Monday, June 28, 2010

DoD Needs to maintain flexibility to deliver better outcomes to warfighters, taxpayers

The Defense Department plans to slice more than $100 billion from its budget over the next five years and, happily, it has decided to do so with the input of industry, the acquisition workforce and other stakeholders who would be affected by the trimmed back spending.

PSC was one of a handful of industry associations invited to a special meeting with Undersecretary of Defense for Acquisition, Technology and Logistics Ashton Carter on June 28. PSC’s Executive Vice President and Counsel Alan Chvotkin participated in the meeting where Carter presented proposed guidance that includes calls for acquisition professionals to buy competitively, choose the right contract for the job, include small businesses in multiple award contracts, and reward excellent contract performance.

“We share the goals that Undersecretary of Defense Carter has identified for the department and while many of the recommended guidelines—such as increasing competition and choosing the right kind of contract—are laudable, PSC is concerned about how the department proposes to implement them,” Chvotkin said after the meeting.

“Services covers a broad span of activities and no one size fits all. Yet some of his initial recommendations may unnecessarily limit flexibility,” Chvotkin said. “For example, the department is right to focus on choosing the right contract vehicle, but why take a tool out of the toolbox by eliminating time and material contracts?”

PSC will present its recommendations in meetings with department officials over the next few weeks. What DoD will do with this information remains to be seen. Carter said he will issue final guidelines by the end of the summer. But the fact that he asked industry for feedback is an encouraging sign that the forthcoming guidance could result in smart contracting.