Jan 2015

1

When Did We Start to Write the Rulesfor 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

0

10

20

30

40

50

60

70

80

90

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 Amendments+ 1 Technical Amendment+ 4 Revisions+ 1 Addendum [20 pages]+ 1 Thresholds Matrix [34 pages]+ 10 Corrections

• 178 Defense FAR Supplement Publication Notices1 issued since January 2008 [Through DPN 20141219]

• 45 Open FAR Cases• 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

[1 Previously Designated Defense FAR Supplement Change Notices]

Sources of FAR Changes

Legislation

IG & GAO Recommendations

Court Decisions

OFPP Policy Letters

Executive Orders

Agency Recommendations

Individual Recommendations

Industry Recommendations

Policy Changes

FARDFARS

PGI

FARDFARS

PGI

6

Other Sources of Changes…Improvements to the Process Such as BBP

BBP Guidance Roadmap BBP 2.0 Focus Areas BBP 3.0 Focus Areas

Target Affordability and Control Cost Growth

Achieve Affordable Programs Achieve Affordable Programs

Control Costs Throughout the Product Lifecycle

Achieve Dominant Capabilities While Controlling Lifecycle Costs

Incentivize Productivity & Innovation in Industry

Incentivize Productivity and Innovation in Industry and Government

Incentivize Productivity in Industry and Government

Incentivize Innovation 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

Defense Procurement & Acquisition Policy (DPAP) http://www.acq.osd.mil/dpap/

• Mr. Shay Assad assumed the role of Director of Defense Pricing in June 2011.

DefenseAcquisitionRegulations

System(DARS)

Ms. Linda Neilson

DefenseAcquisitionRegulations

System(DARS)

Ms. Linda Neilson

AcquisitionPolicy(AP)

Mr. SkipHawthorne

AcquisitionPolicy(AP)

Mr. SkipHawthorne

ContractPolicy/

InternationalContracting

(CPIC)Mr. John Tenaglia

ContractPolicy/

InternationalContracting

(CPIC)Mr. John Tenaglia

DirectorMr. Richard Ginman

DirectorMr. Richard Ginman

OperationsMr. Robert Jarrett

OperationsMr. Robert Jarrett

Program Acquisition

Ms. Jill Stiglich

Program Acquisition

Ms. Jill Stiglich

ProgramDevelopment

& Implementation(PDI)

Ms. LeAnthaSumpter

ProgramDevelopment

& Implementation(PDI)

Ms. LeAnthaSumpter

Strategic PlanningMs. Mary Thomas

Strategic PlanningMs. Mary Thomas

Contingency Contracting

(CC)RDML Althea

Coetzee

Contingency Contracting

(CC)RDML Althea

Coetzee

Services Acquisition

(SA)Strategic

Sourcing (SS)Mr. Kenneth

Brennan

Services Acquisition

(SA)Strategic

Sourcing (SS)Mr. Kenneth

Brennan

8

DPAP Hot Topics and BBP

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 Environment7. Proper Use of Interagency Agreements8. System for Award Management (SAM)9. Contractor Business Systems including CBAR 10. Small Business 11. Commercial Items12. Data Vulnerability9

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 TMRR EMD Production O&S

Affordability is Prime Should Cost is Prime

PM AoA

Look for opportunities to inject competition and ways to maintain competition throughout the lifecycleReconstruct 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 DisciplineMeeting Discipline

CON FAR Should Cost - NegotiationsCDRL Reduction - is every deliverable necessary? Who uses each one?

ID opportunities to breakout separate small business or GFE items/servicesBuild in contract provisions for potential off-ramps and partial transitions

Pursue contract type(s) appropriate to riskCarefully structure contract incentives to control costs and incentivize program priorities and cost reductions

Should Cost is a PM Responsibility – but a multifunctional team effort

A B C

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

13Realized savings: ~$18M bundle-buy; ~$7.7M test efficiencies (FY12)

14

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

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_payments.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 – 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

16

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– Go out for 30 more days if necessary to get competition, or if

only one, do cost analysis. 20

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 non-competitive 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 ContractingTools:• 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

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.

ARRTAcquisition Requirements Roadmap Tool Suite

PWS

QASP

PRS

A job aid using standard templates for PWS, QASP and PRS to help you organize and write performance requirements following the Requirements Roadmap process.

• Runs on Microsoft Office applications • Generates Microsoft Word documents for use in your

acquisition

http://sam.dau.mil/arrtDFARS/PGI at 237.102

26

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

29

• 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.

7.Proper Use of Interagency Agreements

A Violation of the Anti-deficiency Act?30

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 intra-agency 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 non-DoD 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• Ensure expected return of a new contracting vehicle is worth the cost

of planning, awarding and managing it

33

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

35

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

36

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 sub-grant 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

What’s the System Landscape Today?

37

The Procurement Process from a Government Agency Perspective

GenerateRequirement

ReviewOffers

EvaluateOffers/Select

Vendor

AdministerContract

ContractClose-Out

Includes FedTeDS

SolicitRequirement

CreateContract

Post solicitation

and tech data

Receive bids

Validate entity status

Validate entity performance

Check wage determinations

Entity dataContract data

User action

Includes FedReg

► Federal/IAE systems support the acquisition or award process

Includes FSRSIncludes CPARS

Report performance

Report contract actions

38

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

• Siloed – Separate systems, each with a separate login

• Redundant – Overlapping data

• Separate – Various hosting locations, managed separately

► Login! – Functionality accessible at one online location to streamline the process

► Data Source! – Centralized, normalized data to eliminate potential for conflicting values

► Host! – Consolidated hosting to reduce O&M costs

► Login! – Functionality accessible at one online location to streamline the process

► Data Source! – Centralized, normalized data to eliminate potential for conflicting values

► Host! – Consolidated hosting to reduce O&M costs

Future

Existing capabilities, streamlined for efficiency.

Includes FedReg

Includes FedReg

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:− Accounting Systems− Estimating Systems− Purchasing Systems− Earned Value Management Systems (EVMS)− Material Management And Accounting Systems (MMAS)− Property Management Systems

39

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:

– Cost reimbursement contracts– Incentive type contracts– Time-and-materials contracts – Labor-hour contracts

• Progress payments• Performance-based payments

40

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

43

SET-ASIDE PROGRAM `

COMPETITIVEACTIONS >$3000 AND < SAT

COMPETITIVEACTIONS >SAT

SOLE SOURCE

SMALL BUSINESS

Automatically reserved for set-aside for small business if two or more offers anticipated FAR 19.502-2(a)

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

8(A) KO may set-aside prior to a small business set-aside

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 small business set-aside

Shall consider set-aside if two or more offers anticipated. If the requirement is currently in the 8(a) program, must remain in 8(a) program unless released by SBA

If <$6.5M for Mfg and < $4M for all other 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

SDVOSB KO may set-aside prior to a small business set-aside

Shall consider set-aside if two or more offers 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

WOSB / EDWOSB

KO may set-aside prior to a small business set-aside within the appropriate NAICS

Shall consider set-aside if 2 or more offers anticipated within the appropriate NAICS. If the requirement is currently in 8(a) program, it must remain unless released by SBA

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– $6M threshold changed to $2M for justification

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

www.sba.gov/wosb46

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

48

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)

– 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.

49

BRAIN HURT?

• Some help keeping up or looking up information

50

Acquisition Central

51

Federal Contracts Report

52

Defense Acquisition Portal

53

National Contract Management Association

54

http://www.wifcon.com/

Where In Federal Contracting

55