Open Dialogue on Improving How to Do Business with the Federal Government 2. Procurement Rules and Practices

Issue: The overly complex, burdensome ordering procedures for the establishment of Blanket Purchase Agreements (BPAs) under the GSA Schedules program. Specifically the preference for multiple award BPAs over single award BPAs. The strong preference of multiple award BPAs undermines the ability of customer agencies to achieve best value outcomes using the GSA Schedules program. It essentially limits the tools in the tool ...more »

Issue: Contract Duplication. Across the federal enterprise there has been an explosion in the number of multiple award IDIQ contracts for the same or similar services. Contract duplication increases bid and proposal and administrative costs for customer agencies and contractors. Contractors are compelled to compete for contracts for fear of being locked out of a market. At the same time there are many IDIQ contracts ...more »

Issue: Reform the MAS Pricing Policies. Specifically, eliminate the Price Reduction Clause (PRC), GSAR Clause 552.238-75. The current MAS pricing policies do not reflect current practices in the commercial market place. The pricing policies are inconsistent with the statutory and regulatory mandates for competition at the order level. The increased transactional and contract administration costs for compliance with the ...more »

Issue: Failure to incorporate/utilize FAR 52.212-4, Alternate I in Multiple Award Schedule contracts. This gap in the MAS program limits competition, increases costs, fosters contract duplication and reduces efficiency. FAR 52.121-4, Alternate I provides the contract mechanism/procedures for including Materials, Other Direct Costs and Indirect Costs in commercial item contracts. The failure to utilize this FAR-based ...more »

Over the last decade, the number of laws, regulations and provisions that apply to commercial item have dramatically increased. For example, in 1996 under 52.212-5(b) there were 17 provisions of law or executive orders identified as applicable to commercial item contracts. In 2012, the number has climbed to 51. The resulting explosion of statutes and regulations applicable to commercial item contracting increases complexity, ...more »

The FAR needs a top to bottom scrubbing as well as some thought as to how its utility could be improved. Many sections of the FAR were developed years ago or pieced together from predecessor regulations dating back to the 60s when Federal procurement was supply-focused. Other sections of the FAR are a patchwork of concepts that, while "politically correct" at inception, no longer suit the needs of modern procurement and ...more »

The most ironic display of waste in the federal acquisition system is multiple websites referencing the FAR. There needs to be one, and just one, government-run website referencing the FAR with all the benefits of the other sites.

Acquisition.gov/far can do the job of http://farsite.hill.af.mil/vffara.htm in addition to other FAR sites out there.

Contracting officers and specialists spend days each year going through proposal spreadsheets, correcting unintentional errors, and performing price analyses, cost analyses, and cost realism analyses. Technologically, the US is easily at the point where offerors can log into a single, web-based application and key in their data in designated fields. The fields automatically catch adding errors and rounding errors, which ...more »

It is expensive, time consuming and distracting for small businesses to prepare proposals. For some of the larger federal contractors in the Department of Energy, a new method of "Award Term" has been used to reward exemplary performance by addiing additional years to the term of the contract for each year of high performance. This would help many small businesses who often invest a year or two of profit on a three-five ...more »

A significant challenge in procuring cloud-enabled IT services involves structuring an appropriate method of payment. For something simple, like Infrastructure as a Service, agencies should be able to contract directly with a cloud service provider without having to fund upfront (in effect, pre-paying) for a projected level of service consumption. These types of procurement arrangements are typically fixed price. This ...more »

The Federal Government is always interested to implement activities which are "Best Practices" in the Private Sector. I would like to suggest that one of these "Best Practices" is the Cost-Benefit Analysis (CBA). In the Private Sector, whenever a new policy is being considered, a CBA is performed to evaluate whether to proceed with the new policy. Unfortunately, a CBA was never performed for the Federal Strategic Sourcing ...more »

Notwithstanding the OFPP Act's intent to create a thoughtful,disciplined, and limited regulatory system, Federal agencies have increasingly ignored the system's requirements and proliferated duplicative, conflicting, unnecessary, and ill-designed local requirements that greatly frustrate the contracting community. Most disturbing is the rampant failure to: 1) follow statutory requirements for publicizing and obtaining ...more »