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Tag: EPA

GSA steps up in the nick of time

GSA temporarily lifted restrictions on economic price adjustments (EPAs) in its contracts in March of this year, to fight inflation. With prices still rising, the agency this month extended the flexibilities through March 2023 and said officers can now make adjustment decisions without the need for approval from a more senior official. (Federal Times September 20, 2022)

As more and more contractors feel the crushing effects of supply chain shortages, price volatility, rising costs, and fixed income impact, a need for immediate relief for contractors couldn’t come quickly enough. The latest memo takes power that was tied up in the request and approval process and puts it into the hands of contractors and procurement officers to evaluate, make decisions and keep business uninterrupted. (ibid)

“Inflation and uncertain economic market conditions erode scarce contracting dollars, cause severe hardship on federal partners, and discourage new entrants from pursuing federal acquisition,” said GSA in the memo announcing the extension. “The acquisition workforce has both the authority and the tools to take action to mitigate the impact of inflation in federal contracts.” (ibid)

Contractors no longer have to hold their contracts for a minimum of a year before submitting price increases. The new guidance also temporarily does away with the limit of three increases per year and the 30-day waiting period between requests. (ibid)

Contractors might consider the following:

  • Request adjustments to contracts if non-price changes to the terms offer some relief to the problems caused by inflation.
  • Determine whether their current situation with once-in-a-generation inflation warrants contractual relief.
  • File a formal request to the contracting officer even if the chances of success are low, so DOD can obtain quantitative data on the scope of the issue.
  • Encourage contracting officers to amend solicitations to include EPA clauses when preparing bids. (JDSupra September 21,2023))

Is your current contract not keeping up with inflation? Give us a call, we can help.

Program UnSupport Center

Back in June, the Health and Human Services Department (HHS) announced it would halt assisted acquisition services for non-HHS customers after September 30, 2020. Until the announcement, HHS provided assistance through the Program Support Center (PSC). After the deadline, all 19 agencies (with more than $1.4 billion in contracts per year) who had contracts administered by HHS will have to look elsewhere or figure out how to administer the contracts themselves. (Government Executive, September 13, 2019)

PSC lacks the procedures, policies, and internal controls to work with agencies outside of HHS. In addition, questions have been raised as to whether the PSC is actually legally authorized to administer contracts for agencies outside of HHS. (ibid)

Many questions remain unanswered, such as the fate of bids in the process of evaluation. Unfortunately, the PSC is not communicating with customers at this time, according to Federal News Network. This is surprising, as the Office of the Assistant Secretary of Administration focused on the need for “continuous communication” in customer service. (ibid)

So where will all of these contracts be administered? An EPA spokesperson said EPA contracts will either placed on new or existing EPA contract vehicles or handled through interagency agreements with other federal agencies. The Office of Special Counsel is partnering with Merit Systems Protection Board to process a number of mission-critical procurements. In 2020 GSA is assisting OSC with their procurement requirements. (ibid)

If you have questions about how this affects a current bid or your current HHS-administered contract, give us a call.

HHS Did What?

The Department of Health and Human Services Program Support Center (PSC) has decided to end assisted acquisition services. Some agencies under the PSC umbrella include: the Office of Personnel Management, the Office of Special counsel, the Environmental Protection Agency, and the Defense Department (DoD).  (DoD accounts for roughly $1 billion of the $1.4 billion total contract amount under the PSC.) (Federal News Network, July 22, 2019)

It appears HHS stopped offering assisted acquisition services in mid June, just as agencies are preparing for fourth quarter acquisitions. This likely includes the $150 million multiple-award contract PSC was about to award for EPA along with a number of “in-process” contracts for DoD. Additionally, any award for the prior four years must be moved to other agencies or absorbed by the “home” agency by September 20, 2020. (ibid)

So why exactly did HHS decide to stop its assisted acquisition services? In a memo to the civilian agency customers, they said they do not have the internal controls, policies, or procedures necessary. DoD customers received a comparable memo. (ibid)

Why now? Possibly due to the manner in which PSC has handled classified information for DoD and other agencies’ procurements through the self-certification process. The self-certification process is achieved through the DD-254 form. However, a recent audit found that PSC does not actually perform classified work. (ibid)

Unfortunately, this abrupt change is putting a burden on many agencies. Since the decision was made and will affect the fourth-quarter spending, agencies must now scramble to get other assisted acquisition service provider help. The decision also affects vendors, who spend time and money to bid on solicitations that must restart. And the question remains: will vendors lose work from existing contract awards that they bid on and won?

Roughly one-third of all federal spending occurs in the fourth quarter, with one-quarter of the spending in September. Administrators plan to meet with member companies, DoD ,and the Office of Federal Procurement Policy to arrive at  a game plan going forward. (Federal News Network, July 22, 2019)

Will this affect a bid you are working on or a recent contract award? If so, give us a call.