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Small Business

Changes A-Comin’ With the Biden Administration

Contractors can expect to see a new executive order requiring federal contractors to pay a $15 minimum wage and provide emergency paid leave. Additionally, this week President Biden signed an executive order pressing federal agencies to buy more American-made products and services. The buy-American order “will ensure that the federal government is investing taxpayer dollars in American businesses—both small and large.” (The White House Statements and Releases, January 25, 2021)

Employers of the largest federal contracting workforce are cheering the minimum wage increase. Jen Psaki, White House Press Secretary, said Biden issued the minimum wage mandate because “he felt it was something that was not just right to do, but something that was necessary to do.”  (Government Executive, January 22, 2021)

The new buy-American order enhances the Buy American statute passed in 1933 and the Buy America statute passed in 1982. It calls for the following:

  • Closing current loopholes on how domestic content is measured and increasing domestic content requirements.
  • Appoint a new senior leader in the Executive Office of the President in charge of the government’s Made-in-America policy approach.
  • Increase oversight of potential waivers to domestic preference laws. (a GSA-built website will publish waivers publicly)
  • Connect new businesses to contracting opportunities by requiring active use of supplier scouting by agencies.
  • Reiteration of the President’s strong support for the Jones Act.
  • Direct a cross-agency review of all domestic preferences.
  • Support America’s Workers through Federal Purchasing. (The White House Statements and Releases January 25, 2021)

The buy-American order allows American manufacturers and workers to see how federal dollars are spent and where the money is funneled and used, providing transparency promised by the new administration. The higher minimum wage will empower the workforce and provide much needed economic relief. (Government Executive, January 22, 2021)

Questions concerning the new minimum wage or the buy-American order and their effect on future procurements? Give us a call.

Polaris Replacing Alliant 2

This past July, GSA put to rest the Aliant 2 Small Business contract. The just last week, GSA released a draft RFP named Polaris, a Governmentwide Acquisition Contract (GWAC) to provide customized Information Technology (IT) services-based solutions.  The draft RFP breaks out small business contractors into specific “pools,” for Small Business, HUBZone Small Businesses, and Women Owned Small Businesses. GSA reserves the right to add additional pools when deemed necessary. (beta.SAM.gov, December 31, 2020)

According to the draft RFP, Polaris will provide agencies with customized IT services and IT services-based solutions, which can be tailored to meet particular mission needs and may include any combination of IT services and new and emerging technologies. (ibid)

GSA encourages contractors to provide innovative solutions to task order requirements prioritizing emerging technologies.  Examples of emerging technologies included within the draft RFP are:

  • Advanced and Quantum Computing — cryptography/encryption, secure communications, design of high-performance computers, computer clusters, and networks, Quantum Machine Learning
  • Artificial intelligence (AI) — Computer Vision, Deep Learning, Machine Learning, Natural Language Processing (NLP),  Spatial Computing, Speech Recognition
  • Automation technology — Robotic Process Automation (RPA), Automated Messaging Services, Data Cleaning Scripts, Interactive Voice Response (IVR), Smart Notification
  • Distributed ledger technology — Blockchain Implementation Solutions, DLT Network Design Services, Smart Contract Programming Services
  • Edge computing — 5G Implementation Services, Edge Analytics, Edge Application Services, Edge Computing Architecture Design Services, Internet of Things (IoT) Services
  • Immersive technology  — Virtual Reality, Augmented Reality

Examples of Performance areas within the draft RFP are as follows:

  • Cloud Services
  • Cybersecurity
  • Data Management
  • Information and Communications Technologies
  • IT Operations and Maintenance
  • Software Development
  • System Design

Contractors may “provide ancillary support as necessary to offer an IT services-based solution,” but, as with the GSA Schedule, only “when it is integral to and necessary for the IT services-based effort.” (ibid)

Contractors should take note of the security considerations as purchasers may be from the Department of Defense as well as civilian agencies. In particular, the Defense Department’s Cybersecurity Maturity Model Certification is a developing regulation and requirement included in the draft RFP. Additional Cybersecurity and Supply Chain Risk Management (SCRM) requirements are expected to also be included. (ibid)

All draft RFP feedback is due by 4:00 PM Central Time, January 29, 2021.

Have questions concerning the draft RFP, who can respond, and how? Give us a call.

Bots Can be Your Friend

It’s been just about a year since Dr. Michael Wooten, the Policy Administrator for the Office of Federal Procurement, disclosed his plan to remove friction from the acquisition process. His intention is to rely on robotics process automation (RPA) as well as a few additional concepts to lessen the burden on contracting officers. (Federal News Network, October 12, 2020)

One way Wooten plans to do this is through the reduction of procurement administration lead time. Wooten recently spoke at the ACT-IAC Acquisition Excellence conference and said, “We look to accelerate the use of facilitated requirements development workshops, known as SAWS. We should enhance the requirements development process with the same technologies used to finish my sentences when I send texts or emails. This is no pie-in-the-sky vision. The technology exists today. In fact, the Department of Interior is piloting this approach. Under one of its contracts, a contractor supporting the Department of Interior applies natural language processing and machine learning tools to coach Interior’s acquisition community through the acquisition process. These artificial intelligence tools collect data to identify training needs. These data support management decisions to support better performance through training or process improvements.” (ibid)

When purchasing anything from help desk services to a fighter jet, AI and natural language processing tools pull clauses and requirements, which are applicable, by scanning previous contracts. The next step hopefully finds the manager performing minor tweaks to the language because most of the language has been used previously. GSA has been using these facilitated requirement development workshops (SAWS) since 2015 for BPAs and DoD has used SAWS since 2012 for service acquisitions over $1 billion. (ibid)

The acquisition community is taking a hard look at automation. RPA has been applied to the procurement process by the IRS, the Army, and GSA. Wooten feels RPA will improve compliance and ultimately become routine. He said, “these process automation tools can take on the ‘flow-chartable’ tasks. These tools will execute program decisions. In this fashion, automation can enable a compliance system that enables greater speed and accuracy. As process automation tools take on program decisions, they free people to make non-program decisions. They free people to exercise critical thinking and professional judgment. They empower people to create solutions.”

IRS has two programs under the Pilot IRS initiative:

  • Contract Clause Review:  a tool allowing a procurement document to be uploaded while answering questions about the document. Within seconds a compliance report is generated. Missing characters, text, and incompleteness is checked while at the same time syncing to the FAR, the Treasury Acquisition regulations, and the IRS acquisition policies. The tool is expected to have a large Return on Investment.
  • Contractor responsibility determination will automatically, prior to contract award, verify a company is eligible to do business with the government. Instead of a manual process, a bot will search databases, sending a report back to the employee within five minutes.

The Army launched another form of automation, a bot to retrieve information from SAM.gov and FAPIS.gov and summarize the information in a formatted template. Air Force and Navy should be utilizing the bot in fiscal 2021. Liz Chirico, the acquisition innovation lead in the Office of the Deputy Assistant Secretary of the Army for procurement said, “our team is looking into a couple of other interesting intelligent automation ideas. We are looking at automating some of the manual lookup processes for pricing so going to some of the public-facing pricing sites like GSA’s CALC and the Bureau of Labor and Statistics are two examples. We are also looking into streamlining the acquisition requirements process. That process often takes a lot of time and requires duplicative information, so if there is any way for us to streamline that and have all of the requirements stated upfront and have those templates and forms prepopulated.” Bots will probably also be used to ensure compliance with Section 889, prohibition of Chinese made telecommunications products. (ibid)

The IRS and the Army are using automation tools to move quickly through the procurement process and it’s likely the rest of the federal agencies are not far behind.

Questions concerning an upcoming bid and your company approvals through RPA or other automation processes? Give us a call.

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.

Alliant 2 is Out/Polaris is In

After a year of protests and federal court hearings, the Government Accountability Office has canceled its $15 billion Alliant 2 Small Business contract. GAO is calling the replacement contract “Polaris.” A GSA spokesperson said, “Polaris will not only guide small businesses through the federal market, it will also help GSA customer agencies through the acquisition of IT service-based solutions, and give GSA a chance to improve our offerings and set the agency on a solid course for the future.” (GSAblogs.gsa.gov, October 1, 2020)

Administration sees the industrial base broadening by:

  • Pricing Strategy: GSA plans to increase its pool of qualified small businesses that serve federal agencies. GSA will employ Section 876 of the Fiscal Year 2019 National Defense Authorization Act, allowing contract awards to qualifying contractors without consideration of prices for hourly services. Focus on price competition ultimately takes place at the task order level.
  • On-ramps: Allows for an expanded industrial base as technology changes and for vendors to be considered on the GWAC following an initial award period.
  • Opportunity Expansion: An increased opportunity for HUBZone and woman-owned businesses.
  • Embracing Technology to Maximize Efficiency: Polaris will provide agencies with access to emerging technology providers, especially those offering artificial intelligence, automated technologies, blockchain, 5G implementation, cybersecurity, and cloud. (ibid)

The vendor evaluation strategy will be similar to that used in the Veterans Technology Services 2 and Alliant 2 contracts. Both were guided by industry comments. FAS may utilize an online proposal submission tool to speed up Polaris contract awards, as well as a modified evaluation strategy. (Federal Computer Week, October 5, 2020)

Questions about the Polaris evaluation strategy and how your company might do business on the platform? Give us a call.