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Tag: contractors

What’s Next for Federal Acquisition? David Berteau’s Parting Insights for Government Contractors

As David Berteau steps down from his role as CEO of the Professional Services Council (PSC), federal contractors would be wise to pay close attention to the lessons he leaves behind. With over four decades in federal acquisition, from the Pentagon to PSC, Berteau has seen the full arc of government contracting’s evolution and knows exactly where the industry needs to go next. (Federal News Network April 29, 2025)

From Inputs to Outcomes: A Call for Smarter Procurement

“The government used to buy results. Now it buys labor hours and storage capacity,” Berteau said in a farewell conversation with Federal News Network’s Tom Temin. His message to contractors is clear: success in the coming era will depend on shifting the conversation with agencies back to mission outcomes—not just technical specs or cost ceilings. (ibid)

For firms competing in a crowded, compliance-heavy space, being outcome-focused is more than a strategy—it’s a differentiator. “We need to help the government define what success looks like, and tailor solutions to achieve that,” he emphasized. (ibid)

Tech Innovation Has Left the Building—and That’s an Opportunity

Gone are the days when the Pentagon seeded cutting-edge technology. Today, Berteau said, commercial markets drive innovation, and contractors must be fluent in adapting those tools for government use, securely, affordably, and at scale. (ibid)

“Most new technology now comes from the global commercial space. The government’s role is still critical, especially for defense but the dynamic has flipped,” he noted. (ibid)

Contractors that understand how to integrate commercial tech into mission-specific architectures, from cloud platforms to edge computing, are already outpacing those still anchored in legacy systems. (ibid)

The Competitive Edge: Culture and Mission Alignment

For government service providers, Berteau stressed that culture is the real competitive advantage. “You can’t sustain success in this market without a commitment to the mission,” he said. “The red tape is real. If your people aren’t motivated by public service, they won’t last.” (ibid)

This alignment is especially critical in today’s talent market, where attracting and retaining cleared, capable professionals remains a top challenge. Contractors who invest in a strong mission-driven culture, Berteau argued, will win, not just the next bid, but long-term relevance. (ibid)

Politics Matter, But Execution Wins

While policy shifts and partisan changes affect contracting conditions, Berteau reminded industry leaders to stay focused on execution. “The best companies in this space don’t get distracted by politics. They stay grounded in what matters: delivering value, staying compliant, and helping agencies succeed.” (ibid)

With a new wave of acquisition reform always around the corner, staying agile and compliant remains essential. “You can’t perform if you’re not compliant. And if you don’t perform, you won’t be around for long,” he said bluntly. (ibid)

Still in the Fight—Just Not Full Time

Though Berteau is stepping back from day-to-day operations, he made it clear he’s not exiting the federal contracting world entirely. “I’ve got a lot left to say and do. I’ll keep writing, advising, and staying connected.” (ibid)

For government contractors navigating increasing complexity, Berteau’s departure marks the end of an era, but not the loss of insight. His advice to the industry: stay competitive, stay compliant, and above all, stay aligned with the mission. (ibid)

Questions concerning the changing federal acquisition landscape? Give us a call.

Don’t be caught non-compliant

With each new year comes a new set of sub and prime contract goals each non-small business contractor and government agency must adhere to. Agencies achieve their goals by awarding prime contracts to small businesses. Non-small business contractors who compete for contracts worth $750,000 or more ($1.5 million for construction contracts) are required to submit a small business subcontracting plan. The plan must include how a contractor will attract small businesses and ensure that those businesses actually have an opportunity to subcontract (FAR 19.702). The plan must show separate dollar and percentage goals for small businesses, those services/supplies to be subcontracted, and an explanation of how small business contracts will be secured. (JDSupra April 23, 2020)

To keep contracts in check, the federal government may intermittently audit contractors. The audits verify small business subcontracting plan s are being fulfilled. The Small Business Administration (SBA) is the lead for the evaluations, the SBA may delegate this authority to other federal agencies. Department of Defense contracts are generally evaluated by the Defense Contract Management Agency (DCMA). (ibid)

Compliance reviews are random and any contractor with a subcontracting plan can be selected for review. The government considers the following factors during compliance reviews:

  • Number and size of the contractor’s government contracts
  • Date of last compliance review
  • Most recent compliance review results
  • Importance/sensitivity of the project
  • Reporting compliance in the electronic subcontracting reporting system (ibid)

The following may be reviewed during an audit:

  • Contract files/correspondence related to the contract
  • IT systems
  • Documentation on subcontracting methods and procedures (ibid)

Once the audit is complete, a contractor can expect to receive a report on non-compliant items found and a rating based on the review. A rating can range from unsatisfactory to outstanding. No further action is necessary if a contractor receives an outstanding rating. When the rating is below satisfactory, the contractor must create a corrective action plan (CAP) within 30 days, explaining the steps they will take to become compliant. (ibid)

It is a good idea for contractors to have the required documents on hand, should they receive notice of an upcoming audit. They may include the following:

  • Small business certification paperwork
  • Subcontracting program policies
  • Any prior compliance reviews
  • Organizational charts
  • Policy letters from the company CEO verifying subcontracting program
  • Historical subcontracting reports
  • Listing of any small business conferences or trade shows attended
  • Documentation of success stories – showing contracts awarded
  • A letter identifying small business liaison officer (ibid)

Companies that are well prepared for audits and have a subcontracting plan in place will undoubtedly move through a review smoothly and quickly.

Do you have all of your ducks in a row for a possible upcoming audit? Give us a call.

 

MAS Modification Guidance

GSA used industry feedback from over 90 current schedule holders and prospective contractors, who completed the MAS Modification Guidance RFI, to create the final MAS Modification Guidance. (GSA Interact, March 6, 2020)

Here’s a quick recap of the MAS Modification Guidance RFI findings:

  • Approximately 91% of participants find the guidance clear for various types of modifications
  • 93% agree the guidance will benefit industry.
  • Approximately 75% find the price proposal template instructions clear.
  • 60% feel the price proposal template will not add an additional burden. (ibid)

Based on industry feedback, the following guidance updates are now in effect:

  • Updates to the actual guidance document to improve the flow.
  • Addition of an Executive summary section describing what to expect after a modification submission.
  • Clarification of requirements. (ibid)

Industry feedback guided the following price proposal template changes:

  • Improved instructions for the Price Proposal Template.
  • A glossary was added.
  • Additional instructions for contractors with large catalogs.
  • Designed sample Price Proposal Templates including examples of different modification possibilities. (ibid)

Some commonly asked questions from the RFI:

  1. How do contractors participate in the Transactional Data Reporting (TDR) pilot? Contractors can opt to participate in TDR by submitting an eMod request. Please review the requirement for TDR on the Vendor Support Center carefully, as it is not possible to opt-out of TDR once you opt-in.
  2. Does a modification to participate in TDR need to be processed before a contractor can omit information related to the Basis of Award/Most Favored Customer (BOA/MFC) in the price proposal template/modification guidance? Yes.
  3. Does GSA intend to standardize the modification guidance according to North American Industry Specific Classification (NAICS) code and/or Special Item Number (SIN), or will the guidance be the same for all MAS contract holders? The MAS Modification Guidance will be the same for all MAS contract holders and will allow flexibility for Large Category, Subcategory, and SIN requirements.
  4. How is GSA ensuring consistent interpretation and application of MAS Modification Guidance by contracting personnel? Training will be ongoing for GSA’s internal workforce. GSA is looking to build consistency and continuously improve the modification process across the MAS program.
  5. Are contractors required to perform market research when submitting the Price Proposal Template (PPT)?  No, but may consider in order to be competitive.
  6. Which Contracting Officer/Contracting Specialist (CO/CS) will a contractor with multiple contracts work with? Contractors will work with the CO/CS assigned to each individual contract. (ibid)

GSA expects the conversation to be ongoing with industry partners and contractors through emails and various industry days. Changes and updates will continue as necessary.

Questions about the Price Proposal Templates or the recent Mass Mods? Give us a call.