What’s Hot in Acquisition

1. What’s Hot in Acquisition Jack Kelly, Office of Management & Budget Karen Pica, Office of Management & Budget Dianne Rose, Social Security Administration Linda Ott, Federal Acquisition Institute

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

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

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

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

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

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

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.

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.

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

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

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

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

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.

15. Products vs Services

16. Acquisition Workforce Retain skilled professionals Attract new professionals Career development Share knowledge Recognize and reward excellence This is YOU and Thank You!

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

18. 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 Wadejwade@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 OFPPPoints of Contact