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May - Jun 2011 Volume 7, Issue 3 |
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With the appointment of Shay Assad as the Department of Defense’s (DOD) new Director of Defense Pricing, many outlets are reporting that DOD is going to put new scrutiny on procurement pricing. According to Washington Technology, Mr. Assad will be responsible for implementing the Better Buying Power Initiative. Better Buying Power Initiative is a program instituted by Ashton Carter, Undersecretary for Defense Acquisition, Technology, and Logistics, that concentrates on how much DOD pays for the things that it buys. As part of the Initiative, DOD is working to improve the skills of its workforce in the areas of price negotiations and pricing strategy. In addition, DOD has created a Should-Cost Guidance tool that Mr. Assad will continue to implement. According to Washington Technology, the “will-cost/should-cost” is an internal acquisition management tool that is geared to better estimate the costs of defense programs and save money. The goal is to avoid paying more than initially negotiated, if not paying less.” Should-cost analysis includes:
Contractors working with, or interested in working with, the DOD should learn more about should-cost analysis as it will be a major part of their business development approach in the future.
The General Services Administration (GSA) is now requiring the completion of a Section 508 Certification clause on all GSA Schedule 70 (IT Schedule) contracts. The clause is to be included in your GSA price list. The new certification clause example: 23. SECTION 508 COMPLIANCE. The offeror is required to submit with its offer a designated area on its website that outlines the Voluntary Product Accessibility Template (VPAT) or equivalent qualification, which ultimately becomes the Government Product Accessibility Template (GPAT). Section 508 compliance information on the supplies and services in this contract are available at the following website address (URL): |
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Newsflash |
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TOP 100 Government Contractor List Announced In what has become an annual tradition in Washington, DC the list of the top government contractors has been compiled and reported to the media. Washington Technology, as well as other publications, has reproduced the list. Companies rounding out the top 5 include: 1.) Lockheed Martin Corp., 2.) Northrop Grumman, 3.) Boeing Co., 4.) Raytheon Co., and 5.) General Dynamics Corp. Use the following link for the complete list: Washington Technology Top 100 List |
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Update |
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Federal Spending Reductions Cause Uncertainty Among Contractors The recent federal spending resolution, as well as the continuous calls for spending reductions throughout the federal government, has become a cause for concern for many small business contractors. The political landscape seems to suggest that agencies are going to be facing significant cuts in many programs that will inevitability impact the contracting community. The most drastic concern will be elimination of federal programs/activities, thus eliminating contracting opportunities. However, as you step away from the drastic, you are still faced with the realization that agencies are going to be most cost-sensitive than ever. Procurement officials are going to demand more for less during negotiations, reduce purchasing to the most necessary of items, and place more emphasis on price when evaluating bids. Contractors need to be prepared for this changing landscape. Now is the time to revisit your business development plans to ensure you are ready for this new environment. It is also important to remain focused on your current customers so that they understand the value you are providing to them.
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June 10, 2011 |
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