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YOUR FEDERAL CUSTOMER IS GETTING SERIOUS ABOUT SUPPLY CHAIN SECURITY

“What are you doing to advise and inform your supply chain integrity?”  Bill Evanina, director of the National Counterintelligence and Security Center wants to know.  In recent remarks, Evanina emphasized that secure supply chains are everyone’s business, including contractors and acquisition professionals.  Indeed, Evanina sees the acquisition process as one of the weak links in ensuring supply chain security. In addition to a lack of full understanding of what supply chain security looks like, even basic steps may be lacking.  “If you going to award a contract for a printer or a fax machine, just Google the company and make sure they exist.  Let’s just make sure they are a legitimate company.”  He went on to point out findings in a recent Navy systems report that found, “The systems the U.S. relies upon to mobilize, deploy and sustain forces have been extensively targeted by potential adversaries, and compromised to such extent that their reliability is questionable.”  That, at a minimum, should get everyone’s attention.  Evanina’s remarks yield two key take-away’s for contractors:  First, companies must take steps to secure their supply chains and be prepared to show those steps.  Second, those companies with secure supply chains should pro-actively market the fact and should gain an edge in competing for business.  Conversely, companies that still think that secure supply chains don’t matter may want to invest in them or find that their government customers have left them behind.

SMALL BUSINESSES FACE POTENTIAL NEW CHALLENGES

The Section 809 DOD acquisition reform panel wants to eliminate DOD small business set-asides in favor of a 5% bid offset.  OMB wants to cut the number of contracts, inevitably cutting the number of small business contractors.  The SBA is conducting ever-more intrusive searches into small business finances.  Oh yeah, you’re also still competing for business against companies of all sizes.  Doing business with the government has never been easy for many small businesses, especially those without any further socio-economic designation.  It’s not getting any easier now, aside from changes at the VA to favor small and small disabled veteran-owned businesses.  Small business owners can be excused if they’re a bit paranoid.  What to do in these situations?  First, don’t panic, but do pay attention.  Make sure your voice is heard on potential changes like the Section 809 recommendation.  Second, focus on being the best business you can be.  That usually means focusing on a specific universe of current and potential customers.  Third, make sure you have the right relationships, whether with an agency or other contractors.  No matter what happens with rules and regulations, relationships matter.  Paying attention to your surroundings and staying focused on what’s ahead of you isn’t just great advice for teenage drivers.  It can help your small business ride the wave of changes and still succeed.

GSA MOVING FORWARD WITH NEW CONTRACT WRITING SYSTEM

Could the era of “Solicitation by Xerox” be coming to an end?  GSA wants to modernize its contract writing system to streamline the process and, presumably, help ensure that the right contract clauses end up with the right contractors.  The agency is holding an initial industry day on April 18th to share its current systems and processes on contract writing with industry.  It’s probably not for the faint of heart.  Stories proliferate today on companies that have one part of their offer mixed in with half of another company’s offer.  Similarly, obsolete contract clauses have been known to be inadvertently included in new contracts as CO’s go by the “we’ve always done it that way” adage.  It’s amusing, except when it leads to serious compliance problems for companies – an all too real reality for several current Schedule contract holders who thought they had agreed to one set of terms, only to find out that that’s not what the copy machine spit out.  Here’s hoping that the new contract writing tool will both speed things up and put an end to mistakes that cost everyone time and money.  GSA has promised a second industry day as early as May.  Stay tuned for how a new contract system may benefit you.

A BUSTED BRACKET IS NOT AS BAD AS A BUSTED CONTRACT

Is your March Madness bracket busted?  That hurts, but not nearly as much as a busted federal contract.  It’s one thing not to know that a pesky 13 seed can upset your pick.  It’s quite another not to know whether you’re compliant with key contract terms.  No matter whether you’re an experienced contractor, or a newer market entry, it’s a sure thing that your company doesn’t know – or at least isn’t focusing on – issues that can cost your company money and time.  Waiting till later is never a good strategy, whether its contract compliance or seeing that medical specialist you’ve been putting off.  The problems only get larger and more difficult to deal with.  Make sure your contracts and federal business stay healthy.  Allen Federal consistently receives top scores for delivering on-point training that is both educational and entertaining.  See what we can do for you.  Contact us at info@allenfederal.com.

GSA SHARES DETAILS ON SCHEDULES CONSOLIDATION

New Schedule contracts and modifications will continue to be awarded under the present terms and conditions until October 1st according to information shared this week by GSA officials with the Coalition for Government Procurement.  After October 1st, contracts will be awarded under a new set of standardized terms and conditions.  Renewals will be handled under the “old” system until January 2020 when a mass mod will be issued to all existing Schedule contractors.  Prior to any of this, however, GSA will issue a draft of the new terms and conditions for comment in early June.  Contractors are strongly advised to review and comment on the proposed terms.  Similarly, no mass modification should be a “click and accept” action.  Many contractors negotiated specific terms and conditions to make their Schedule contracts manageable.  Although GSA does not intend for those terms merely to be swept away by accepting a mass mod, they almost certainly would be.  As such, we recommend reading and taking exception with any new terms that conflict with any you have specially negotiated.  Similarly, contractors should know that GSA will not be able to change all of the taxonomy associated with the new contracts overnight.  As such, you will have to educate your customers on proper use of Advantage and E-Buy once new terms are issued until such time as GSA’s internal resources can change those systems.  This entire exercise is the second phase of GSA’s Schedules consolidation initiative.  No contracts will be consolidated under this phase unless a contractor initiates such an action. Only the terms and conditions will be altered, though the agency may also start to transition away from Special Item Numbers to North American Industrial Codes (NAIC’s).  Make sure you’re paying close attention to the changes coming soon to a contract near you.