The House passes the IMPROVE Acquisition Act

The House passed the IMPROVE Acquisition Act yesterday — to borrow a phrase — to improve DoD acquisition. Or at least that’s how the Hill sees it. And, for the most part, PSC agrees that the bill will make some needed improvements to the Defense Department’s acquisition processes. However, PSC has some serious reservations about amendments offered on the floor that take the bill off its intended track.

An amendment submitted by Rep. Alan Grayson, D-Fla., could require contracting officers to make cost at least half of the evaluation criteria on a contract unless a contracting officer justifies why cost shouldn’t be the primary consideration. How do you put cost above outcome on a research and development contract for new body armor or a new mine-resistant vehicle? Given the tremendous workloads staff-strapped contracting shops face, that’s what Grayson is doing since it is doubtful contracting officers have the time to provide written justifications on why best value should trump cost in such cases.

Rep. Phil Hare, D-Ill., offered another troubling amendment. Hare’s amendment would make it the “sense of Congress” that the government shouldn’t do business with any company that has violated a labor law. Excluding from further contracts any contractor that has a labor law violation against it doesn’t make “sense” to PSC. An acknowledged violation could be a signal that the company took responsibility for its action, proving it trustworthy. Further, a violation may be technical and that does not affect a contractors’ ability to fulfill its responsibilities to the government.

Gordon hears PSC, ABA concerns on multi-sector workforce policy memo

Office of Federal Procurement Policy Administrator Daniel Gordon took part in a question and answer session the Professional Services Council and the American Bar Association hosted on April 26. Gordon discussed his March 31 draft policy letter, “Work Reserved for Performance by Federal Government Employees.” Among the top concerns raised by attendees about the letter: a failure to offer clear guidance on conducting a cost comparison and a failure to address what to do when a job could be considered “government only” but the need is immediate or the job isn’t a long-term requirement. Gordon said he is in “listening mode” and welcomed written comments on these and other concerns raised during the town-hall style meeting. PSC is preparing comments to send to Gordon by the June 1 deadline.

Hiring rule would limit contractors

The Labor Department did a curious thing on March 19. It proposed a rule that appears to run afoul of basic labor laws and practices. The “Cliff’s Notes” version: Labor, at the order of the White House, proposes to force contractors that win government work from another firm to give the outgoing contractor’s wage-grad...e employees the right of first refusal for the jobs they’re vacating. However, the proposal fails to provide a meaningful way for the incoming contractor to assess the qualifications of those employees. Sound absurd? PSC President and CEO Stan Soloway thought so too. You can read his in-depth analysis of the rule in this Government Executive op-ed.

PSC Raises Concerns with DoD Proposed Rule on "Safeguarding Unclassified Information"

Alan Chvotkin, PSC's executive vice president and counsel, discussed another Defense Department proposal affecting contractors at a public hearing yesterday. The initiative would govern how contractors secure controlled unclassified Defense information on the contractors’ networks. You can read his presentation and PSC’s views on this rule here.

ITT Systems Employees in Iraq Team Up With U.S. Military to Provide Local Children with School Supplies

For safety reasons, ITT Corporation employees working on the Global Maintenance and Supply Services (GMASS) program at Joint Base Balad, Iraq can’t freely venture outside of the military base where they maintain and upgrade vehicles, but that doesn’t keep them from equipping local Iraqi children to succeed in school.

ITT Systems Division staff at Balad organized a fundraising competition, with a pizza party going to the winning team, as part of an effort to purchase backpacks and school supplies. In just two weeks, they raised $3,700 to purchase colorful school backpacks and partnered with the U.S. Army’s 1-402nd Field Support Brigade and 37th Engineer Battalion to provide paper, pencils, paints, a toy and some candy to fill the backpacks.

Once the materials were purchased, ITT employees, working during their off-duty hours, stuffed the packs with the supplies and turned them over to U.S. Army personnel at Joint Base Balad for distribution to children at a school about 10km from the base. Since the ITT Balad team ended up exceeding their original fundraising goal, they are already working to prepare a second batch of supplies for schoolchildren in another local Iraqi town.

“Hopefully our efforts will help the military build relations in the surrounding area, encourage the local children, and make the area safer for soldiers, civilians and Iraqis in the long run,” said ITT Systems Program Manager Jeff Meo.

Bringing Job Growth to Rural Virginia: CGI’s Southwest Virginia Technology Center of Excellence

When he was campaigning for president, candidate Barack Obama made a stop in Lebanon, Virginia to talk about creating more high technology jobs. He singled out CGI, a global information technology and business process services provider, for bringing over 300 high tech jobs to a rural area of the state.

Encouraged in part by Virginia’s business-friendly orientation and the state’s aggressive effort to build out high-speed broadband technology, CGI decided to locate one of its 13 Centers of Excellence in Lebanon.

The Center expands CGI’s capacity to provide its government and private sector clients with a broad range of IT services at competitive rates. Locating a center in a rural area provided the additional benefit of spurring economic development in a region anxious to attract employers.

CGI, which has operations in 16 countries, has its U.S. headquarters in Fairfax, Va. The company is a leader in IT and business processes that reduce costs, improve efficiency and help clients solve difficult business challenges. In deciding to locate in Russell County, Va, the company recognized the availability of a well educated, skilled workforce and its proximity to leading universities and colleges in the region. “With the Southwest Virginia Center, we were able to address a long-standing economic and social issue across the US—the exodus of jobs as well as young people from smaller, rural communities in favor of larger, metropolitan cities,” says Donna Morea, President, CGI United States.

Recycling, Reusing and Going Green: BAE Systems Helps Government Save Millions

Recycling, Reusing and Going Green: BAE Systems Helps Government Save Millions

With $235,000 in seed money, one man’s plan for recycling and reusing outdated equipment at a munitions plant has turned into a $2.5 million return on investment for the Army.

Built during World War II, the Holston Army Ammunition plant in Kingsport, Tenn., manufactures explosives for the military. Within the plant are outdated pieces of equipment and machinery and hazardous materials that required safe disposal.

Eric Fugate, the plant manager and an employee of BAE Systems, which operates the plant for the Army, had an idea. Knowing the value of the stainless steel, copper and silver that comprise the various pieces of old unused equipment, Fugate developed a plan to use the value of the metals to carry out a self-funded demolition project. The project would ultimately improve business performance, dispose of redundant equipment and remove hazardous materials—all at no net cost to the government.

When Fugate presented his plan to the senior government civilian, Commander’s Representative Bob Ragan, Ragan immediately saw the potential and jumped at the opportunity to get the project briefed to his higher headquarters. “This idea was pure thinking outside-the-box, especially in light of the current funding stream that plants like Holston live with on a daily basis. Truly BAE is looking out for their customer,” said Ragan.

“I just kept the Army’s long-term needs in mind. Sometimes we can help show them a better way to accomplish their mission. Doing what our customers need, and saving money while doing it, is what we should all try to do. After all, I’m a taxpayer too,” Fugate said.

Fugate presented his plan to the Army, which provided $235,000 in initial seed money. This funding was required in part to remove the asbestos from a portion of the plant. The valuable metals contained in the equipment were then removed and sold to generate the money to pay for the demolition work.

Fugate’s out-of-the-box idea is coming to fruition. The disposal of the redundant equipment is on schedule and will be completed over the next 18 to 24 months and will generate more than $2.5 million from the sale of the valuable metals.