what’s hot in acquisition

What’s Hot in Acquisition

Jack Kelly, Office of Management & BudgetKaren Pica, Office of Management & BudgetDianne Rose, Social Security Administration

Linda Ott, Federal Acquisition Institute

June 2009 2

Hot Topics

• Recovery Act• Improving Transparency • Presidential focus on Contracting • Enhancing Competition and Small Business Contracting• Enhancing Strategic Consideration of Contract Type• Managing the Multi-Sector Workforce • Contractor Integrity• Meeting Cost, Schedule, and Performance Goals• Strengthening the Acquisition Workforce

June 2009 3

Recovery Act• American Reinvestment & Recovery Act• Success requires sustained focus by managers throughout the

Federal government, particularly in planning, awarding, managing, and overseeing contracts…

• Each agency has a Senior Accountable Official for Recovery• Guidance issued Feb 18, April 3 (www.recovery.gov) • Special requirements for Recovery Act contracts

– Information about contracts not fixed-price and competitively awarded must be posted on a special section of Recovery.gov

– Summary of all contracts, orders, and mods over $500K must be posted on Recovery.gov

– Continued support of small businesses– Unprecedented Transparency and Accountability

June 2009 4

Improving Transparency

We cannot overstate the importance of this effort. We are asking the American people to trust their government with

an unprecedented level of funding to address the economic emergency. In return, we must prove to them

that their dollars are being invested in initiatives and strategies that make a difference in their communities and across the country. Following through on our commitments

for accountability and openness will create a foundation upon which we can build as we continue to tackle the

economic crisis and the many other challenges facing our nation."

White House Chief of Staff and OMB Memorandum to Heads of Departments and Agencies, February 9, 2009

June 2009 5

Focus on Contracting

• Executive Orders Affecting Procurement • March 4, 2009 Presidential Memorandum

on Government Contracting• Signed within first 60 days in office,

stresses importance of contracting to government

June 2009 6

Executive Orders

• EO 13494 Economy in Government Contracting

• EO 13495 Nondisplacement of Qualified Workers Under Service Contracts

• EO 13496 Notification of Employee Rights Under Federal Labor Laws

• EO 13502 Use of Project Labor Agreements for Federal Construction Projects

June 2009 7

Presidential Memorandum

• March 4, 2009 Presidential Memorandum on Government Contracting

• OMB to issue guidance by July 1 and Sept 30 on – Contract review and monitoring– Competition– Strategic consideration of contract type– Acquisition workforce– Management of multi-sector workforce

June 2009 8

Competition• By October 2009, the FAR will be amended to strengthen the use

of competition for task and delivery orders.

• The FAR will also be amended to limit the length of contracts that have been awarded noncompetitively due to urgency to one year.

• OFPP steps to maximize the meaningful use of competition and increase transparency:

– OFPP asked agencies to reinvigorate the role of their competition advocates.

– Establish the CAOC Competition Working Group to analyze trends in competition data in order to better evaluate achievements and suitability of individual agency competition goals.

– Revisions in FPDS to clarify reporting on competition information.

June 2009 9

Small Business• PARITY• Government Accountability Office (GAO) – Parity Among Small Business

Programs:– International Program Group, Inc., found that an agency must consider

HUBZones before considering small business set-asides for SDVOSBs.– Mission Critical Solutions, found that an agency must consider HUBZones before

considering small business set-asides for the 8(a) business development program. Also, If a contractor is in the 8(a) program and a follow-on contract can be set aside for HUBZone, the Agency must remove the Acquisition from the 8(a) program.

• Set-Asides Apply to Task/Deliver Orders under MACs:– Delex Systems, calls for agencies to apply small business set-aside

requirements to orders under multiple award contracts, contrary to guidance in the Federal Acquisition Regulation that applies such requirements to contract awards, but not to individual orders issued under the contracts.

• October 1, 2008, SBA issued a final rule establishing the Women Owned Small Business Set-Aside program. This program has not been implemented in the FAR due to controversy over the requirements.

June 2009 10

Contract Type

• Guidance to address minimizing risk and maximizing value of government contracts in consideration of selecting contract type to meet agency needs

• Annual report to Congress by March 1 each year on cost-reimbursement contracting

June 2009 11

Multi-Sector Workforce

• Guidance required on in/out sourcing within a policy framework

• Guidance and report due on inventory of federal and contracted functions

• Report to Congress on contractor inventory pilot

June 2009 12

Contractor Integrity

• Federal Acquisition Regulation (FAR) amended to require contractors disclose fraudulent behavior to agency Inspectors General.

• By the end of the summer of 2009, the FAR must be further amended to address personal conflicts of interest on activities that are closely associated with inherently governmental activities

• By October 2009, must establish an expansive database to be used in evaluating the integrity of potential government contractors and grantees.

• DOJ Procurement Fraud Task Force: http://www.usdoj.gov/criminal/npftf

June 2009 13

Meeting Cost, Schedule Performance Goals

• GAOs annual high-risk series released Jan 2009

• Increased attention on mitigating cost overruns, schedule delays, performance shortfalls

• OMB partnering with agencies on implementing plans to mitigate high risk

• A-123 agency assessments due in 2009

June 2009 14

Key Acquisition Data Points

• Between FY 2000-2008, acquisition spending increased from approximately $200 billion to $535 billion.

• In FY2007, represented 41% of the government’s discretionary spending. – More dollars are obligated under fixed-price contracts (60%)

than cost-type contracts (40%).– The level of competition has remained relatively constant.

Between FY 2000-FY 2007, the percentage of dollars competed of those available is approximately 64.

– Prime contract dollars awarded to small businesses have increased. In FY 1998, $45.5 billion or 23% of eligible acquisition dollars were awarded to small businesses. In FY 07, $83.3 billion or 22% of eligible acquisition dollars were awarded to small businesses.

June 2009 15

Products vs ServicesTypes of Acquisitions: Products vs. Services 2007

$271, 59%

$192, 41%

Services in Billions (incl. R&D)

Products in Billions

June 2009 16

Acquisition Workforce

Retain skilled professionals

Attract new professionals

Career development

Share knowledge

Recognize and reward excellence

This is YOU and Thank You!

June 2009 17

Acquisition WorkforceDevelopment Strategic Plan

• NDAA09 SEC869– Congress mandated the establishment of a

comprehensive strategic plan for acquisition workforce development in civilian agencies

– Must include methods for determining the appropriate size of the workforce

– Must identify sustainable funding models to support the hiring, retention and training of the workforce

June 2009 18

OFPPPoints of Contact

• Laura Auletta lauletta@omb.eop.gov– Competition – Environmental Contracting – Supply Chain Security

• Juliana Basile jbasile@omb.eop.gov– Integrated Acquisition Environment Program Mgr – Acquisition Data Mgr – Transparency Technology Team Mgr for OMB

• Jack Kelly jkelly@omb.eop.gov – Federal Procurement Data System – Strategic Sourcing – Aircraft Management

• Karen Pica kpica@omb.eop.gov – Acquisition Workforce Management – Section 508 program

• Curtina Smith csmith@omb.eop.gov– Internal Controls and Implementation (A-123) – High-risk Contracting Oversight – Interagency Contracting

• Susan Truslow struslow@omb.eop.gov– Incentive Contracting – Small Business– Emergency Acquisition Policies – Purchase Cards

• James Wade jwade@omb.eop.gov– Program/Project Management

• Julia Wise jwise@omb.eop.gov– Acquisition Regulations Mgr – International Contracting – Chief Acq Officers Executive Secretariat – Performance-based Acquisition – Past Performance Policy

• Raymond Wong rwong@omb.eop.gov– Cost Accounting Standards Board – Tax Issues – Cost-type Contracting