Thursday, June 24, 2010

Smart Contracting Outlook: FY 2011 NDAA is a Mix of Smart and Not-so-smart Contracting Policies

The Professional Services Council’s own Stan Soloway and Alan Chvotkin briefed the media on our take of the House and Senate versions of the fiscal 2011 National Defense Authorization Act.

Conclusion: some provisions are smart contracting, others…not so much.

Take the House provisions on insourcing. The provision that prevents agencies from setting insourcing quotas: Smart. Agencies should think strategically before insourcing to ensure what is brought in house truly needs to be performed by the government to provide the essential “organic” capabilities needed to keep the government in the driver’s seat.

However, a provision telling agencies to insource any work currently contracted out or any new work, thus encouraging insourcing of non-strategic functions found in any phone book: Not smart. Budgets are already tight and hiring authorities are limited. Agencies shouldn’t be wasting time and money insourcing work that is not mission critical and won’t save taxpayer dollars.

Another example of smart contracting in the NDAA is a provision in the House version establishing a pilot program to allow the Defense Department to award private security contracts based on best value. Given the complexities of private security, agencies should be given the flexibility to hire the best trained and staffed firms, even if they are not the lowest price.

Other provisions in the bill, while well intentioned, could have unintended negative consequences in the long term. For example, provisions in both bills would create rapid acquisition authorities for a number of market sectors. While such actions may look good on the surface—agencies should be able to get what they need quickly—the provisions do not address the reason why procurement of these goods and services has been too slow. If the buying process isn’t working across the board and agencies aren’t getting what they need in a timely manner, the underlying causes should be addressed directly with the long-term in mind. Short-term fixes that create more acquisition systems and special authorities only mask the real issue.

Want to know more about PSC’s take on the House and Senate versions of the 2011 National Defense Authorization Act?

Read all about it at GovExec.
And on Federal News Radio.
And twice in Washington Technology: one here, and one here.
And on the Federal Times Blog, FedLine.
And, in a little publication known as the Wall Street Journal.