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Contract management

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.

CMMC not for COTS

A recent modification to DoD’s website spells out a small but very specific change about the Cybersecurity Maturity Model Certification (CMMC): it’s not applicable to DoD suppliers that only provide commercial-off-the-shelf products. (FedScoop, May 5, 2020)

Originally, DoD and CMMC administrators explained that all contractors and subcontractors must be certified under  CMMC by a third-party assessor. However, a few weeks ago, the Office of the Under Secretary of Defense for Acquisition and Sustainment changed the official website. The revised FAQ section states: “Companies that solely produce Commercial-Off-The-Shelf (COTS) products do not require a CMMC certification.” (ibid)

CMMC is in place to certify contractors have the cybersecurity practices in place to work with controlled unclassified information, the actual products themselves. (ibid)

Wondering if CMMC applies to the products and or services you provide? Give us a call.

GSA, Pandemic Style

GSA is moving quickly to enact several initiatives while responding to the COVID-19 pandemic. Because the current state of emergency necessitates the Federal Acquisition Service to purchase medical supplies and other equipment at a fast clip, Contracting Officers have no choice but to react with a fair amount of speed and flexibility. (Federal News Network, May 1, 2020)

This includes:

  • changing policies for prompt payment and onboarding/offboarding of contractors
  • construction of the new e-commerce marketplace platform, which was paused during the first few weeks of the pandemic, is now moving forward, albeit at a much slower pace
  • monitoring other initiatives possibly impacting by the pandemic, such as Enterprise Infrastructure Solutions (EIS)
  • continuing corrective actions on Alliant 2 revised proposals
  • expanding the small business innovation research (SBIR) program, part three

Some government markets, like travel, have declined; however cleaning products and enhanced screening services have increased exponentially. (ibid)

Any questions about getting your product or service in front of government buyers? Give us a call.

PPP Payback?

Last week, the Small Business Administration (SBA) launched a second round of the Paycheck Protection Program. PPP allows banks to “forgive” government-guaranteed loans to small businesses struggling due to the pandemic. Unfortunately, government guidance on necessary documentation/calculations to ensure forgiveness is sorely lacking.

Many small business owners expect their loans to ultimately be forgiven “but it is not that simple,” according to Paul Merski, of the Independent Community Bankers of America. He advises that everyone keep “their information and paperwork in order.”(Reuters, May 1, 2020)

The PPP regulation states the following:

  • Borrowers must spend 75 percent of the loan on payroll costs like salaries, tips, leave, severance pay, and health insurance, within the first two months.
  • Borrowers must spend the remaining 25 percent on other “running” costs, such as utilities and rent.

All money spent on non-qualifying expenses must be repaid within two years at a one percent annual interest rate. (ibid)

Confusion and uncertainty surround the re-payment or forgiveness process itself. Who certifies that borrowers actually meet the 75 percent threshold and using borrowed funds as required? Will SBA will issue standard guidelines for forgiveness? Small business owners need to know which documents to maintain and records to keep. EZGSA, like all of you, await some clarity on next steps.

Are you unclear on your Small Business loan payback? We will let you know as soon as we do. In the mean time, feel free to give us a call.

CARES Funds Available For Contractors

The Office of Management and Budget (OMB) recently published a supplement to Section 3610 of the CARES Act that allows contractors sick or paid time-off during the national emergency if contractors are not able to access their worksites or telework. (Government Executive, April 17, 2020)

At this time, maximizing telework is advised; however, many contractor jobs involve sensitive and/or classified work, making telework not feasible. Trade associations realized this pretty quickly and asked for additional clarification of the Act. For these specific contractors, agencies are allowed to “modify the terms and conditions of a contract, or other agreement to reimburse at the minimum applicable contract billing rates up to an average of 40 hours per week for any paid leave (including sick leave) a contractor provides to keep its employees or subcontractors in a ready state.”

In addition to the paid leave/sick leave clarification, the updated guidance allows agencies to reimburse contractors from the 27 March (when the CARE Act was signed) through 30 September 2020. The original bill did not include a start date. (ibid)

OMB, via the Office of Federal Procurement Policy, developed a guide to assist agencies when working with contractors to ensure the correct documentation is submitted for proper reimbursement. (ibid)

Don’t know where to start the process of getting paid during this national emergency? Give us a call.