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Small Business

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.

Just the Facts FAS, Please

Earlier this week, a GSA watchdog discovered erroneous reporting of small business contracts by the Federal Acquisition Service (FAS). (Government Executive September 17, 2020)

The General Service Administration (GSA) inspector general (IG) recently provided a report that focused on the data entered into the Federal Procurement Data System – Next Generation, which is managed by GSA. The Small Business Administration (SBA) uses the system data provided to determine if the federal government is achieving its annual goal of awarding 23 percent of contracts to small businesses. An IG review of FAS procurements from fiscal 2016 and 2017 and shows that small business procurements have been grossly overstated.

“We found that FAS’s reporting of small business procurements contained significant inaccuracies. We identified $89 million in procurements erroneously recorded as small business in the Federal Procurement Data System – Next Generation. Additionally, FAS’ small business procurement reporting does not identify the extent of the work performed by large businesses. We found approximately $120 million of small business procurements in which large businesses performed a portion of the work.” (ibid)

After interviewing small business contractors and GSA officials as well as analyzing agency contracting data, the IG determined many of the issues to be out of GSA’s control. For instance, the IG found that classification codes  often “pre-populate” for task orders; due to the nature of the software, officers cannot override the system to update the task order codes. In addition, no mandate exists for FAS or small businesses to report how much of the work completed on a contract is subcontracted to large businesses. This leads to inaccuracies when assessing FAS’s small business procurements. Many believe the inaccuracies will never be fully fixed due to the competing policy issues and marketplace anomalies. (ibid)

The IG recommended the following:

  • Fix the limitations of the contracting system to enable accurate reporting
  • SBA and the commissioner discuss how subcontracting and reseller agreements are reported

How does this affect your contract or an upcoming proposal? Give us a call.

SubK Silver Lining

The U.S. Small Business Administration (SBA) is extending the time for contractors to file Individual Subcontracting Reports (ISR) by 30 days and Summary Subcontracting Reports (SSR) by 60 days. (Small Business Administration Extension Notice, August 27, 2020)

SBA reasoned that, due to the pandemic and social distancing requirements in a number of states including the District of Columbia, many records remain unattainable. Without proper records, contractors are not able to meet reporting requirements.  New deadlines for ISRs is 30 November 2020 and for SSRs is 30 December 2020. SBA is also extending the deadline to 30 November for vendors who have recently completed contracts or will complete contracts before 30 September. No financial or liability consequences will be imposed on contractors for taking advantage of the updated deadlines.

The extension notice is being sent to those on the SBPAC list as well as all government and business personnel with a valid email in eSRS. (ibid)

Not sure if the extension notice applies to you? Give us a call.

Can Alliant 2 Be “Newer, Better” ?

GSA has finally put us all out of our Alliant 2 Small Business misery. Last week they canceled the acquisition contract. The original award was wrought with confusion, protests, and court disputes, so cancellation isn’t that surprising. (Nextgov, July 2, 2020)

However, GSA promises that the small business IT instrument will live on in a newer, better solicitation. Keep your eyes peeled for the larger and newly structured solicitation. No word yet on the release date of the new solicitation. (ibid)

Laura Stanton, acting GSA Assistant Commissioner for the Office of Information Technology when announcing the cancelation said, “The needs of our customer agencies, small business partners, and industry partners are rapidly evolving, GSA is committed to finding ways for our GWACs to reflect the current IT marketplace so that we can maximize the opportunities for small and women-owned, HUBzone, service-disables veteran-owned, and 8(a) small businesses to contract with the government for cybersecurity, emerging technology, and IT supply chain risk management needs.”

Stanton also said, “we are working to expand the number of master contract awards to highly qualified small businesses on our GWACs, while focusing on technology requirements that support our customer agencies for future mission success.” (ibid)

Questions about the cancellation and or the upcoming solicitation? Give us a call.