Devil is in the details regarding Defense spending guidance

Defense Department plans to increase competition and cut overhead costs and red tape associated with procuring goods and services have mainly met with praise from industry leaders and lawmakers -- the two constituencies most able to derail reform. But full support will depend on implementation details that Pentagon officials are still working out.

Reps. Rob Andrews, D-N.J., and Mike Conaway, R-Texas, longtime proponents of acquisition reform at the Pentagon, praised Defense Secretary Robert Gates and his top acquisition official Ashton B. Carter for issuing guidance earlier this week aimed at increasing productivity and efficiency in spending.

"We applaud Secretary Gates and Dr. Carter for tackling acquisition reform and for embracing many of the reforms identified in our panel's report and in the House-passed IMPROVE Acquisition Act to meet this end," they said in a joint statement, adding, "We must learn more about the department's plans in the weeks ahead, but we look forward to working with DoD on these efforts."

Likewise, Aerospace Industries President Marion Blakey welcomed the initiative and the department's outreach to industry in developing the new objectives. "While we have questions regarding some of the proposals, we are confident that the cooperation between government and industry as these initiatives are developed and implemented will produce results that will benefit all stakeholders -- most importantly, the warfighter and taxpayer."

"I don't think there's much objection to the objective," said Stan Soloway, president and chief executive of the Professional Services Council, an industry trade group. "The message has been they want to be collaborative. The message has been this is not about arbitrarily cutting; it's about finding better ways to do business."

Nonetheless, industry officials are concerned about some aspects of the reforms. "One area where I do have concern, not covered in [Carter's] memo, is you have the secretary's directive to lop off 10 percent of at least some category of service contracting. That seems to run contrary to the strategic approach of the Carter guidance," Soloway said.

Another issue of concern to service contractors is the question of competition. Carter noted that 28 percent of competitive awards for service contracts had only a single bidder and department officials believe they need to inject more competition into those procurements.

"I don't disagree that they ought to be doing whatever they can to maximize the competition. That is clearly the right objective," Soloway said. But it's not unexpected that some percentage of contracts, especially for work that is being rebid, would not attract more than one bidder if the incumbent contractor is understood to be performing well.

"You're not going to spend your bid and proposal dollars to compete for something where the chances of winning and unseating the incumbent are really extreme. But that pressure is nonetheless always on the incumbent because they know if they stumble there's any number of predators ready to pounce," Soloway said.

Contracting officials should make sure their requirements and performance work statements invite innovation, and thereby attract increased competition, he said. "The government talks about innovation, but it's not at all clear at the end of the day if that's what's they're rewarding," he said.

Soloway worries budget pressure is driving many contract awards away from best value bidders to lowest-cost bidders.

"In a tight budget environment, the tendency is to squeeze every nickel you can out of something, but that doesn't necessarily go along with looking for more innovation and better value," he said.

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Sponsored by G Suite

    Cross-Agency Teamwork, Anytime and Anywhere

    Dan McCrae, director of IT service delivery division, National Oceanic and Atmospheric Administration (NOAA)

    Download
  • Data-Centric Security vs. Database-Level Security

    Database-level encryption had its origins in the 1990s and early 2000s in response to very basic risks which largely revolved around the theft of servers, backup tapes and other physical-layer assets. As noted in Verizon’s 2014, Data Breach Investigations Report (DBIR)1, threats today are far more advanced and dangerous.

    Download
  • Sponsored by One Identity

    One Nation Under Guard: Securing User Identities Across State and Local Government

    In 2016, the government can expect even more sophisticated threats on the horizon, making it all the more imperative that agencies enforce proper identity and access management (IAM) practices. In order to better measure the current state of IAM at the state and local level, Government Business Council (GBC) conducted an in-depth research study of state and local employees.

    Download
  • Sponsored by Aquilent

    The Next Federal Evolution of Cloud

    This GBC report explains the evolution of cloud computing in federal government, and provides an outlook for the future of the cloud in government IT.

    Download
  • Sponsored by LTC Partners, administrators of the Federal Long Term Care Insurance Program

    Approaching the Brink of Federal Retirement

    Approximately 10,000 baby boomers are reaching retirement age per day, and a growing number of federal employees are preparing themselves for the next chapter of their lives. Learn how to tackle the challenges that today's workforce faces in laying the groundwork for a smooth and secure retirement.

    Download
  • Sponsored by Hewlett Packard Enterprise

    Cyber Defense 101: Arming the Next Generation of Government Employees

    Read this issue brief to learn about the sector's most potent challenges in the new cyber landscape and how government organizations are building a robust, threat-aware infrastructure

    Download
  • Sponsored by Aquilent

    GBC Issue Brief: Cultivating Digital Services in the Federal Landscape

    Read this GBC issue brief to learn more about the current state of digital services in the government, and how key players are pushing enhancements towards a user-centric approach.

    Download

When you download a report, your information may be shared with the underwriters of that document.