Procurement Reform

On September 4, DoD published a proposed rule updating the other transaction (OT) regulations set forth in 32 CFR part 3.  These updates are intended to implement various changes to the prototype OT statute (42 U.S.C § 4022) previously enacted by Congress.  Among other things, those changes included:

  • An expansion of the “appropriate circumstances” under which a prototype OT may be issued, to include situations involving participation by nonprofit research institutions, participation by small businesses, or opportunities “to expand the defense supply base”; and
  • Authority for DoD to issue follow-on “production” OTs on a sole source basis, provided that competitive procedures were used for award of the initial prototype OT.

Although these changes were already applicable to DoD as a matter of statute, the proposed rule would ensure that the CFR is aligned with the statute and that the regulations provide accurate guidance. More details are below.Continue Reading DoD Rolls Out Proposed Changes to Prototype OTA Regulations

Echoing the Obama Administration’s Better Buying Initiative, the Biden Administration announced the Better Contracting Initiative (“BCI”), a four-pronged initiative designed to ensure the Federal Government gets better, and more consistent, terms and prices when purchasing commercial goods and services, while enhancing support for small and disadvantaged businesses.  The Initiative’s four prongs include:Continue Reading More Bang for the Government’s Buck: The Biden Administration Announces the Better Contracting Initiative

On July 25, the GSA’s Office of Inspector General (“OIG”) published a report summarizing its audit of the GSA Transactional Data Reporting (“TDR”) pilot program.  That ongoing pilot program, which we have covered previously and have been tracking since the beginning, allows participating Federal Supply Schedule (“FSS”) contract-holders to report government-sales data each month, in exchange for relief from regulations that would require them to disclose their commercial sales practices.  According to the OIG report, however, GSA cannot objectively measure whether the TDR program is working as intended, because the pilot lacks specific objectives and performance targets.  Moreover, the data that GSA has collected from TDR participants is “not available for . . .  evaluation of the pilot.”  Although the Federal Acquisition Service (“FAS”) disagreed with some of the report’s findings, the report suggests that the TDR program remains a work-in-progress.
Continue Reading OIG Report Criticizes GSA’s TDR Pilot Program

[A modified version of this blog post was published in Law360.]

Last month, Senators Dan Sullivan (R-AK) and Maria Cantwell (D-WA) introduced legislation to “improve the requirement to purchase domestic commodities or products” under the National School Lunch Program (the “NSLP”) and the School Breakfast Program (the “SPB”).  Even if this legislation fails to make it out of Committee, it signals a continued trend to strengthen the “Buy American” requirement under these programs.Continue Reading Bipartisan Legislation Aims To Strengthen “Buy American” Requirement Under National School Lunch Program

Mac Thornberry is taking a sledgehammer to the Pentagon’s $600 hammer.

That particular bogeyman of wasteful defense spending never actually existed, but many real (and larger) inefficiencies continue to plague the defense procurement process.  Last month, the Chairman of the House Armed Services Committee released draft legislation designed to make fundamental reforms to the government’s acquisition of defense-related goods and services.  Chairman Thornberry’s bipartisan initiative, which he drafted with HASC Ranking Member Adam Smith, aims to increase the transparency, flexibility, and responsiveness of the defense acquisition system.  The Chairman launched his initiative before a standing-room-only audience at the Center for Strategic and International Studies (CSIS), where he argued that the accelerating pace of technological development and the proliferation of strategic threats compel the need for rapid, comprehensive reform.  In this post, we review some highlights of the proposal and examine the potential implications for government contractors.Continue Reading Another Attempt at Defense Procurement Reform Begins