Monthly Archives: August 2024

ONE MONTH TO GO, THREE THINGS TO FOCUS ON

Contractors of all stripes should be seeing increased business levels with essentially one month left in the 2024 federal fiscal year.  The next month will literally be a sprint to the finish, though one that could look more like the high hurdles for some contractors.  Here are three things to focus on now to finish the year strong:  1.  Communicate:  Make sure that you’re in consistent communication not only with potential federal buyers but industry partners as well.  Never assume that either of these important targets remember you or your solutions.  Don’t just Read more

PROTEST HEADWINDS PUSH BACK GSA GWAC PROGRESS

Protests continue to plague large Government Wide Acquisition Contract (GWAC) programs.  While GSA is not the only agency to see the impact of protests, two of its higher-profile acquisition programs are now delayed because of them.  Most recently, the OASIS+ program has been hit with seven GAO protests over decisions to award, or not, contracts to certain companies on the OASIS+ small business contract.  The only good news there is that there appears not to be any protests at the Court of Federal Claims, meaning that resolution could be faster and the program allowed to move forward once the known protest issues are addressed. Read more

EXPECT A SHOWDOWN OVER DEFENSE SPENDING THIS FALL

As we reported earlier, the Senate left Washington at the start of August by passing its version of the FY’25 defense appropriations bill with a significant increase in funding over what the administration had asked for in its original budget request and from what their House counterparts had been considering.  This sets up a potential conflict with House deficit hawks when Congress returns in September.  Similarly, a review of the different defense authorization measures being worked on in each chamber shows that spending conflict could very well spread.  The Senate bill calls for more funding in many areas than its House Read more

FIVE IDEAS THE NEXT ADMINISTRATOR AND FAS COMMISSIONER SHOULD CONSIDER TO IMPROVE GSA’S NON REAL-ESTATE SIDE

With Congress out of town, the pace of federal year-end business increasing, and the Democratic Convention coming up, we thought we’d share our ideas now on changes GSA’s next political appointee management team may want to focus on for the Federal Acquisition Service (FAS).  We also welcome reader feedback and suggestions as we expect this list to evolve as the election and subsequent inauguration draw nearer.

 

  1. Create A True Schedules Management Office: The GSA Schedules program realizes over $40 billion a year in business, yet its operation is so highly decentralized that there is little continuity throughout the program.  The current Schedule Program Management Office (PMO) is a step in the right direction but does not have the resources or authority that are actually needed.  The GSA Alliant 2 and 3, OASIS and OASIS+ contracts all have true PMO’s that manage all aspects of those programs, even though the amount of business they conduct is far smaller than the Schedules.  The Schedules program is simply too important to the efficient running of government to not have an SES-led PMO.  Indeed, it is likely that officials in DOD, the largest Schedule customer agency, would be surprised to learn that the program they rely upon doesn’t already have one.

 

  1. Set a Sunset Date for the Technology Transformation Service (TTS): TTS seemed like a good idea when it was created:  a government agency to help others in government to maximize use of new technologies and maybe help develop them.  It’s never worked well, though.  The well-documented problems with Login.gov are only one example.  This relatively small office tied up considerable agency resources to try and straighten the problems out, distracting large groups of people from their core missions.  Worse, in an agency where most operations are supposed to be self-supporting, TTS continues to operate in the red.  NextGov reports that the service lost about $30 million in FY’22 with revenue of only $35.5M.  That makes TTS a truly small FAS business line, with every FAS IDIQ contract outperforming it.  While TTS may be a pet project for some, it’s tough to justify spending taxpayer dollars on a service few agency customers seem to want.  Give TTS 18 months to turn itself around or let it sunset.

 

  1. Reunite Acquisition Policy and Operations: The battle over whether these two FAS operations should be separated or integrated has raged for at least three decades.  Here’s our take on how that’s working:  While it may look good on paper to have the policy and operations functions separated, it doesn’t work well in practice.  The bottom line is that contracting officers and specialists end up falling into the inevitable chasm between the two and then must navigate a way forward for themselves.  Right now, this means relying almost entirely on tools to make important acquisition decisions.  As we’ve said before, tools are supposed to help you do your job, not do it for you.  Yet, the current reality is that there is no clear upside for taking a risk.  Policy people may chastise you, while operations people wonder why you didn’t use more latitude.  We can’t expect GSA’s acquisition operations to work well unless there is a unified management structure with clear lines of reporting and accountability.  Policy and operations need to be unified.

 

  1. Empower Leaders to Lead: FAS really does have a good leadership team.  The talented crew of senior careerists know what they’re doing much more often than not.  One of the problems, though, has been that senior appointee leaders have never seemed to fully either understand that, or figure out how to make that reality work for them.  An outsider may be tempted to look at some FAS management actions and liken them to Abraham Lincoln’s famous quote for General George McLellan: “”If General McClellan does not want to use the Army, I would like to borrow it for a time, provided I could see how it could be made to do something.” That doesn’t properly reflect reality, though.  Better cohesion between political and career leaders can ensure that each group more fully exercises its leadership muscles and makes the sometimes tough choices that need to be made so that FAS functions as it should.  Political leadership that makes it clear that they have the backs of careerists in difficult circumstances can go a long way toward bolder, more innovative decisions, increase transparency, and deliver better customer value.

 

  1. Understand the Role of the IG and the Role of Operations Offices: It is important to have a professional and well-organized Office of the Inspector General (OIG).  OIG offices play an important role in ensuring that government operates properly.  That said, GSA and FAS leadership need to understand that it is the role of the OIG to find problems.  Some uncovered problems are legitimate.  Others, however, such as the GSA OIG’s opposition to the agency’s legislative request to make a common sense change to the Competition in Contracting Act, seem more rooted in a fear that their own role will diminish, rather than a legitimate policy disagreement.  While GSA and FAS management are expected to, and should, treat the OIG with respect that’s a two-way street.  Similarly, the OIG is not, and should not be, a de facto co-program manager.  GSA and FAS management should remember that the OIG’s goal is to second guess the decisions they make.  Looked at through that lens, the agency could really implement innovative acquisition ideas, saving time and money.

 

We certainly have additional ideas on GSA and the Federal Acquisition Service.  We’d like your feedback, though.  Send us a not-for-attribution email at lallen@allenfederal.com.

EARLY Q4 ANECDOTAL EVIDENCE SHOWS MIXED EXPERIENCES SO FAR

Federal contractors are reporting mixed results as the first month of the federal fourth quarter comes to an end.  Smaller, product-focused businesses are reporting slower sales, while larger, service-based businesses are reporting something similar to “business as usual”.  This is no surprise for several reasons.  First, although the government does award service contracts right up to the end of the fiscal year, most larger projects are further along, with some already awarded and others scheduled for such action in the next few weeks.  Second, product buys are traditionally made late in the year, with this year’s exceptionally late appropriations actions likely pushing that back even further.  Reviewing Federal Procurement Data System (FPDS) spending information is also of limited utility at this time of year with DOD spending being one- Read more