Latest Updates On Federal Procurements

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December 29, 2019

The US government agencies had a lot of procurements this year. It is a responsibility for government agencies to report and collect data which the federal government can use. The government can use this date to check impact of federal procurement on the economy of the nation to make the necessary changes to their procurement policy. The Federal Acquisition Regulation (FAR) requires contracting officers to give reports about contracts. This article talks about the latest updates on federal procurements. The US government saw one large controversial procurement in 2019:

  • The move to buy services and IT products from the government’s General Services Administration.
  • A new standard for cyber security
  • Consolidation of major contracts from the General Services Administration with Multiple Award Schedules.

 However the largest contract of the Federal Government this year was that of Joint Enterprise Defense Infrastructure (JEDI), a $10 billion worth contract. There were lawsuits and bid protests that followed the contract and dramatic events like presidential statements recusal by the US Defense Secretary and a salacious dossier. The contract went to Microsoft and a lot of people wonder how Microsoft won the contract. Even since then the US Department of Defense continues to defend themselves in courts because of the contracts. The trends surrounding Donald Trump as US president made some impact on the Federal Procurement system. He’s got acting cabinet secretaries not less than 28 with more turnover rate. Trump’s administration is very unstable. Federal contractors are the ones that bore the cost as agencies struggled with the instability. The partial shutdown by the government cost the government up to $3.5 billion. Agencies struggle to meet up with work and time. The Pentagon came with the Cybersecurity Maturity Model Certification, an initiative for better cyber security. This model will need more money and time for certification. The cost will be much for small enterprises. It will affect many firms making a part of the defense industrial base to leave the market and make the rest to improve their supply chains. Another event is General Services Administration replacement of certain contracts. Example, EAGLE II, while the Air Force’s 2GIT replaces IT supplies and Support Services contract and so on.

More trends on federal procurements

A new provision on the Federal Acquisition Regulation became effective on December 23 and its title is ” Reporting of Nonconforming Items to the Government Industry Data Exchange Program. This new provision makes reporting to the Government Industry Data Exchange Program (GIDEP) a necessity for federal subcontractors and contractors. These reports are about violations and counterfeits.

How did this provision come about?

This provision came from the National Defense Authorisation Act (NDAA), 2012. The rule will cover contractors making electronic products. However this applies to other agencies outside the Department of Defense. The American government confirms from the Memorandum of April 2019 that contraband goods threaten public safety and national security which led to the amendment.

What are the counterfeit components?

The counterfeit components refers to the components that do not meet the testing and product specification for government contracts. These components pose a risk to the users. The American government tries to make sure that contractors meet up with quality assurance with regards to safety and reliability of products.

Defining the Government Industry Data Exchange Program (GIDEP)

GIDEP is a joint body between industrialists and government that cut expenditures by sharing information on production, development, design, equipment and operating cycles. Contractors can exchange knowledge on items. This reporting covers contracts that include the following:

  • Items which the contracting officer see as critical items based on their toxic or unsafe nature.
  • Items subject to standards of higher-level quality
  • Medical devices about Food and Drug Administration Report Requirements that are subject to reporting and administration requirements.
  • Commercial items that include items that are off the shelf. The contractor has to flow down this clause, FAR 52.246-26 in order to meet the necessary requirements. Contractors have the primary mandate to offer a written notification to the contracting officer in 60 days of any awareness of violations, through a third-party, record review and testing.

Federal Government Awards Contracts For Immigration Facilities

The Federal Government awarded contracts in California for immigration centres before the coming of a new state law in California. A lot of American supporters hope the law will make US Immigration and Customs Enforcement to check out other areas as the current contract expires. The contract for these facilities in Bakersfield, Adelanto, Calexico and San Diego are at $6.6 billion expected to contain up to 4000 people. There were lots of criticism about the awards by the Federal Government. A government official said the state laws that alter federal laws are harmful and inappropriate. There were arguments that such facilities violate values in California. California is likely to take the federal action to court. The contract will create 1200 jobs and add $200 million to the annual revenue.

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