Civilian Agencies: Showing You the $$$

Fiscal year 2020 was actually good for something — Civilian agency spending. Civilian agencies spent a record $228 billion in fiscal 2020, up 17 percent from fiscal 2019. The increase can be directly attributed to the Coronavirus pandemic. (Government Executive, October 8, 2020)

According to this report, published by Bloomberg Government, Health and Human Services (HHS), Veterans Affairs, and the Department of Energy drove the increased spending. Small businesses saw a 26 percent increase, or $59.4 million spent. The Department of Defense numbers, due to security purposes, see a 90 day lag in reporting; we likely won’t see those totals before the end of the calendar year.

Here’s a quick look at the spending breakdown:

  • Health and Human Services accounted for $41.2 billion or 44  percent of the overall $33.5 billion. The bulk of the spending came from vaccines, research, ventilators, and efforts related to the pandemic.
  • Veterans Affairs came in at $33.1 billion in fiscal 2020. The spending is likely attributed to community care.
  • The Department of Energy spent upwards of $35 billion on two nuclear research labs. Of note is the fact that each lab houses “supercomputers” performing coronavirus research.
  • Small Business Administration spending went from $177 million in fiscal 2019 to over $1.5 billion in fiscal 2020. Part of this is due to an RER Solutions Inc. contract being approved for a $500 million increase without competitive bidding, as disaster recovery loan applications inundated the SBA. (ibid)

Other transaction authority contracts, which are allowed a great deal of flexibility outside of the traditional procurement limitations, are increasing year after year as well. We expect to see this continue well into the future. (ibid)

Questions about the “other transaction authority contracts” and how to take advantage of their flexibility? Give us a call.

Paying for COVID Absences

DoD has been steadily compensating contractors for work they are not able to complete due to the pandemic. According to Ellen Lord, chief acquisition chief for the Pentagon, payments are about to speed up. (Federal News Network, August 14, 2020)

Lord explained, “We have developed a streamlined path forward for low dollar value reimbursements under $2 million, and a path to settle globally at a company or division level that will eliminate the need to have proposals and negotiations on the contract-by-contract basis.”  DoD plans to make payments based on a tiered structure, depending on the size of the payments.

Questions about getting paid during the pandemic, or if you will get paid? Give us a call.

Speedy Payments? Yes Please.

The Federal Acquisition Regulation (FAR) is changing to allow government contracting small businesses to get paid within 15 days of invoicing. Furthermore, the Department of Health and Human Services (HHS), the Department of the Treasury (Treasury), the Department of Homeland Security (DHS) and the General Services Administration (GSA) are working together to issue a memorandum that authorizes the expedited payments in advance of the updated changes to the FAR. (JDSUPRA, May 14, 2020)

Contractors should contact their government Contracting Officer to facilitate those payments. For example, a DHS Small Business Innovation Research (SBIR) recipient currently paid within 30 days of invoicing may be eligible for a contract modification to accelerate payments upon the exercise of any options under that contract. (ibid)

The National Defense Authorization Act for Fiscal Year 2020, Section 873, requires agencies to establish an accelerated payment date for certain contracts with a goal of payment 15 days after an invoice is received, if a specific payment date is not established by the contract. The change will be implemented via an applicable FAR revision.

Other formal additions to the FAR include 52.212-5 (Contract Terms and Conditions Required to Implement Statutes or Executive Orders – Commercial items), FAR 52.213-4 (Terms and Conditions – Simplified Acquisitions (Other Thank Commercial Items)), and FAR 52.244-6 (Subcontracts and Commercial Items.) (ibid)

This is great news for small businesses looking to decrease hardships produced by the COVID-19 pandemic.

Questions about the FAR changes and the expedited payment memorandum? Give us a call.

Industry Looking to GSA for Guidance

Agencies are pressuring GSA to provide guidance for meeting deadlines to modernize telecommunications. The  pandemic has delayed many agency transitions, thus making those deadlines nearly impossible to meet. (FEDSCOOP, May 12, 2020)

COVID-19 slowed task order awards under the Enterprise Infrastructure Solutions (EIS) contract, the government’s $50 billion telecom and network modernization channel. In some cases where task orders have been awarded, agencies can’t provide contractors clear instructions. Many believe the task order award delays impede the move from Networx, Washington Interagency Telecommunications System 3, and local service area contracts.

Legacy contracts are set to expire in May 2023. The GAO expects 19 of the agencies who spend the most on EIS to be transitioned over by the legacy expiration date; however many will not meet the GSA’s more aggressive 30 September 2022 deadline. (ibid)

Allen Hill, executive director of telecom services in the Office of IT Category at GSA believes agencies will make GSA aware of the effects of the pandemic, and GSA will in turn work with agencies on a case by case basis. (ibid)

The Department of Defense has their own strategy. They are beginning to rely on the lowest price technically acceptable (LPTA) source selection for EIS. DoD plans to report the methodology used to award contracts and task orders in June, once the Federal Procurement Data System modification is complete. Meanwhile, the Defense Information Systems Agency executed six EIS awards last month. Most EIS solicitations are “best value” yet agencies need to balance the overall cost of their transition with the time for implementation. (ibid)

Unfortunately, when agencies speed up transition, companies have less time to address task order requirements properly. This puts the risk on industry to provide the best value while accurately responding to agency requirements. Many task orders were written prior to the pandemic, therefore contractors are forced to address network issues while teleworking. The time it takes to address issues is naturally increased. (ibid)

“Agencies are encouraged to examine any gaps in their network infrastructures and ensure they make appropriate adjustments to their EIS task orders to provide needed capabilities. Modern IT demands modern infrastructure,” Hill stated. (ibid)

Have questions concerning a delayed task order or need one? Give us a call.

GSA Extends Contract Data Reports Transition

GSA is extending the transition period for Contract Data reports in beta.SAM.gov. We don’t have a final transition date yet, although it’s expected later this year. This applies only to the reports function of FPDS.gov; everything else will remain as is. (GSA Interact, May 12, 2020)

GSA wants users to familiarize themselves with beta.SAM.gov while reports are available on both platforms. Furthermore, they want users to provide input on running reports. GSA is providing videos, FAQs, and reference guides to assist with the transition. (ibid)

GSA sees the following benefits to beta.SAM.gov:

  • Increased maximum number of rows returned from 30,000 to 150,000 rows in each report
  • Increased maximum number of years of reportable data from five years to 12 years
  • Additional data fields available for creating ad hoc reports
  • Tools for sharing ad hoc report structure with others, such as attributes and filters
  • Report Builder, a “wizard” that helps create new ad hoc reports
  • Intuitive tools to build, save, and share reports (ibid)

GSA used earlier feedback to determine the need for additional time before making the final transition to beta.SAM.gov. They will continue to take all feedback into consideration while transitioning. Any user can still use the feedback button to participate.

Trying to figure out if your reports will change and if you can retrieve them on the new platform? Give us a call.