2010 News (Archive)

  • Dec
  • 21
  • 2010

Ethics, Integrity, and Accountability Memo

On December 21st, the Deputy Secretary of Defense issued a memorandum entitled "Ethics, Integrity, and Accountability" stating DoD is committed to promoting an ethical culture in the workplace and encouraging its personnel to lead by example, provide ethical decision-making, and do the right thing. The memo is a result of a Panel on Contracting Integrity 2010 initiative in the area of "Sustained Senior Leadership."

The memorandum is posted in its entirety here.

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  • Nov
  • 22
  • 2010

New Direction Issued on Coordination of Contracting Activities in USCENTCOM AOR

The Deputy Secretary of Defense issued a memorandum on November 22, 2010, on synchronization of contracting resources in support of contingency operations in the United States Central Command (USCENTCOM) Area of Responsibility (AOR). The memorandum rescinds and replaces the October 31, 2006, DepSecDef memo on this topic and addresses the expansion of contracting mission coverage to include Kuwait and Pakistan. The memorandum directs that:

  1. The USCENTCOM Commander has coordinating authority over all supporting DoD contracting organizations.
  2. All contracting activities awarding contracts for Iraq, Afghanistan, Kuwait, and Pakistan must comply with Theater Business Clearance (TBC)/Contract Administration Delegation (CAD) requirements.
  3. The Secretary of the Army is the DoD Executive Agent for Contracting for Operation New Dawn (OND)/Operation Enduring Freedom (OEF), Kuwait and Pakistan.
  4. All contracting activities awarding contracts for Iraq, Afghanistan, Kuwait, and Pakistan must comply with USCENTCOM policies, procedures, and fragmentary orders.
  5. The Under Secretary of Defense for Acquisition, Technology and Logistics will issue a DoD instruction to identify assignments and arrangements associated with synchronizing efforts for OND/OEF, Kuwait and Pakistan.

The memorandum is posted in its entirety at: http://www.acq.osd.mil/dpap/pacc/cc/docs/CC_CENTCOMAOR.pdf.

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  • Nov
  • 19
  • 2010

Improving DoD Acquisition Requirements Development.

On November 19, the Principal Deputy USD(AT&L) issued a memorandum entitled "Improving DoD Acquisition Requirements Development." This memo resulted from the Panel on Contracting Integrity 2010 actions including re-invigorating the need for requirements training for acquisition professionals.

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  • Nov
  • 8
  • 2010

Theater Business Clearance Policy Updated; Webinars and Podcast Discuss Changes

Theater Business Clearance/Contract Administration Delegation (TBC/CAD) is a contingency contracting business process that enables the Combatant Commander to have in-theater visibility of, and a level of control over, contracted services and associated personnel as well as materials arriving in theater through commercial transportation. It helps to ensure contracts are in consonance with in-country commanders’ plans and contain the appropriate terms and conditions for work to be accomplished in areas designated by the Combatant Commander. TBC has been required for external support and systems support contracts executing or delivering in Iraq and Afghanistan since late 2007 and will be required for Kuwait and Pakistan effective November 1, 2010.

On October 13, 2010, the Director, Defense Procurement and Acquisition Policy (DPAP) issued two memoranda updating TBC requirements. One calls for TBC to be integrated to preclude issuance of LOAs generated by the Synchronized Pre-deployment and Operational Tracker (SPOT) without prior TBC approval of the associated contract(s), effective January 15, 2011. The other memo extends the effective date for expansion of TBC/CAD coverage within the U.S. Central Command (USCENTCOM) area of responsibility (AOR), applicable to Kuwait and Pakistan, to November 1, 2010. The memo also calls on components to report back to the Director, DPAP, on their completion of TBC/CAD requirements for Pakistan and Kuwait by November 30, 2010.

The USCENTCOM Joint Theater Support Contracting Command (JTSCC) TBC Director will be holding informational webinars to discuss the latest changes to TBC/CAD policy, including the expansion to Kuwait and Pakistan. Webinar dates, times, and links are as follows. (Note that the webinar content presumes basic knowledge of the TBC/CAD process.)

In addition, DPAP has developed a TBC/CAD podcast that provides basic information on TBC in the USCENTCOM AOR, which will be posted in the next few days in the supplemental information section of the DFARS PGI 225.74. See http://www.acq.osd.mil/dpap/dars/pgi/pgi_htm/PGI225_74.htm.

For more information on the TBC, contact Harvey Von Hollen, CENTCOM Contracting Command (C3) TBC Program Manager, Harvey.vonhollen@us.army.mil; or Bill Reich, Senior Procurement Analyst, DPAP CCAP, contingencycontracting@osd.mil.

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  • Nov
  • 4
  • 2010

Army Directorate of Logistics New Policy

Army Directorate of Logistics instituted a new policy in Kuwait for the DFACs -- contractors must pay for meals at the DFAC; LOIs for free meals will no longer be accepted.

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  • Sep
  • 14
  • 2010

Gen. Petraeus Issues Counterinsurgency Contracting Guidance

On 8 September 2010, Gen. David Petraeus issued counterinsurgency (COIN) contracting guidance calling on commanders, contracting personnel, military personnel, and civilians of the North Atlantic Treaty Organization (NATO)-International Security Assistance Force (ISAF) and U.S. Forces-Afghanistan to “be better buyers and buy from better people.” Acknowledging that, “if we spend large quantities of international contracting funds quickly and with insufficient oversight, it is likely that some of those funds will unintentionally fuel corruption, finance insurgent organizations, strengthen criminal patronage networks, and undermine our efforts in Afghanistan,” Gen. Petraeus emphasized the need for COIN contracting to be “Commander’s business.”

The General said he expects commanders to “use intelligence to inform our contracting and ensure those with whom we contract work for the best interests of the Afghan people.” Accordingly, he offered the following guidance, consistent with NATO and national contracting laws and regulations:

  • Understand the role of contracting in COIN
  • Hire Afghans first, buy Afghan products, and build Afghan capacity
  • Know those with whom we are contracting
  • Exercise responsible contracting practices
  • Integrate contracting into intelligence, plans, and operations
  • Consult and involve local leaders
  • Invest in oversight and enforce contract requirements
  • Act on identification of links between contractors and criminal networks
  • Get the story out

The full guidance document is available at http://www.isaf.nato.int/article/isaf-releases/comisafs-counterinsurgency-coin-contracting-guidance.html


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  • Sep
  • 2
  • 2010

Contingency Contracting Team Hosts Webinars

As a new means of increasing compliance with contingency operations requirements and, potentially, the efficiency and effectiveness of contracting operations, the DPAP Contingency Contracting team has begun hosting Webinars. These events are educating targeted members of the acquisition workforce on topics such as the following:

  • Theater Business Clearance (TBC)/Contract Administration Delegation (CAD)
  • Geographical Combatant Command (GCC) Operational Contract Support (OCS) Webpages
  • Contingency Contracting Webpages
  • Synchronized Predeployment Operational Tracker (SPOT)
  • 3in1 Tool
  • Online Contingency Contracting Officer’s After Action Report (AAR)
  • Contingency Acquisition Support Model (cASM)
  • Contingency Contracting Officer’s Representative (CCOR) Handbook.

TBC/CAD Webinars were held in June 2010. The resulting questions and answers are available under the TBC resource list at http://www2.centcom.mil/sites/contracts/Pages/Default.aspx

For further information on the webinars, contact contingencycontracting@osd.mil.

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  • Aug
  • 24
  • 2010

Defense Contingency Contracting Officer’s Representative (COR) Handbook Now Available

DPAP’s Contingency Contracting team has released the Defense Contingency Contracting Officer’s Representative (COR) Handbook (DCCORH) in electronic format. The DCCORH is available on the DPAP website at: http://www.acq.osd.mil/dpap/ccap/cc/docs/DCCORH_full_6-30-10.pdf

The DCCORH provides the basic knowledge and tools needed by CORs to effectively support contingency operations. The handbook is designed specifically to address the realities faced by CORs in operations outside the continental United States (OCONUS). The information in the handbook is extracted from numerous sources within the defense acquisition community. Those sources include the Federal Acquisition Regulation (FAR); the Defense Federal Acquisition Regulation Supplement (DFARS); the Joint Ethics Regulation (JER); DoD directives, instructions, publications, and policies; and countless CORs and contingency contracting officers (CCOs) who have learned hard lessons in deployed environments.

In FY 2011, additional tools, samples, templates, forms, and guides will be available for download to a deployable CD; and hard copies of the handbook will be published.

For more information on the DCCORH, contact Lt Col Ann Christianson at Fiona.christianson@osd.mil or 703-695-3725.

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  • Aug
  • 3
  • 2010

Contractors Will Take the Place of Troops in Iraq

As U.S. troops pull out of Iraq, the State Department will need to rely extensively on security contractors. Their presence raises issues of oversight and cost -- and what happens if those contractors are targeted by insurgents? Grant Green of the Commission on Wartime Contracting in Iraq and Afghanistan talks to Steve Inskeep about what contractors will be responsible for.

Click here for the memorandum

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  • Aug
  • 4
  • 2010

Small Business Goal Achievement Fiscal Year 2010

Dr. Carter, USD(AT&L), recently signed the memorandum titled "Small Business Goal Achievement Fiscal Year 2010" encouraging DoD components to seek contracting opportunities with small businesses. Each year the Department establishes goals with each Component to help achieve the Federal-wide statutory small business goal of 23 percent. Achieving the goals in FY 2010 is particularly important because of small businesses' role in economic recovery. Further information is provided within the memorandum.

Click here for the memorandum

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  • May
  • 27
  • 2010

DoD Ethics Survey - Focus Group Sessions

Part 2 of the DoD Survey on Values-based Ethics - conducting focus group sessions will be held on June 22 and 23. The online portion is complete. See previous memorandum for participants signed by Mr. Frank Kendall, Principal Deputy, USD(AT&L) under News, March 15, 2010.

Participation is voluntary. Interested personnel must contact the contractor point of contact identified in the memo below dated May 27, 2010

Click here for the memorandum

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  • May
  • 18
  • 2010

DPAP Contingency Contracting Publicizes Resources at 2010 Air Force Worldwide Contracting Awards & Training Conference

The Defense Procurement and Acquisition Policy (DPAP) Contingency Contracting (CC) and Program Development and Integration (PDI) team publicized some of its new resources at the 2010 Air Force Worldwide Contracting Awards and Training Conference, 26-28 April in Buena Vista, Florida. At its Contingency Contracting Tools display table, CC/PDI showcased two tools: 3in1 Tool and cASM, and two contingency contracting handbooks: Contingency Contracting: A Joint Handbook for the 21st Century and Joint Contingency Contracting Officer’s Representative (COR) Handbook.

3in1 Tool

The 3in1 tool, which CC demonstrated at the conference, is a technology-based solution to record and transfer data used by the Defense agencies when conducting on-the-spot, over-the-counter, field purchases of supplies and non-personal services (cash-and-carry type purchases). The tool is a small, lightweight device that will capture and record purchase, payment, and receiving information, including the user's receipt of goods and vendor acknowledgement of payment. The device will automatically transfer the data to the 3in1 Module in the Joint Contingency Contracting System (JCCS). A brochure and short brief offering more information on this tool are available at http://www.acq.osd.mil/dpap/pacc/cc/contingency_tools.html.

cASM Tool

The cASM tool, demonstrated by PDI at the conference, is a Web-based, simple-to-use application designed to assist the individuals responsible for initiating contracting requirements in an expeditionary environment. The application will identify the documents required to initiate a contract, provide templates for the documents, prompt the user for the information required to complete the documents, and route the documents to the appropriate reviewers and approvers. cASM will also alert individuals when it is their responsibility to take action on the requirements package. cASM's output will be a completed, approved contract requirements package for a forward-deployed contracting office to take action. A brochure with more information on cASM is available for download at http://www.acq.osd.mil/dpap/pacc/cc/contingency_tools.html.

Contingency Contracting Handbooks

The CC team publicized its contingency contracting handbooks with brochures and CDs at the conference. Contingency Contracting: A Joint Handbook for the 21st Century is a pocket-sized handbook that, together with an accompanying DVD, provides the essential information, tools, and training for the Contingency Contracting Officer to meet the challenges he or she will face in any contingency mission or environment. The current version (Version 2) is available for download at http://www.acq.osd.mil/dpap/pacc/cc/jcchb/. Version 3 will be released in June/July 2010 and will feature several updates and other improvements.

The Joint Contingency Contracting Officer’s Representative (COR) Handbook, also publicized at the conference, will provide the basic knowledge and tools needed by CORs to effectively support contingency operations. The handbook is designed specifically to address the realities faced by CORs in operations outside the continental United States (OCONUS). The draft handbook is available for download at http://www.acq.osd.mil/dpap/ccap/cc/docs/JCCORH_3-23-10_for_Web.pdf. The final version will be available in June 2010. In July, additional tools, samples, templates, forms, and guides will be provided for download to a deployable CD.

The Conference

The purpose of the 2010 Air Force Worldwide Contracting Awards and Training Conference was to promote “Three ‘eyes’ to the future: integrity, innovation, and investment.” The conference website (https://www.ncsi.com/afcc10/index.shtml) reports that the event “was a resounding success.” For more information on these CC resources, contact Lt Col Ann Christianson at Fiona.christianson@osd.mil or 703-699-3728.

Lt Col Ann Christianson and Mr. Charles Lord offered demonstrations, CDs, and brochures at DPAP’s Contingency Contracting Tools display table.

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  • May
  • 11
  • 2010

DPAP Contingency Contracting Prepares to Release First Edition of “Joint Contingency Contracting Officer’s Representative (COR) Handbook”

DPAP’s Contingency Contracting team is preparing to release the first edition of its “Joint Contingency Contracting Officer’s Representative (COR) Handbook” (JCCORH). After adjudicating coordination comments, the team will make the first edition available for download in May 2010. In July, additional tools, samples, templates, forms, and guides will be available for download to a deployable CD.

The JCCORH will provide the basic knowledge and tools needed by CORs to effectively support contingency operations. The handbook is designed specifically to address the realities faced by CORs in operations outside the continental United States (OCONUS). The information in the handbook is extracted from numerous sources within the defense acquisition community. Those sources include the Federal Acquisition Regulation (FAR); the Defense Federal Acquisition Regulation Supplement (DFARS); the Joint Ethics Regulation (JER); DoD directives, instructions, publications, and policies; and countless CORs and contingency contracting officers (CCOs) who have learned hard lessons in deployed environments.

The coordination draft of the JCCORH currently is posted on the DPAP website at: http://www.acq.osd.mil/dpap/ccap/cc/docs/JCCORH_3-23-10_for_Web.pdf

For more information on the handbook, contact Lt Col Ann Christianson at Fiona.christianson@osd.mil or 703-695-3725..

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  • May
  • 06
  • 2010

Establishment of a new National Incident Action (NIA) Code to track procurement actions made in support of the Deepwater Horizon Oil Spill Response.

The purpose of this note is to advise you of the establishment of a new National Incident Action (NIA) Code to track procurement actions made in support of the Deepwater Horizon Oil Spill Response. As explained below, this action does not trigger or otherwise authorize agencies to use any Emergency Acquisition Flexibilities in Federal Acquisition Regulation (FAR) 18.2.

Effective immediately, for agencies involved in the oil spill response, related procurement actions should be reported as follows in FPDS-NG:

  • - Web Portal users should select the value "Gulf Oil Spill 0410" in the National Interest Action drop-down box.
  • - Contract Writing Systems using FPDS-NG V1.3 or V1.4 shall use the code "O10G" when creating/updating documents through Business Services.

The NIA value for Deepwater Horizon Oil Spill is currently valid from April 25, 2010 to August 25, 2010. Please note: This NIA Code should be used only to facilitate cost collection and reporting. Use of this NIA Code does not authorize or justify use of any Emergency Acquisition Flexibilities in FAR 18.2. However, the acquisition flexibilities described in FAR 18.1 may be available, as well as others in agency acquisition supplements, to support the Deepwater Horizon Oil Spill Response at this time.

If you have questions regarding use of the NIA code in FPDS-NG, please contact Kate Oliver, at kathleen.oliver@gsa.gov . Agency questions regarding use of FAR Part 18 and emergency acquisition flexibilities should be directed to Mindy Connolly, at mconnolly@omb.eop.gov.

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  • May
  • 05
  • 2010

DPAP Contingency Contracting Pilots CCO After-Action Report

Lessons learned in contracting often have a silver lining: the subsequent improvements that result. Capturing lessons learned can be difficult in the complex, fast-paced environment of contingency contracting. DPAP is launching a standardized online form, called the After Action Report (AAR), as a tool to capture lessons learned and other information from recently returning deployed Contingency Contracting Officers (CCOs) for analysis. The DPAP Contingency Contracting office has begun a pilot of the AAR tool to collect information from the CCOs who have recently returned from Haiti. The template is open for a 30-day period ending 5 May, after which DPAP will assimilate results. The substantive answers will be assessed and summarized for the benefit of the Department. The administrative answers (i.e., feedback on the AAR template, which is collected in the last five questions) will be used to refine the tool before it is rolled out more broadly.

The electronic template, in fillable Portable Document Format (PDF), is available on a password-protected Web site. Individual CCOs will be given an address for that website, a user ID, and a password; and will be asked to answer the pre-set questions and submit their answers online. The template offers the benefits of pull-down menus and multiple choice questions to speed the process. The questions and answer options were developed by a Joint DoD working group, including Service representatives. While the tool captures individual feedback, the data are not meant for attribution to any single person, but rather to reflect a collection of different viewpoints. Questions focus on deployment-specific topics, including:

  • Access to equipment, contracting resources, and communication means;
  • Personnel requirements and impact on workload;
  • Customer requirements packages;
  • Contract writing system;
  • Means of solicitation;
  • Type of agreements in place; and
  • Means of payment.

For more information or to provide comments, visit the AAR Website at https://ccoaar.lmicdn.org/default.aspx (user name: GeneralUser; password: AARreport!1) or contact Lt Col Ann Christianson at Fiona.christianson@osd.mil or 703-695-3725.

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  • Apr
  • 22
  • 2010

Public Meeting ANPR DFARS 2008-D028 - Safeguarding Unclassified Information

DPAP and DDR&E conducted a public hearing at NASA’s Auditorium on April 22, 2010, to hear industry views on the Safeguarding of Unclassified Information. An Advance Notice of Proposed Rulemaking (ANPR) with a notice of public meeting was published in the Federal Register (75 FR 9563) on March 3, 2010. Below are the oral presentations by DoD; Professional Services Council; Aerospace Industries Association (AIA); TechAmerica; the Institute for Cyber Security; McAfee; Defense Group, Inc; Georgia Institute of Technology; and Operational Research Consultants. These presentations are the official record of the meeting and will be provided to the DAR Council for review with DFARS Case 2008-D028, Safeguarding of Unclassified Information. Also provided is the list of attendees.



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  • Apr
  • 09
  • 2010

Panel On Contracting Integrity

As one of its published actions for 2009, Subcommittee 2 of the Panel on Contracting Integrity developed case studies and articles on ethics and integrity for publication/dissemination to allow acquisition personnel to review real and hypothetical scenarios and determine what they would do if faced with a similar situation.

Articles and Case Studies can be found here

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  • Mar
  • 15
  • 2010

DOD Ethics Survey Launch

Section 813 of the John Warner National Defense Authorization Act for Fiscal Year 2007 directed the Department of Defense to convene a panel of senior leaders representing a cross section of the Department. In a February 16, 2007 memorandum, the Under Secretary of Defense (Acquisition, Technology and Logistics), USD(AT&L), complied with Section 813 by formally establishing the Panel on Contracting Integrity. USD(AT&L) designated the role of the Panel as a formal body to take a holistic view of all ongoing efforts and initiatives to improve performance in identified areas of weakness.

An action of Subcommittee 10 of the Panel is to establish a Department of Defense-Wide Value Based Ethics Program. In order to accomplish this, a contract was awarded to Human Resources Research Organization (HumRRO) to conduct the survey, perform analysis and made recommendations for creation of global DoD value-based ethics program.

Defense Manpower Data Center (DMDC) approved the survey and provided emails from which the contractor randomly selected military and civilian personnel to participate in the survey. A memorandum dated March 9, 2010 was signed by Mr. Frank Kendall, Principal Deputy, USD(AT&L), is attached.

Memorandum for Survey Participants

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  • Feb
  • 26
  • 2010

NOTICE: WTO GPA Designated Countries are not the same as Qualifying Countries.

On November 23, 2009, DoD published a notice in the Federal Register that updated the list of World Trade Organization Government Procurement Agreement countries that are “designated countries” in the trade agreements provisions and clauses in DFARS part 252. The notice precipitated several questions regarding the difference between a designated country and a qualifying country and eligibility for an exception to the Specialty Metals restrictions imposed by 10 USC 2533b.

Designated Country: The term “designated country” refers to trade agreements, specifically the World Trade Organization Government Procurement Agreement (WTO GPA). Eligible products from designated countries are entitled to nondiscriminatory treatment in acquisitions subject to the trade agreements. Further, in acquisitions that are subject to the World Trade Organization Government Procurement Agreement, there are purchase restrictions against buying products from non-designated countries. Most DoD acquisitions are NOT subject to trade agreements. Trade agreements only apply to acquisitions of items of the types listed at DFARS 225.401-70. A designated country does not provide any exception to the specialty metals restrictions.

Qualifying Country: A “qualifying country” is a country that has a reciprocal defense procurement memorandum of understanding or international agreement with the United States in which both countries agree to remove barriers to purchase of supplies produced in the other country or services performed by sources of the other country. Qualifying countries are: Australia; Austria; Belgium; Canada; Denmark; Egypt; Finland; France; Germany; Greece; Israel; Italy; Luxembourg; Netherlands; Norway; Portugal; Spain; Sweden; Switzerland; Turkey; United Kingdom of Great Britain and Northern Ireland. They are listed at DFARS 225.003(10).

Exceptions to Specialty Metals Restrictions: Exceptions to Specialty Metals restrictions apply to Qualifying Countries, not to Designated Countries. DFARS 225.7003-3(b)(4) provides an exception to the specialty metals restrictions of 10 U.S.C. 2533b as follows: "Items listed in 225.7003-2(a), manufactured in a qualifying country or containing specialty metals melted or produced in a qualifying country. This exception is based on the statutory exception at 10 U.S.C. 2533b(d), Exception Relating to Agreements with Foreign Governments.

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  • Jan
  • 26
  • 2010

DoD Task Force on Wartime Contracting Submits Report to USD(AT&L)

The DoD Task Force on Wartime Contracting in Iraq and Afghanistan (TFWC) submitted its report to the USD(AT&L) on December 17, 2009. After examining the eight issues of immediate concern identified in the Commission on Wartime Contracting interim report, and the 35 associated observations, the Task Force concluded that the Department has initiatives underway that address all 35 observations.

The DoD Task Force on Wartime Contracting in Iraq and Afghanistan (TFWC) submitted its report to the USD(AT&L) on December 17, 2009.

In a memorandum dated July 26, 2009, Dr. Ashton B. Carter, Under Secretary of Defense for Acquisition, Technology and Logistics, established the TFWC. In the memorandum, Dr. Carter required that the Task Force evaluate the June 10, 2009, interim report of the Commission on Wartime Contracting in Iraq and Afghanistan (COWC) , CWC Interim Report, At What Cost? with particular focus on the interim report’s eight “Issues of Immediate Concern”:

  1. Risk associated with drawdown of troops in Iraq
  2. Shortage of contract management personnel in theater and training
  3. Acceleration of transition to the new LOGCAP IV contract
  4. Adequacy of contractor business systems
  5. Greater accountability in the use of subcontractors
  6. Proper transition of lessons learned from Iraq to Afghanistan
  7. Establishment of a contracting command in Afghanistan
  8. Proper training and equipping of security contractors.

Chaired by Mr. Shay D. Assad, Director, Defense Procurement and Acquisition Policy, the TFWC commenced on August 11, 2009. The TFWC had the following objectives: mapping Commission observations to the eight issues of immediate concern, identifying current Department initiatives, and tracking whether current initiatives address the Interim Report’s topics.

The TFWC documented its analysis and reported to Dr. Carter its conclusion that the Department has initiatives underway that address all 35 Commission observations. The Department had embarked upon most initiatives (94 percent) before the COWC interim report was issued. The Department undertook the remaining initiatives (6 percent) following the COWC interim report publication. In most such cases, the Services or Components had begun initiatives; those initiatives were elevated to the Department level after COWC issued its interim report.

The Task Force reported that it believes the DoD initiatives are the right solution set and therefore does not recommend pursuing alternatives. The progress on these initiatives is largely moving forward as planned, but some key initiatives, primarily in the area of resourcing contingency contracting officer’s representatives and subject matter experts, are experiencing major challenges. The Task Force is focusing on improving progress in these areas and will continue to work with senior leaders to remove the barriers. Going forward, the assigned leaders for each such initiative will provide the TFWC and the USD(AT&L) with quarterly status updates, until the major challenges are removed.

The Department also provided the TFWC report to the COWC co-chairmen and interested Congressional committees.

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  • Jan
  • 20
  • 2010

Subcommittee Explores Contractor Business System Issues

On August 27, 2009, Mr. Shay Assad, then Acting Deputy Under Secretary of Defense (Acquisition and Technology), directed the formation of an interdepartmental subcommittee on contractor business systems, under the Panel on Contracting Integrity. The Panel, established in 2007 in accordance with the requirements of Section 813 of the Fiscal Year 2007 National Defense Authorization Act, is assessing the progress made by the Department of Defense to eliminate areas of vulnerability that allow fraud, waste, and abuse to occur.

Purpose

Chaired by Mr. Brian George, Deputy Director, Defense Procurement and Acquisition Policy (Cost, Pricing, and Finance), Subcommittee 11 is addressing a range of issues related to contractor business systems. Its members include senior representatives from the Defense Contract Audit Agency (DCAA), Defense Contract Management Agency (DCMA), and Army—the key stakeholders responsible for ensuring the adequacy of the contractor business systems that support the Department’s contracting activities in Iraq and Afghanistan.

In a November 2, 2009 statement, Mr. Assad said, "It is essential to the Department and the taxpayer that our Defense contractors’ business systems yield reliable data to enable our contracting officers to negotiate contracts with confidence. These business systems, which include estimating, purchasing, material management, cost accounting standards and accounting systems, among others, are critical in ensuring the Department is paying a fair and reasonable price when it procures supplies and services for the warfighter. It is crucial that the Department's agencies, agents, DCMA, and DCAA, provide and maintain effective oversight of these business systems….We cannot and should not tolerate deficient contractor business systems that yield unreliable data for both the contractor as well as the government."

Focus Areas

Subcommittee 11 has a broad mandate to explore issues related to contractor business systems and the roles and responsibilities of DCAA and DCMA in determining and correcting deficiencies in contractor business systems. Its key focus areas include:

  • Clearly defining the roles and responsibilities of the DCMA contracting officer and DCAA auditor in determining the adequacy of contractor business systems;
  • Assessing the need for standards, such as those already published for Earned Value Management System (EVMS), for the various business systems;
  • Recommending procedures for higher level adjudication of differences between audit recommendations and the DCMA contracting officer determinations of adequacy; and
  • Recommending appropriate contract remedies that DCMA contracting officers can use when a business system has been determined to be deficient.

Subcommittee 11 is reviewing current policy, processes, and practices within the Department regarding the audit, evaluation, and administration of contractor business systems, including contractor internal control systems. In addition, the subcommittee is determining the need for additional contract clauses or regulations for each system, including remedies such as withholds and guidelines for audit frequency. Currently, contractor business systems are not specifically defined in the Federal Acquisition Regulations (FAR) or Defense FAR Supplement (DFARS).

Near-Term Tasks

The Subcommittee already has tangible results, as part of its work in the key focus areas described above. Subcommittee 11 has undertaken two near-term tasks:

  1. Issue Resolution: Complete and provide implementation particulars to the DoD Components with respect to resolving disagreements when a contracting officer does not include significant audit report recommendations from a DCAA auditor.
  2. Compliance Enforcement: Complete and provide implementation particulars (e.g., proposed regulatory changes, Departmental policy memoranda, and contracting officer guidance) to DoD Components with respect to improving the effectiveness of DCMA/DCAA oversight of contractor business systems (i.e., improved compliance enforcement).

The result of the first task was a December 4, 2009 policy memorandum entitled Resolving Contract Audit Recommendations. This memorandum requires contracting officer and auditor communication about significant disagreements and documentation of the basis for disagreement. The memorandum identifies the subsequent optional process for auditors to raise concerns to higher organizational levels.

The ongoing second task has thus far yielded the January 15, 2010 publication of DFARS Case 2009–D038, which announced that DoD is considering a rule to clarify the definition and administration of contractor business systems, to include compliance enforcement mechanisms. This proposed rule requests comments on or before March 16, 2010.

The DPAP point of contact for Subcommittee 11 is Mr. Clyde Wray, Cost, Pricing, and Finance, 703-602-0288, or clyde.wray@osd.mil.

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  • Jan
  • 15
  • 2010

A Contingency Operation has been officially declared by the Secretary of Defense in response to the 7.0-magnitude earthquake that struck the country of Haiti on 12 January 2010. The effective date of the declaration is 13 January 2010. (Joint Staff EXORD 140336Z Jan 10)

Emergency acquisition flexibilities identified in FAR 18.203 and DFARS 218.203, Incidents of national significance, emergency declaration, or major disaster declaration apply. In utilizing the increased thresholds, this authority applies only to humanitarian assistance and disaster relief operations in Haiti and surrounding areas in response to the 12 January Earthquake.

For the purpose of using the Contingency Operation procurement flexibilities enumerated in FAR 18.201, Contingency Operation, and in DFAR 218.201, the FAR 2.101(b) definition of "Contingency Operations" has been met.

National Interest Action codes have been created in FPDS to capture federal procurement actions in support of the disaster relief effort. The information is as follows:

Name: Haiti Earthquake 2010, CODE: Q10H, Start Date: 01/13/2010

Authority for use of these codes applies to humanitarian assistance and disaster relief operations in Haiti and surrounding areas in response to the 12 January Earthquake.4. At this time no change has been made to convenience check threshold or FPDS-NG reporting. If any changes are made an update will be transmitted.

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  • Jan
  • 15
  • 2010

Defense Procurement eBusiness Conference, co-located with the UID Forum will be held February 22-24, 2010 in San Antonio, TX. The Defense Procurement eBusiness Conference will communicate strategic direction in acquisition and procurement, share the latest policy and guidance, and provide practical information to help educate DoD Contracting Professionals. The UID Forum will provide practical guidance to help educate military managers, DoD Contractors and Supplier/Solution Providers about the keys to achieving successful UID implementation.

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  • Jan
  • 5
  • 2010

May 2010 DoD Procurement Conference

DPAP will partner with DAU to host a training conference for the Contracting Community during the week of May 10-14, 2010, in Orlando, FL.

The targeted population for the May 2010 event will be larger than in years past, and will include entry and journey level members of the contracting workforce as well as the traditional senior level attendees.

The 2010 Conference Planning Committee, consisting of representatives from the Components, will begin meeting in September 2009 to develop a draft agenda, to include a Contracting Senior Leader Offsite, and to distribute attendance quotas.

Watch for more information regarding the details of this event.

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This page last updated: January 4, 2017
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