LPTA Out, Fixed Price Contracts In

The National Defense Authorization Act for Fiscal Year 2017 (FY17 NDAA), signed into law by President Obama on December 23, includes limitations on a low price evaluation methodology and a preference for fixed price contracts that could have a significant impact on the way the Department of Defense (DoD) procures goods and services in the coming years. The FY17 NDAA also featured changes to the task order protest jurisdiction, which we outlined in this blog post.

The DoD’s use of Lowest Price Technically Acceptable (LPTA) evaluation methodology, which requires award to the lowest-price offeror that meets the minimum requirements, has historically been a source of criticism from industry and government alike, particularly when used for the procurement of complex goods and services. Simply put, the lowest price does not necessarily translate to quality and innovation, and can result in sub-optimal procurement decisions. DoD noted the need for restrictions on the use of LPTA in a memorandum issued in 2015 and the rescission and reissue of the DoD Source Selection Procedures in April 2016. Although DoD policy has been moving towards more limited use of the LPTA evaluation methodology, Sec. 813 of the NDAA now requires a limitation on the use of LPTA be included in the Defense Federal Acquisition Regulation Supplement (DFARS).

Continue reading: http://www.jdsupra.com/legalnews/lpta-out-fixed-price-contracts-in-89933/

Credit for Lower Tier Small Business Subcontracting


Final rule.


The U.S. Small Business Administration (SBA) is amending its regulations to implement section 1614 of the National Defense Authorization Act for Fiscal Year 2014 (NDAA 2014). Section 1614 amended the Small Business Act to provide that where a prime contractor has an individual subcontracting plan for a specific prime contract with an executive agency, the prime contractor shall receive credit towards its subcontracting plan goals for awards made to small business concerns at any tier under the contract. The changes authorized by this statute will allow an other than small prime contractor that has an individual subcontracting plan for a contract to receive credit towards its small business subcontracting goals for subcontract awards made to small business concerns at any tier, to the extent reported on the subcontracting plans of its lower tier subcontractors. The final rule also implements the statutory requirements related to the subcontracting plans of all subcontractors that are required to maintain such plans, including the requirement to monitor subcontractors’ performance and compliance toward reaching the goals set out in those plans as well as their compliance with subcontracting reporting requirements. SBA is also clarifying that the size standard for a particular subcontract must appear in the solicitation for the subcontract.


This rule is effective on January 23, 2017.

Learn more: https://www.regulations.gov/document?D=SBA_FRDOC_0001-0275

DoD Funds New Tissue Biofabrication Manufacturing Consortium

WASHINGTON, Dec. 22, 2016 — The Defense Department will fund an 87-member coalition to develop next-generation manufacturing techniques for repairing and replacing cells, tissues and organs for wounded service members, the undersecretary of defense for acquisition, technology and logistics announced yesterday at the White House.

Frank Kendall introduced the winning consortium — led by the nonprofit Advanced Regenerative Manufacturing Institute, headquartered in Manchester, New Hampshire, — whose industry, academic and government members will be part of the new Advanced Tissue Biofabrication Manufacturing Innovation Institute, or ATB-MII.

The institute is the 12th manufacturing hub awarded by the Obama administration, seven of them so far led by DoD.

Continue reading: https://www.defense.gov/News/Article/Article/1036945/dod-funds-new-tissue-biofabrication-manufacturing-consortium?source=GovDelivery

DOD watchdog lists top 10 challenges for 2017

The Department of Defense Office of Inspector General has released its 2017 Oversight Plan that outlines 10 areas of focus, including cyber.

“Increasing Cyber Security and Cyber Capabilities” is one of the DOD’s performance and management challenges the watchdog will audit in 2017, along with other areas such as acquisition, countering the terrorist threat and force readiness.

“The DOD OIG identified these challenges based on our oversight work, research, and judgment; oversight work done by other components within the DOD; input from DOD leaders; and oversight projects by the Government Accountability Office,” the report states. “While we solicited input from the DOD, we identified these challenges independently.”

Continue reading: https://fcw.com/articles/2016/12/20/dod-oig-top-10.aspx?s=fcwdaily_221216

Prison sentence for GSA Advantage fraudster

The former civilian chief of logistics and program management for the Defense Department’s Aviation and Missile Command in Virginia will serve 33 months in jail for reselling material he bought through GSA’s electronic purchasing portal.

The former civilian DOD employee, 52-year-old Roy Friend, pleaded guilty to stealing government property last March. Friend’s long-running scheme to buy and resell equipment over eBay with an accomplice stretched over five years, from August 2010 to about mid-2015, according to investigators and court documents.

Continue reading: https://fcw.com/articles/2016/12/21/gsa-advantage-thief-sentenced.aspx?s=fcwdaily_221216

3 changes to federal acquisition agencies, industry should know about

While there may be a lot of concern about “midnight regulations” coming from the White House over the last month of President Barack Obama’s term, there is no concern about the steady updates of acquisition regulations.

The Federal Acquisition Regulatory Council and the 2017 National Defense Authorization Act are providing a constant stream of changes federal agencies and industry alike need to know about.

Listen to the whole story: http://federalnewsradio.com/acquisition-policy/2016/12/3-changes-federal-acquisition-agencies-industry-know/

The NDAA & DoD acquisition

This week on “Off the Shelf”, Jon Etherton, president of Etherton and Associates,  provides a briefing on the key acquisition-related provisions in the 2017 National Defense Authorization Act (the NDAA).

The 2017 NDAA continues the Hill’s drive to reform DoD acquisition with the goal of increasing access to commercial innovation to support the warfighter.

Etherton highlights several significant provisions, including language addressing commercial items, LPTA, and the Cost Accounting Standards.  He also addresses the NDAA’s elimination, and reorganization of, the Office of Acquisition, Technology, and Logistics (AT&L).

Listen to story: http://federalnewsradio.com/off-the-shelf/2016/12/the-ndaa-dod-acquisition/

SBA and GSA, OFPP not seeing eye-to-eye on ‘rule of two’ application

A major dispute is brewing in the small business community. Just four months after the Supreme Court’s June 16 unanimous decision on the Kingdomware case, the Small Business Administration is taking a stand on the “rule of two” that is stressing out industry and agencies alike.

As a quick reminder, the nation’s highest court ruled in the Kingdomware case that the Veterans Affairs Department must continue to apply the “rule of two” for veteran-owned small businesses even if the agency surpassed its annual prime contracting goal. The “rule of two” states if an agency can find two or more qualified small businesses during market research of a contract under the Simplified Acquisition Threshold — between $3,000 and $150,000 — it must set aside the solicitation.

Continue reading: http://federalnewsradio.com/reporters-notebook-jason-miller/2016/12/sba-gsa-ofpp-not-seeing-eye-eye-rule-two-application/#more-1209158

Federal contracting experts offer advice, encouragement to women small business owners

The federal government’s biggest buyer, its largest real estate agent and its strongest advocate for small businesses have some advice for female small business owners: be yourself.

Speaking to a standing room only auditorium of women small business owners, Judith Stackhouse, small business technical adviser for the General Services Administration, said when it comes to getting in on the ground floor of federal contractors, “don’t try to fit a square into a circle.”

“Go with what you’re doing, go where your past performance is strong,” Stackhouse said during the Dec. 14 ChallengeHER event in Washington, hosted by the Small Business Administration. “If you’ve been doing landscaping [in government], build your landscaping business, but don’t use that contract to try to introduce yourself into IT, because I don’t have confidence in that.”

Continue reading: http://federalnewsradio.com/acquisition/2016/12/federal-contracting-experts-offer-advice-encouragement-women-small-business-owners/

18 Businesses Named Finalists for 2016 MARKETPLACE Governors Awards

Congratulations to WPI clients Share Corporation, Middleton Construction Consulting, Panacea Group, M Squared Engineering, Rivera & Associates, Harkinson Consulting, Inc., EFH Trucking.

MADISON, WI. Dec. 5, 2016–Eighteen Wisconsin companies have been named finalists for the 2016 MARKETPLACE Governor’s Awards, which honors outstanding Wisconsin businesses owned by minorities, women and service-disabled veterans.

More than 250 nominations were received from Wisconsin businesses of all sizes and industries. Winners will be announced at a luncheon Thursday, Dec. 14, at MARKETPLACE 2016, the governor’s conference on minority business development. The event will be held at the Potawatomi Hotel and Conference Center in Milwaukee.

Small and large businesses are being honored in two categories: the Outstanding Business Award, which recognizes established businesses that have demonstrated the capacity to grow over the past five years and have plans for continued expansion in the future; and the Rising Star Award, which honors businesses established after 2011 that have demonstrated strong growth potential.

Continue reading: http://www.pressreleasepoint.com/18-businesses-named-finalists-2016-marketplace-governors-awards