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Jacques Gansler, former deputy undersecretary of Defense for acquisition, technology and logistics, on Friday advised agencies to take a strategic approach to strengthening their workforce and to avoid the "global war on contractors."

The phrase has been used in reference to the Defense Department's plan to convert more than 3,000 contractor positions to federal jobs, he said during the National Contract Management Association's annual conference in Bethesda, Md. A quota-based approach to finding the correct balance of federal employees and contractors is dangerous, the former acquisition chief said.

"I'm concerned about it not being treated as a quality issue," said Gansler, who now is director of the Center for Public Policy and Private Enterprise at the University of Maryland. "If hiring is treated as a quota, it's not going to satisfy the need."


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Gansler said boosting the acquisition workforce is government's top procurement-related challenge. Other key priorities should include making more cost-conscious procurement decisions, speeding the acquisition process and balancing resources to address 21st century needs, he said.

Defense officials in particular do not give enough thought to projects' price tags, according to Gansler. He noted funding often has been available through supplemental spending bills, if not through the regular appropriations process. "It's been a rich man's world over the last eight years," he said. Cost will become more of a consideration as lawmakers and the Obama administration clamp down on spending, he noted.

"It's very clear that for discretionary areas like defense, the budget is dramatically declining," Gansler said. "And I'd be willing to take a bet as to the direction of this curve as we become increasingly aware of the impact of overall budget issues."

Gansler said Defense should do more to discourage frivolous bid protests. "In the NFL, you get penalized if you protest arbitrarily or capriciously," he said. "No one in the defense world loses anything for protesting. You can hold up the program for several years, try to get on as a subcontractor, negotiate around it. We need to think of some disincentives for protesting rather than incentives."

An influx of protests has prompted Defense to award large contracts to several companies and then force them to compete within that agreement for specific work, he noted, citing one example in the Army where there were 142 winners on a contract.

"That may avoid protests, but think of the incredible cost to the government and industry as they compete within that contract," Gansler said.

He also took the controversial position that increased competition isn't always the best solution.

"If the current contractor is doing a good job and getting a higher performance at lower cost, there is no reason to maximize competition," he said. "We should reward them by giving them the follow-on, but retain the option to compete."

COMMENTS

  • "Global war on contractors" - oh please! For years I have worked side by side with conrtactors and most were very good - just like most of the government employees were very good. Where the disconnect comes, is when company that contractor belongs too gets paid $500,000 a year (or better) for one or two people and that contract is renewed over and over again - sometimes for 20 years or more. This is absurd and does NOT save the government money.
  • I think that a major factor in protests is the complexity and expense of competing. The source selection process has long been out of control, and efforts to simplify it have not received adequate management support. It is not unusual for a source selection to take a year or more, even for relatively routine service procurements. The expense to competing firms can be immense, and when they lose they often get a garbled explanation from some contracting officer who keeps saying: "I can't tell you that. I can't show you that." Simplifying and speeding up the process and making it less expensive might reduce protests. So might providing a coherent explanation and more disclosure during debriefings.
  • Fascinating. No one worried about quality during the Bush Administration when nearly every competency in the federal workforce was diminished in favor of outsourcing. First Reagan, then Bush, the attitude that somehow the private sector can do it better has been disproven. All that happens is accountability goes down, cost goes up, the ability to monitor contractors goes down as organic skills erode. Contractors monitor other contractors and public values suffer in the pursuit of profit and corporate growth. Bring the jobs back in house, have government do inherently governmental work, and tighten the screws on those whose motive do not align with the best interests of the United States.