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Tag: Biden Administration

Getting the government to green

The increasing number of Natural disasters are actually not at all “Natural.” They are costing the global economy more than $390 billion each year. As a response, consumers and corporations are working on ways to lower their carbon footprint. Simultaneously, the government is putting into place, aggressive timelines to curb emissions. The Biden administration announced a 2030 target, to reduce greenhouse gas emissions by 52 percent. (Washington Technology September 13, 2021)

Because the federal government has such extensive purchasing power, they have the ability to drive holistic sustainable innovations in the private sector. The government can create sustainability standards and include those standards in requests for proposals, thus driving the private sector into more sustainable practices. (ibid)

According to Bloomberg Government, “$682 billion was spent on contracts in fiscal 2020 a record expenditure for the government.” This gives the federal government the ability to incentivize contractors, who want to work with the government. (ibid)

Will sustainability standards become the norm for requests for proposals? It is already in cybersecurity, the NIST 800 standards have set the bar high for device manufacturers. (ibid)

A recent executive order to speed up cybersecurity advancements pushes industry to progress and innovate even faster. The Environmental Protection Agency (EPA) could use this same type of model to impel sustainability. (ibid)

Once the government makes sustainability a priority, the private world will follow suit. We are already seeing a new mentality and with that, progress.

Questions concerning environmental standards and how to exceed them in your next response to an RFP? Give us a call.

 

 

The Price Reduction Clause needs to go

On July 9th, the Biden administration issued the Executive Order on Promoting Competition in the American Economy. Much of the focus of the Order is on fair and open competition. One way to accomplish this is the elimination of the Price Reduction Clause (PRC). The elimination of the PRC will streamline the Federal Supply Schedule (FSS) program by removing barriers to entry into the federal marketplace. (Federal News Network July 19, 2021)

Robin Carnahan, General Services Administration Administrator, during her confirmation hearing, said, “I’ve talked to businesses that have tried to get on GSA Schedules… [T]hey’ve told me about how difficult that process is, and I’m interested in learning more about how we can streamline that.” The Price Reduction Clause elimination is a start. (ibid)

One could argue the following points to eliminate PRC:

  • The advancement of technology and the use of new purchasing practices have all but rendered the PRC obsolete.
  • The PRC can keep agencies from purchasing ground-breaking technologies from new vendors.
  • The PRC puts an undue compliance burden on small, medium, and large FSS contractors, costing them millions of dollars each year.
  • Price and value are driven by competition, at the task order level and in real-time. The PRC pre-determines contract-level pricing, often negotiating against presumed requirements from the past.
  • Compliance costs of the PRC can be detrimental to small businesses attempting to address the PRC’s complex compliance requirements.
  • The PRC is the only governmentwide contract term that can restrict contractors working with the government from competing in the commercial marketplace. This hurts jobs and economic growth. (ibid)

The elimination of the PRC will increase competition. Small businesses will more easily compete as price and value will drive task order-level competition. Without PRC’s complex compliance requirements,  small businesses will finally be able to afford to compete.

Looking to provide services to the government but the PRC has been a stumbling block? Give us a call.

 

Small business and startups are front and center

Boosting small businesses and software for DoD are priorities for the Biden administration and their nomination for the Defense Department’s technology efforts.  Heidi Shyu, nominated for undersecretary of defense,  recently introduced her priorities to modernize the military during her confirmation hearing. She stated, “In order to rapidly transition the latest software, we need to have an open architecture that isolates the software from the hardware then allows rapid user testing.” (Defense Systems May 26, 2021)

Shyu told the senate that DOD should be investing so that development and procurement are 70% of their costs for a new weapons system. Shyu proposed buying more emerging tech such as artificial intelligence, synthetic biology and hypersonics rather than investing in older systems. Shyu said, “today, sustainment makes up 70% of total weapon system cost, with development and procurement making up 30%.” (ibid)

During Shyu’s hearing, she mentioned small businesses, especially startups working on new technologies, repeatedly. Shyu feels they are necessary for the Defense Department’s success. Shyu did not lose sight of the inability of the acquisition system to shift prototypes into programs. Shyu plans to institute a clear transition path. (ibid)

Shyu said, “part of the reason there is a valley of death for technology is that a lot of the technology programs are being developed by small companies, and unless you had the foresight two years ago to understand that the technology is going to be mature within two years time, by the time you get the money to buy that technology it’s two years old now.” (ibid)

Shyu said, “I saw a six-person company that’s developed any type of fuel as input and the output is a DC-plug. Those are the types of creative, innovative companies we need to nurture. And they are struggling to figure out who to talk to in the DOD.” (ibid)

Are you an innovator or a small business looking to work with the Department of Defense? Give us a call.

 

 

 

 

15% Goal for Small Disadvantaged Businesses

When it comes to Diversity, Equity, and Inclusion (DE&I) the Biden administration is making good on its promises. The administration issued an executive order rescinding the Trump administration policies that weakened the diversity, equity, and inclusion training programs at agencies and federal contractors. In addition, the Office of Management and Budget issued a request for information (RFI) searching for DE&I solutions to enhance a number of government activities. (Government Executive May 19, 2021)

This particular RFI appears to be a crowd-sourcing application for policy solutions. It shows that the current administration is very serious about DE&I and their willingness to accept changes and an openness to new and different ways of viewing the inner workings of the government. (ibid)

It appears the administration is looking for better ways to leverage the government’s spending capability. To make sure all receive their fair share and to help close the income, wage, and opportunity gaps. The administration has initiated a 15% goal for federal contract dollars to go to small disadvantaged businesses. Although this looks like a great opportunity it is actually quite hard to measure how many dollars actually funnel through prime contractors to their subs. Figuring out how to measure the dollar flow would be a good start, then putting the 15% goal into effect. Progress is measurable at that point. (ibid)

So where are we today? Can the administration succeed with its DE&I goals? The question becomes, “how do we know?” Steps are clearly headed in the right direction, however, a commitment and a baseline are needed to end up where we want to be.

Are you a small disadvantaged business looking into GSA? Give us a call.