Contractor resources for addressing government shutdowns
Source: Federal Government shutdown, CRs, and what contractors need to do | Lohfeld
In today’s Federal Newscast, a new report from the Homeland Security Department’s Office of Inspector General found that the agency has no centralized database to make sure suspended companies don’t compete for new contracts.
Here’s a reminder to everyone that when reviewing the FAR cost principles to determine whether a particular cost is allowable or unallowable (or amount is capped) it is also necessary to consider cost principles in the individual FAR supplements for whatever Agency issued the contract. Most Agencies have a FAR supplement and some of those include revisions or further restrictions on costs.
Source: PNWC’s Government Contracting Update: DoD Restrictions on Fringe Benefits
In its past performance evaluation, an agency typically can consider the past performance of an offeror’s affiliate, so long as the offeror’s proposal demonstrates that the resources of the affiliate will affect contract performance.
Source: GAO: Evaluation of Affiliate’s Past Performance is Optional – SmallGovCon
Here’s an interesting trivia question for all you acquisition lovers in the government: How many rules did the Federal Acquisition Regulations Council finalize during the first year of the Trump administration?
As individual companies, federal contractors are mostly doing okay. As an industry, they see uncertainty everywhere. One source of uncertainty is the somewhat chaotic and worsening situation of security background checks. The Government Accountability Office has put it on the high-risk list. David Berteau, president and CEO of the Professional Services Council, joined Federal Drive with Tom Temin to share the industry reaction.
Source: David Berteau: Federal contractors worry more about security background checks
The National Defense Authorization Act (NDAA) of 2018 gave federal agencies at least some of what they’ve wanted for years. Namely, a special pot of money dedicated to modernize IT systems and the services they deliver.
That will change how IT is marketed and sold this year. Agencies already set aside money for these procurement projects. But the governmentwide increase could help speed up progress, according to Bloomberg Government’s Dan Snyder.
Source: NDAA gives agencies special funds for modernization of IT systems, services
Over the years, some have questioned whether GSA Schedule prices are fair and reasonable, and such concerns have led to the General Services Administration launching efforts, such as Transactional Data Reporting and horizontal pricing analysis, to demonstrate that it is dedicated to offering its customers “competitive” (however defined) prices. Now comes an MBA Professional Report published by the Naval Postgraduate School, which provides a business case analysis comparing GSA Advantage to Amazon Business from the standpoint of prices and processes. The study was completed in response to a request from the Air Force, which is considering entering into a pilot with Amazon Business in order to strategically source micro-purchases using an online platform.
Source: Urban Myths: Are GSA’s prices fair and reasonable? – FederalNewsRadio.com
Government contractors know and understand that where they were required to submit certified cost or pricing data and where the Government relied on that certified cost or pricing data when negotiating the contract price, are also subject to “defective pricing” audits after the contract is awarded. A defective pricing audit looks for factual information that existed at the time negotiations were completed, were not disclosed to the Government, but if had been disclosed, would have had a significant impact on the negotiated price.
Source: PNWC’s Government Contracting Update: Defective Pricing Indicators
All too often I hear stories of how federal agencies issue requests for information simply as fishing expeditions with no real intent on following up with a formal solicitation. I believe RFIs are a critical tool in helping agencies conduct market research, identify interested companies and eventually narrow the pool of potential bidders, but if the RFI doesn’t turn into a contract opportunity, is government living up to its end of the bargain? The same might be said for BPAs, IDIQs and other contract vehicles that are “awarded” but not used to their full potential post-award.
