Reforming Government Contracting- deadlines loom

In March 2009, President Obama sent a memorandum to the Heads of the Executive Department and Agencies outlining his plan to reform government contracting. Here is a link to a presidential press/media fact sheet on this memo. The intent of his memo is to call attention to the use of sole source and limited source contracting vehicles (that would include multiple award task/delivery order contracts), the need for greater contract management and oversight and the need to define "inherently governmental activities" that should not be outsourced.

Within the memo is a call to action for the Office of Management and Budget to issue guidance on how to award better contracts by July 1, 2009. That dealine is fast approaching. It would be great to be able to solve the government contracting problem with a piece of guidance written in less than 4 months.

September 30, 2009 is the date we will get the answers to these age-old contracting dilemmas (the answers are both basic and complicated, to say the least):

• How to use and manage sole-source and other types of noncompetitive contracts and to maximize the use of full and open competition and other competitive procurement processes;
• How to use and oversee all contract types, in full consideration of the agency’s needs, and to minimize risk and maximize the value of government contracts generally;
• Is there sufficient capacity and ability of the Federal acquisition workforce to develop, manage, and oversee acquisitions appropriately; and
• When is (or is not) governmental outsourcing for services appropriate.

Can't wait for the answers. Stay tuned.

Accountability in Contracting Act gathers contractor opposition

This earlier article has been replaced by news that the House "marked up" a version and later passed a similar version of this bill (HR 1362). What is it about?

Its primary purpose is to limit abuse-prone contracts- primarily sole source and cost-reimbursable. How? By:

Restricting the length of any contract over [originally SAP] $1,000,000 and using "other than competitive" procedures to the minimum period necessary [originally 240 days, as passed 1 year].

• to meet the urgent and compelling requirements of the work to be performed and
• to enter into another contract through use of competitive requirements

Also, the originally introduced and passed bills:

• Require plans for reducing the use of sole source and cost-reimbursable contracts, including measurable goals.
• Increase contract oversight, by publicly disclosing J and As and disclosing audits and other reports that describe contractor costs over [Originally $1 million] $10 million that are unsupported, questioned or unreasonable.

[The bill as introduced added funding contract oversight by increasing amounts for hiring, training, contract planning, contract administration,oversight and audits by an amount equal to one percent of the aggregate amount of contracts awarded during that fiscal year. (my emphasis)]

FInally, the bill hopes to close what it perceives as legislative "loopholes" and will deter corruption in contracting by further restricting the time for a federal employee to start working for a contractor.

Check out the articles and bill to see what is coming down the pike. This has to go to the Senate as well, so it is not a done deal, yet.

Issue sole source J&As before presolicitation notice? GAO says to think about it!

The results of this GAO protest includes an interesting thought. Should a sole-source J&A be approved before the results of a pre-solicitation notice are known? According to the decision,

We think agencies undercut their credibility when they prepare and execute
sole‑source J&As on the basis that there is only one responsible source
available, before the time they have received expressions of interest and
capability from potential offerors.

The writers of the decision admit that it is probably not a violation of procurement law but, doing the J&A first

...may increase the risk that an agency’s market survey, and other bases for its
sole-source decision, will ultimately be shown to be unreasonable.

It makes sense. It would seem less than fair to say there was only one source before using all the tools of market research, including the presolicitation notice.