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Tag: Office of Management and Budget

Government Contractor Aid

A recent study conducted by the National Defense Industrial Association (NDIA) found that over half of small business government contractors are losing money due to a reduction in billable hours as a direct result of stay-at-home orders. To assist, the DoD is adjusting approximately 1,500 contracts to aid with cash flow for those contractors suffering financial strain. (Federal News Network, March 30, 2020)

The Defense Contract Management Agency is administering a mass modification to increase the amount of money allowed to pay vendors who have not finished their work under their current contracts. These “progress payments” will be increased to 95 percent for small companies and 90 percent for large companies. (ibid)

Additionally, provisions for contractors that cannot telework due to the nature of their work were signed into law on 27 March 27 2020 under the Coronavirus Aid, Relief and Economic Security Act, aimed at supporting individuals and businesses struggling with the economic downturn,  as a result of the pandemic. (Government Executive, March 31, 2020)

For some contractors, agencies may “modify the terms and conditions of a contract or other agreement” to reimburse at the minimum applicable contract billing rates” up to an “average of 40 hours per week for any paid leave a contractor provides to keep its employees or subcontractors in a ready state” as stated under the Act. (ibid)

The National Defense Industrial Association and the Professional Services Council both commend the act. During the pandemic, the Act will assist in ensuring contractors are part of the economic relief efforts and kept in a ready state. The legislation runs through the end of the fiscal year, 30 September 2020.

Questions about your minimum billing rates or how to obtain reimbursement? Give us a call.

More COVID-19 Guidance

Last week the Office of Management and Budget (OMB) updated its agency guidance for federal contractors, as a response to the COVID-19 pandemic. The three main takeaways are:

  • Agencies are encouraged to work with their contractors to allow for the maximization of telework.
  • Agencies must be flexible providing extensions to performance dates if working virtually isn’t possible or if a contractor must quarantine. Agencies should also weigh whether to keep key personnel in a mobile-ready state for national security measures.
  • Agencies are urged to leverage the special emergency procurement authorized in connection with the emergency declaration under the “Stafford Act”. These include increases to: the micro-purchase threshold; the simplified acquisition threshold; and the threshold for using simplified procedures for certain commercial items. These are designed to reduce discord for contractors, especially small businesses, allowing for a more rapid response to the increasing demands agencies face. (Nextgov, March 22, 2020)

The agency guidance comes after trade groups and lawmakers strongly voiced the need for contractor guidance. The updated guidance includes a section of frequently asked questions, including contractor exposure to COVID-19. (ibid)

OMB also issued technology guidance for use during the COVID-19 national emergency. The technology guidance also includes a FAQ section, with steps to ensure IT and cybersecurity measures are met while working remotely. It urges agencies to continue updating their websites to enable public access to government services.

Need some help figuring out OMBs agency guidance for contractors? Give us a call.

Telework, the New (Temporary?) Norm

In a recent letter to her contracting staff, Soraya Correa, Homeland Security’s chief procurement officer, asked her contracting staff to stay apprised of the outbreak of COVID-19, before taking any trips. She is relying on the honor system for employees who must take trips to “affected areas, to contact their managers prior to their return to discuss possible telework or leave options.” Also, if they’ve been in close contact with a person “known to have COVID-19” or if airport screeners told them to self-quarantine after returning from overseas travel. Correa went on to say, “if contract performance is affected due to the COVID-19 situation, such as the need for alternate work locations, or travel or schedule changes, the contracting officer is the authority to discuss this with your company.” (FCW, March 9, 2020)

A spokesman for the Professional Services Council expects adjustments of this nature to be the new normal. He expects alternatives to how and where contracting personnel work, with programs necessitating a high level of security being prioritized. (ibid)

Federal agencies are already beginning to shake things up. One example is a recent notice on beta.SAM.gov, where the Department of Defense suggested that attendees of its National Cyber Range Complex Event Planning, Operations, and Support contracting meeting in Florida next week, have alternates at the ready. The notice also mentioned staying tuned in, as the outbreak could cancel the event. (ibid)

Need help determining if your contract may be at risk due to travel/work restrictions as a result of the virus outbreak ? Give us a call.

Shared Service QSMOs

The big takeaway from last week’s Association of Government Accountants’ 2019 shared services summit: it will take a few years to standardize shared services, especially for grants management. (FedScoop, November 14, 2019)

In April, the Office of Management and Budget (OMB) chose four agencies as Quality Service Management Offices (QSMOs):

  • GSA – to oversee a human resources marketplace
  • Department of Treasury – for financial services
  • Department of Health and Human Services – for grants management
  • Cybersecurity and Infrastructure Security Agency – for cybersecurity (FedScoop, April 26, 2019)

QSMOs have started hiring and transitioning from the old payroll system to Software-as-a-Service. This NewPay Initiative tops the list in moving to shared services. GSA awarded a blanket purchase agreement for NewPay in September 2018 to reduce risks and costs and followed up with multi-million dollar task orders. (ibid)

According to Earl Pinto, deputy associate administrator of the Office of Shared Solutions and Performance Improvement within GSA, “these are not short term projects, and I would say that’s probably the biggest challenge because we know we’ve got a process. Standards first … and that has taken, for several mission-support functions, well over a year to get to standards – some over two years.” (ibid)

Some agencies, such as the Interior Business Center are not clear as to whether they will lean towards NewPay or work through current providers, GSA, or a separate appropriation. (ibid)

Some unknown pieces remain. Will agencies always pay for the services delivered or will it be streamlined in some manner? It may be quite some time before we know for sure.

Questions on QSMOs? Call us and we can explain it.

Reforming the Reformers

Over the next few years, GSA will institute approximately 25 reforms to improve the federal marketplace, with a goal of easing the buying and selling process for all involved. (Federal Times, July 24, 2019)

Alan Thomas, the commissioner of GSA’s Federal Acquisition Service, has named the following four initiatives as ‘cornerstones,’ bound to the success of the other ‘stones’ around them:

  1. Developing an enterprise-wide contract writing system — provides the contracting workforce “a single, core system that stores all of our data and has a set of common business processes”
  2. Managing catalog data — changing how industry systems and processes are represented to buying agencies
  3. Consolidating the Multiple Award Schedule program — occurring as we write, the current 24 multiple award schedules are merging into a single Schedule.
  4. Instituting a commercial platform initiative — an online buying platform, much like Amazon, which will allow government purchasers to order products without a contracting process. (ibid)

Many other reforms will go into effect over time. Additionally, GSA is working to make smaller improvements that make contractors and customer agencies more aware of available tools. These tools should simplify the contracting process. (ibid)

Have questions about the reforms and how they will affect the current procurement process? Give us a call.