DOD Authorization - A Contracting Smorgasbord
The annual DOD Authorization bill has become the only means for getting contracting bills passed and presented to the President. Despite numerous stand-alone contracting bills passing the House and Senate, very few survive and they are eventually crammed into the DOD Authorization bill. This process has been occurring for a few years. One concern, however, is the extra steps necessary to ensure that the reforms apply government-wide and not only to DOD.
This year's Defense bill includes nearly 50 provisions that will affect government contract spending for many years. Here's a short summary of some of the important provisions:
Sec. 831 - Personal service contracts (when contractor personnel appear to be government employees) are generally prohibited under FAR Subpart 37.104. This section provides for a clear distinction to be made between DOD and contractor employees, and requires safeguards related to entering into such contracts and steps to mitigate risks. It only applies to the DOD.
Sec 832 - Provides guidance about the use of private security contractors in an area of combat operations. Congress is clearly uneasy with the idea. This section places "sole discretion" with the combatant commander, and advises the military to have appropriate personnel to perform security functions to prevent them from relying on private security contractors. Applies to DOD only.
Secs. 833 & 834 - We have all been brainwashed to believe that the only problem with federal contracting is the depleted acquisition workforce. The solution is here--expedited hiring authority and improved retention mechanisms. POGO believes that the workforce issue is part of the problem, but more needs to be done to give federal employees the tools they need to improve federal contracting. Applies to DOD only. Additional workforce enhancements are located in Secs. 869 and 870.
Sec. 841 - Contractor ethics has been a hot topic, and in this section, Congress directs the Office of Federal Procurement Policy (OFPP) to develop and issue policies to prevent personal and organizational conflicts of interest and protect inherently governmental functions for contracts greater than $100,000. A forthcoming conflict of interest clause will be inserted into contracts. This provision applies government-wide.
Sec. 842 - DOD must ensure that contractors inform their employees in writing of employee whistleblower rights.
Sec. 862 - Noncompetitive contracts greater than $100,000 will be limited in time, generally 1 year or less. This provision applies government-wide, and is essential to increase competition and protect taxpayers.
Sec. 864 - Senator McCain isn't getting his wish for no cost-plus contracts, but in this section, Congress requires improved guidance for cost-reimbursement contracts.
Sec. 866 - For years we have heard about contract brokers who subcontract all work and the multiple layers of subcontractors (3, 4, or 5 tiers deep) that result. This section attempts to limit civilian agencies and their excessive use of subcontracts that add little or no value to the contract.
Sec. 867 - Award and incentive fees should be based on outcomes. Brilliant!
Sec. 868 - Minimizes abuse-prone commercial service purchases. Congress wants assurance from government officials before designating certain services as commercial. Those that are not offered or sold in the commercial marketplace, "but are of a type offered and sold competitively in substantial quantities in the commercial marketplace," must have written information from the contractor justifying the price. POGO has been concerned with noncommercial products being designated as commercial because many oversight protections are eliminated and the government is often paying higher costs and prices.
AND, last but NOT least:
Sec. 872 - Government officials will be required to review the federal contractor responsibility database to ensure that contract and grants are awarded to responsible contractors only. Although this provision applies government-wide, the database isn't available to the public. It will provide federal officials with five years of information on federal and state civil, criminal, and administrative proceedings in connection with the award or performance of contracts and grants that are greater than $500,000. Although the wording of this section is limited in scope and the types of proceedings, POGO believes that it will provide a valuable tool for government officials to protect taxpayers and hold contractors and grantees accountable. Current checks of past performance and responsibility are inadequate. POGO's Federal Contractor Misconduct Database will continue to be updated until the federally maintained database is expanded in scope and made publicly available. Sec. 873 makes improvements to the Interagency Committee on Debarment and Suspension, which will also assist government efforts to protect taxpayers from risky contractors.
-- Scott Amey
Dear Readers, 10/10/2008
Thank you POGO for this/another Great Article !! which I very briefly viewed and hopefullly I will read more thoroughly in the near future. (In Section 864, which I have not yet read and possibly if appropriate for future review and consideration would minimal performance criteria need to be established and at intervals to offset any potential significant cost overruns and with substaintial penalties and withholding of payments and immediate contract cancellation and/or reasignment.)
Also, it appears clear and convincing and I assume would be concurred by a reasonable person that the restoration of our 'WE THE PEOPLE' Democracy, US Constitution and US Bill of Rights and seemingly necessary impeachments and ESPECIALLY THE IMMEDIATE PASSAGE OF HR985 FEDERAL EMPLOYEE WHISTLEBLOWER PROTECTION and hopefully with proper and forthright, fair and reasonable CORPORATE WHISTLEBLOWER PROTECTION, would seemingly I presume be proper and forthright within fair and reasonable expectations towards our Great Country with Life, Liberty and Happiness for all.
Thank you and all for your time and consideration.
Sincerely,
Axel
Posted on: Oct 10, 2008 at 03:09 PM