# Presentation: 381748

## Industry Brief

- by Skip Derick
- for
- IGC Meeting on 7/27/05

## HOT TOPICS

**GSA's Revolving Door Spins**

**HOT TOPICS**

## COMMENTS

- One senior Congressional staff member said that Shelton's appointment is a mistake. "It's disappointing that GSA has chosen to appoint someone to head its new Federal Acquisition Service who has virtually no federal acquisition experience and no standing whatsoever in the federal acquisition community," the staff member said. "Even more troubling is that Shelton comes from GSA's troubled regional management structure. Don't they realize that it was the pervasive acquisition mismanagement by GSA's regions that motivated House passage of the GSA Modernization Act, which authorized the new Federal Acquisition Service? Ironic indeed.“
- Fox joined GSA in 2002. Larry Allen, executive vice president of the Coalition for Government Procurement, said Fox had been accessible and open to industry concerns. "The Coalition has worked closely with Neal since he arrived at GSA and we appreciate his efforts to work with industry to streamline and modernize the procurement process," Allen said in a written statement.
- Fox's announcement came not long after Donna Bennett, commissioner of GSA's Federal Supply Service, which oversees the GSA schedule contracts, retired July 3. When Fox leaves, no one involved in GSA's reorganization effort will have hands-on knowledge from the senior-level on the schedule program, said Larry Allen, executive vice president of the Coalition for Government Procurement.

**HOT TOPICS (Cont)**

## HOT TOPICS (Cont)

**GSA Issues Draft Reorganization Plan**

- The proposed reorganization of the General Services Administration would combine the Federal Technology Service and the Federal Supply Service into a single Federal Acquisition Service (FAS), according to a draft plan released today. The new service would have a commissioner position to oversee its operation, and it would eliminate separate FSS and FTS commissioner positions.
- “The key goal for the new Federal Acquisition Service is to improve our organizational capability to efficiently and effectively deliver excellent acquisition services that provide best value for our federal agency customers and the American taxpayers,” said GSA administrator Stephen Perry in a statement.

- _Published on May 4, 2005_

- Rep. Tom Davis (R-Va.) has introduced a bill intended to guide the ongoing effort to reorganize the General Services Administration. ...*Create a new Federal Acquisition Service that combines the existing Federal Supply Service and Federal Technology Service...* Authorize the GSA administrator to appoint up to five "regional executives" for the Federal Acquisition Service...* Establish retention bonuses and other incentives to maintain the government's civilian acquisition workforce.

**Davis unveils GSA reform bill**

- _Published June 2, 2005_

**HOT TOPICS (Cont)**

## COMMENTS

- Officials from two industry associations—the Professional Services Council, which also represented the Contract Services Association of America, and the Information Technology Association of America—told GSA leadership the _[draft strategy](http://www.gcn.com/vol1_no1/daily-updates/35963-1.html)__ released earlier this month didn’t address of the issues surrounding the reporting structure of the new Federal Acquisition Service and the guiding principles of the reorganization. __ __“We have not heard that mission articulated, and do not believe it has been validated with key stakeholders inside and outside government,” said Alan Chvotkin, senior vice president for the Arlington, Va.-based PSC. “Missing from the guiding principles the administrator included in the draft plan was the element of compliance with the laws, rules and regulations that govern the agency, programs and contracts and the services the agency provides.” __ _

**HOT TOPICS (Cont)**

## Other Hot Topics

- Open Market Items (ODCs)
- FAR Amendment (FAR 8.402(f))
- G&A on Travel (and ODCs)
- Allowed by some, disallowed by others
- Pre Award Audits
- $2.5M Trigger point  - quote by Gene Wasley (Assistant GSA Inspector General)
- One Schedule
- What happens after Neil Fox leaves?
- Trade Agreements Act (TAA)
- Mainly products but service vendors need to pay attention also

## NEW MATERIAL

- _Published on Jul. 14, 2005_

**PSC Urges Sharp Limits On ‘Cascading'**

- The government should put an end to "cascading," a practice that makes procurements less competitive than they should be, according to the Professional Services Council. The council sent a letter today to Office of Federal Procurement Policy Administrator David Safavian to urge him to take action.

**Pentagon says GSA is OK**

- The Defense Department wants to avoid abusing contracting vehicles created outside the department, but DOD personnel can still use General Services Administration multiple award schedule contracts or other government-wide acquisition contracts, a Pentagon official said today. Pentagon guidance issued last October required military agencies to set up specific procedures for reviewing and approving the use of contracts managed by other agencies by the start of 2005.
- Some people have interpreted the memo "as precluding the ability to utilize the services of 'Assisting Agencies’ to meet DOD requirements," wrote Deidre Lee, DOD director of procurement and acquisition policy, in a memo released today. "These interpretations are incorrect."

- _Published on Jun. 17, 2005_

**NEW MATERIAL**

## NEW MATERIAL

**Training Seminar - Proper Use of Non-DoD Contracts**

_**Purpose: **_ The Office of the Secretary of Defense (OSD), in partnership with GSA and DAU, has been regionally conducting "Roadshow" training seminars entitled “Proper Use of Non-DoD Contracts.” The three hour seminar is designed to ensure DoD personnel understand the proper way to use non-DoD contracts. Contractors may attend to view what is being taught to their clients.

_**Agenda:**_
- Opening Remarks – Dee Lee, Director Defense Acquisition and Procurement Policy (Soon to be - Assistant GSA Commissioner for the proposed *Integrated Technology Services* business portfolio)
- OSD Presentation (Michael Canales - DPAP/Policy, Contract Specialist)
- Funding Data Input (Proper coding of contract and funding data in FPDS-NG)
- GSA Presentation (Emile Monette – GSA, Senior Procurement Analyst)
- Services Compliance Presentations (Army, DLA, USAF)
- - Closing Video (by Dee Lee)

_**Discussion:**_
- There was no new information pertaining to the OSD overall policy. The most interesting comments came from Dee Lee herself.
- The emphasis was “**It is DoD Policy to use non-DoD contracts when it is in the **_**best interest**_** of the Department.**”
- Dee Lee’s version is “It is OK to use non-DOD contracts as long as it is done “**properly**”.

**NEW MATERIAL**

## NEW MATERIAL

**Training Seminar - Proper Use of Non-DoD Contracts**

- Various points that were emphasized by Dee Lee include the following:
- 	Rules follow the money!
- 	Funding documents (MIPRs) need to include DoD unique Terms and Conditions (T&Cs); and the kind of 	$s.
- 	The most important considerations for DoD Contracting Officials/Program Managers when using non-DoD 	*contracts* and/or *assisted acquisitions* include “document, document, document”; assist *assisted **	**acquisitions* *agencies* to do it correctly; be more vigilant as to where the $s are (how they are being used 	and are they being tracked) and what are the results of the task order (vendor performance monitoring); 	and closely scrutinize the requirement scope vice the scope of the contract vehicle being used.
- 	The role of DoD contracting Officers in today’s environment should be that of a “Good Business Adviser” 	not just narrowly focused on the “DoD” way.
- 	There definitely is a “shortage” of personnel within DoD Procurement which is a good reason for DoD to 	consider using non-DoD contracts and assisted acquisition.
- All individual Service Plans have been put into place for the implementation of the OSD Policies and Procedures for Proper Use of Non-DoD Contracts**. **The Army’s plan was signed on 7/12/05 and is the most restrictive.

**NEW MATERIAL**

## Trade Agreement Act(As applied to GSA Contracts)

- 	“GSA officials stated this week that they are stepping up efforts to ensure that items sold through the MAS program are compliant with the Trade Agreements Act.  The agency is conducting active reviews, mostly through Industry Operations Analysts, to check on compliance.  Any items found not to be compliant will have to removed at once.  The comments came during a discussion the Coalition set up between GSA officials and representatives of the US Trade Representative’s (USTR) office.  Products and services offered through the MAS program must come from designated end countries that are party to the WTO’s Government Procurement Accords.  USTR officials again urged industry to provide them with information on items not sold through the MAS program because of non-compliance with TAA origin rules.  They believe that such information will strengthen their hand in discussions with China and other non-compliant countries and encourage them to enter to the WTO Government Procurement Accords.  The Coalition will continue to work with USTR and GSA officials on this important issue.”
- Coalition of Government Procurement Friday Flash 24 June 2005

## LATE BREAKING NEWS

**Senate committee seeks GSA reorg sign-off (**FCW 7/22/05**)**
- “...The Senate Appropriations Committee approved the spending bill today. The bill itself prohibits GSA from reorganizing its structure without approval by the House and Senate appropriations committees...”
**Fiscal Year 05 Cut-Off Dates for Assisted Acquisitions**

## DISCUSSION & NEW ITEMS OF INTEREST