPA Regulations: GOP may try repealing EPA regulations on carbon emissions through a budget/debt ceiling vote

• Foreign Policy: Congress may make Syrian reauthorization contingent on a new AUMF; Republicans may push more confrontation with Iran

• International Trade: A Republican Senate would likely grant Obama Trade Promotion Authority to sign the TPP and TIPP trade agreements

• Appropriations: A regular-order budget is possible, but another CR is a strong possibility; some GOP members have hinted at reconciliation

• FCC/Net Neutrality: Republicans may restrict the FCC’s authority or withhold its funding if it implements more expansive regulations

• Tax Reform: Movement on comprehensive tax reform remains unlikely in a Republican Congress

DoD Better Buying

Shay Assad

Director of Defense Pricing, Department of

Defense

Cybersecurity – A Game Changer

• Moderator: Emile Monette, GSA Office of Mission

Assurance

• Brad Medairy, Senior Vice President, Booz Allen

Hamilton

• Elizabeth Ferrell, Partner, McKenna Long & Aldridge

• Jon Boyens, Senior Advisor for Information Security,

NIST

Acquisition Forum

• Moderator: Steve Schooner, Nash and Cibinic Professor and Co-Director of the Government Procurement Law Program, The George Washington University

• Matthew Blum, Associate Administrator, Office of Federal Procurement Policy

• Jeffrey Koses, Senior Procurement Executive, General Services Administration

• Mike Pullen, Director Business Development, Strategic Operations, CGI Federal

Performance Metrics

Clear & Concise Policy

Engaged Workforce

Innovative Acquisition

Satisfied Customers

CPG: 2015 Acquisition Forum GSA Senior Procurement Executive Jeff Koses

Innovative, Streamlined and Cost Effective Acquisition

Enable Smart & Effective Buying – GSA-wide

Effective Acquisition Policy

FY14 Results: • Utilized evidence-based and data driven approach to updating to policy.

• Completed small business policy update and provided workforce training.

• Examined role of transaction data in yielding savings and reducing burden.

FY15 Initiatives • Develop policy agenda that addresses outdated policy and identifies mis-

incentives that lead to contract duplication. • Lead an active dialogue about transactional data and burden reduction • Address incremental funding for fixed price contracts. • Advance policy needs of the multiple award schedules:

• Formalize over 35 provisions and clauses to allow public comment • Address DOD deviation on schedule ordering procedures • Address ODCs.

Enable Smart & Effective Buying – Government-wide

Lead the CAAC to a new level of innovation and partnership

FY14 Results • Advanced the Presidential Management Agenda.

• SPE and Civilian Agency Acquisition Council (CAAC) visited major civilian agencies.

• Initiated assessment of rebuild for Acquisition.gov.

FY15 Initiatives • Fully engage the Civilian Agency Acquisition Council to better leverage best

practices and increase information sharing governmentwide.

• Advance rulemakings related to Executive Orders and OMB priorities.

• Initiate rebuild of Acquisition.gov.

• Stop publishing loose leaf edition of FAR.

Develop Healthy & Productive Industry Relationships

FY14 Results • Named GSA’s Industry Ombudsman.

• Drafted GSA Industry/Communications Plan.

• SPE addressed role of industry communications across regions.

FY15 Initiatives

• Facilitate a dialogue between industry and the acquisition workforce through a

comprehensive Procurement Ombudsman Program.

• Implement Industry Communications Plan that outlines strategies for frequent

and effective engagement with industry and stakeholders.

• Develop toolkit for GSA’s acquisition workforce with focus on how to better

engage both industry and customers.

Frequent and Effective Engagement

Acquisition Forum

• Moderator: Steve Schooner, Nash and Cibinic Professor and Co-Director of the Government Procurement Law Program, The George Washington University

• Matthew Blum, Associate Administrator, Office of Federal Procurement Policy

• Jeffrey Koses, Senior Procurement Executive, General Services Administration

• Mike Pullen, Director Business Development, Strategic Operations, CGI Federal

Lunch Speaker

Alan Estevez

Principal Deputy Under Secretary of Defense

for Acquisition, Technology & Logistics, DoD

Myth-busters Breakout Sessions #1 2:00pm-3:00pm

• Electronic Platforms and Social Media – Rayburn

• GSA, Federal Acquisition Service, General Supplies and Services (GSS) Business Line Update – Justice

• Customer Users of Government-wide Acquisition Vehicles – Dirksen

• OASIS and Beyond – Changes in the Acquisition of Professional Services – Longworth

Myth-busters Breakout Sessions #2 3:15pm-4:15pm

• DoD Acquisition Update

– Rayburn

• Update on Government-wide IT Acquisitions

– Justice

• Strategic Sourcing – What’s Ahead

– Dirksen

• See 2015-2016 through a Commercial Lens

– Longworth