Posts tagged "Government procurement"
Sep 28, 2018

WASHINGTON, DC—Federal procurement and contracting is huge, and this spending drives the 10 jurisdictions of the Greater Washington, DC office market. Indeed, this market is the largest recipient of contract dollars in the nation at $83.4 billion, followed by California at $57.9 billion. And, the national contract spending total was $470.8 billion in 2017.

In this exclusive, Robert Hartley, director of research for the Greater Washington, DC metro area of Colliers International, shared insights into how this federal spending tips the scales for a positive or negative outcome of economic growth.

“When we look at the revenue/R&D spending last year, the federal government procured $116 billion in R&D, more than Amazon, Google, Apple, Facebook, GlaxoSmithKline and Monsanto combined,” Hartley tells “It’s an absolutely massive amount of spending and where these dollars flow really drives the regional economy. When you think of what Amazon has done for Seattle and what Apple has done for Cupertino, the impact to those areas is great. The DC region is the largest recipient of federal dollars of any area in the United States, and it is an enormous driver of our economy.”

Hartley points out that Northern Virginia is the largest beneficiary of federal dollars in this region. It received $41.8 billion — half the region’s obligated contract dollars — while 54.7% or $22.9 billion was received from the Department of Defense.

“When we start looking at nodes of government contractors and their impact on commercial real estate in our region, most of their business is done in Northern Virginia,” Hartley tells “A lot of it is Defense, which involves high end, advanced types of work: cybersecurity, command and control, aerospace, weapons systems, national security, intelligence, aerospace and medical research. This work is tied to some of most sophisticated research in the US.”  Read Full Article

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Feb 6, 2018

Scott AFB, Illinois, Feb. 05, 2018 (GLOBE NEWSWIRE) --

The United States Transportation Command (USTRANSCOM) currently seeks a contractor to complete transportation and storage services for privately-owned vehicles. This lengthy procurement began back in January of 2017 and is soon coming to a close.

This contract will have a two-year base period with the option to continue on with the contract until 2024. The current provider of services for this requirement is International Auto Logistics LLC (DUNS 078597284). They are a transportation company who has been awarded over $687 million in government contracts since 2014.

The provider on the new contract will be responsible for shipping multiple vehicles worldwide and storing vehicles for an average of 2-3 years. All requirements and modifications that have been posted in regards to this solicitation (Solicitation ID: HTC711-17-Z-R003) can be found on third-party, US Federal Contractor Registration’s Advanced Procurement Portal.  Reference Article

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Sep 19, 2017

Peanut butter. Bottled water. Hygiene kits. Diesel fuel. Surgical supplies.

These are just some of the supplies and services the U.S. government has purchased through the nearly $614.3 million in contracts it has awarded since hurricanes Harvey and Irma pummeled Texas and Florida, according to the Federal Procurement Data System, which compiles government-wide contracts as of Thursday.

And that pot of money is expected to grow exponentially.

Among the recipients of these contracts are big players, including medical device maker Medtronic, aerospace and defense company General Dynamics, as well as smaller outfits, like family-owned Foster Fuels, a provider of emergency fuel.

As the government continues to assess damages, more companies can expect to get awarded contracts for office supplies, dumpsters, portable toilets and other essentials needed to help clean up and rebuild homes and infrastructure. Read Full Article.


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May 19, 2017

WASHINGTON, May 18, 2017 /PRNewswire-USNewswire/ -- The U.S. Small Business Administration announced today that the federal government reached its small business federal contracting goal for the fourth consecutive year, awarding 24.34 percent in federal contract dollars to small businesses totaling $99.96 billion, an increase of over $9 billion from the previous year. 

"I am pleased to report that for the fourth year in a row, the federal government has exceeded its small business contracting goal," Administrator Linda McMahon said.  "It is a win-win for federal agencies to get small business contracts into the hands of the innovative small business owners that create jobs in their communities and help to fuel the nation's economy." Read Full Article.




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Oct 14, 2017
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Apr 24, 2017

Dive Brief:

  • President Donald Trump on Tuesday signed an executive order on "Buy American and Hire American" policies in an effort to increase the domestic share of labor and products used in federal projects.
  • The new order calls upon Commerce Secretary Wilbur Ross to investigate current government procurement policies at federal agencies, with an eye toward disabling poor monitoring, weak enforcement and ineffective compliance efforts, Politico reported.
  • In addition, the administration will assess guest worker programs and the cost-benefits of free trade provisions, allowing for national treatment of foreign contracts compared to the reciprocal access.  Read Full Article Here.


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Apr 13, 2017

MICHIGAN -- U.S. Senator Gary Peters today visited MessageMakers in Lansing to announce that he will be introducing bipartisan legislation with Senator Susan Collins (R-ME) to help protect small businesses from falling victim to fraud when they register to procure federal contracts.

The Procurement Fraud Prevention Act would require small businesses to be notified that free assistance is available for help in procuring government contracts through federal programs, including Procurement Technical Assistance Centers (PTACs), the Small Business Administration (SBA), and the Minority Business Development Agency (MBDA). Many business owners are unaware these resources exist and fall victim to scams that mislead them into paying high sums of money for contract procurement assistance. Read Full Reference Article


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Mar 9, 2017

The Senate has passed a Congressional Review Act resolution disapproving the Aug. 25, 2016, “Fair Pay and Safe Workplaces” federal acquisition regulation.

Approving the CRA on March 7, the Senate now sends it for President Trump’s signature in order to officially roll back the final rule, which has not yet gone into effect because of a Texas federal court’s preliminary injunction. In addition, the CRA prevents future administrations from promulgating a similar rule.

“The Statement of Administration Policy on the resolution stated the Fair Pay and Safe Workplaces regulation would ‘bog down federal procurement with unnecessary and burdensome processes,’ ” said David Berteau, president and CEO of the Professional Services Council. “PSC agrees and urges President Trump to sign the resolution expeditiously to remove this significant overhang from the acquisition process.” Full Article


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Feb 3, 2017

In December 2016, Jones Day issued " Government Contracts Ramifications of the Trump Election," a Commentary in which we discussed several likely impacts of the Trump Administration in the government contracts arena. Specifically, we discussed that the new Administration would:

  • Seek repeal of numerous Executive Orders affecting government contractors.
  • Reject some Obama Administration procurement policies, such as: the preference for fixed-price type contracts; the preference for lowest-price technically acceptable ("LPTA") evaluation schemes; and the preference against outsourcing government jobs to private companies.
  • Embrace Commercial Item contracting.
  • Increase government spending for defense, cybersecurity, infrastructure, and immigration-related activities.
  • Decrease spending by many agencies, including the Department of Education, Environmental Protection Agency, and Internal Revenue Service.
  • Focus on compliance issues such as rooting out fraud, waste, and abuse, and ensuring compliance with the Buy American Act and Trade Agreements Act.
  • Withdraw from, or renegotiate America's participation in, certain trade relationships, which could affect companies' supply chains.
  • Decrease the federal workforce, which could result in understaffing and undertraining within the acquisition workforce.
  • Appoint the members of the FAR Council, including the Office of Federal Procurement Policy ("OFPP") Administrator, Secretary of Defense, Administrator of National Aeronautics and Space Administration, and the Administrator of General Services Administration. Read Full Article.


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Oct 9, 2014

Sure, details in an inspector general’s report painted a pretty sordid story of alleged contract fraud and planned intimidation tactics to ensure FedBid Inc. held on tight to its government dollars. Still, most procurement experts guess that it will generally be business as usual for the Vienna-based company.
What arguably raised the most eyebrows about the Veterans Affairs Department's IG findings, which were first reported by Federal News Radio last week, were details of how FedBid executives allegedly planned to pressure Jan Frye, deputy assistant secretary of the VA’s office of Acquisition and Logistics, after he barred the use of the company’s reverse auction services.
But those details won’t likely be enough to suspend or debar the contractor from federal contracting.
“Tough to make a black and white case here, despite the report,” said Larry Allen, president of Allen Federal Business Partners and former president of another industry group, the Coalition for Government Procurement. “There are other remedies, like canceling contracts, fines. Most IG reports don't lead to suspensions or debarments, but other penalties." Read full article.

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Aug 26, 2014

A growing number of agencies no longer believe prices under the General Services Administration schedules program are "fair and reasonable."

Along with the Defense Department, NASA quietly issued a memo in March that requires its contracting officers to do additional research to ensure GSA schedule prices are the best value for the government. Industry sources say other agency memos could follow from the likes of the departments of Health and Human Services, Homeland Security and Energy.

And nearly five months after the Defense Department's Dick Ginman, director for procurement and acquisition policy (DPAP), created quite a stir by changing almost two decades of precedent around GSA schedule prices, Tom Sharpe, the commissioner of the Federal Acquisition Service, finally responded publicly to these major changes.
"I support what Dick Ginman has done in terms of telling his contracting workforce to go ahead and apply techniques to get the best price, value and other things important to the taxpayers when they raise orders or otherwise contract — that means getting competition and that means negotiating prices," Sharpe said in an interview with Federal News Radio. "I think where Dick was at, and I agree with him, is we didn't know how often contracting officers were receiving discounts. If you have any type of large volume at the order level, you should in fact be competing orders and negotiating discounts. The schedules were set up to enable that."
Sharpe said by standardizing part numbers and descriptions on the schedules, GSA will use the data to make decisions about how much price variability in the schedules make sense, and agencies can use the data to make better buying decisions. He said GSA also plans to propose a rule to require schedule contractors to provide prices paid data and all demographics around it.
Sharpe said FAS will put that data in a tool so buyers can use it to help them shape how they should price that order.
"I support the agencies getting the best prices they can," he said. "I'm in the process at FAS of setting the conditions, particularly on the multiple award schedule, such that possibly those deviations would no longer be needed, and I'll defer to those customers."
Despite Sharpe's support of DoD, and presumably NASA too, industry experts aren't happy with this growing trend. Several sources say DoD, and now NASA, aren't solving a problem with the schedules, but rather not addressing a problem with the training of contracting officers. Read Full Article.



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Aug 26, 2014

A little over two weeks ago GSA awarded the Federal Strategic Sourcing Initiative (FSSI) Office Supply 3 (OS3) Indefinite-Quantity-Indefinite Delivery (IDIQ) contracts—the third generation FSSI for office supplies. These new OS3 IDIQ contracts duplicate the current GSA Schedule 75 for office supplies—so much so that the OS3 solicitation used GSA Schedule 75 pricing as a benchmark. Moreover, for those GSA Schedule 75 contractors who now have OS3 contracts—the OS3 contract terms require pricing consistency across both vehicles, essentially incorporating by reference the operative GSA Schedule 75 contract terms!
As a result of this effort, GSA and the firms competing OS3 together spent millions of bid and proposal dollars for a duplicative contract vehicle. Time and money could have been saved through the competitive establishment of BPAs under the GSA Schedule 75. More importantly, task order competitions using the GSA Schedule 75 would have leveraged individual agency requirements in a cost effective and efficient manner.  Read full article.

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Jul 24, 2014

conference is free and open to business leaders
BREVARD COUNTY • MELBOURNE, FLORIDA – Congressman Bill Posey will host a Federal Contracting Conference at Florida Tech’s Denius Student Center in Melbourne August 4 - 5.
The event is a chance for government contractors to have one-on-one meetings with procurement representatives from Atlanta and Central Florida to explore new contracting opportunities. Read Full Article.

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Apr 3, 2013

According to a report published March 28, the Defense Department held fewer competitions for contracts in FY12 than in FY08, declining in total by 5.5 percent during the four-year span. The majority of the non-competitive contract awards were tagged as having only a single company able to do the work, justifying a sole-source award.
In FY12, the DOD obligated $359 billion through contracts and task orders, of which $205.3 billion, or 57%, went to competitive awards. In 2008, DOD obligated 62.6 % of its money through the competitive process, the Government Accountability Office (GAO) found in its analysis of spending data.
The 2012 competition rate varied widely across the services.. The Air Force had the lowest competition rate at 37.1%. The Defense Logistics Agency had the highest rate at 83.3%.

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Dec 18, 2012

If there was ever any question about the course correction the federal contracting market has been going through over the past three years, a new survey from Grant Thornton puts it all to rest.

Government contractors say they are making less money than at any time in the last 18 years, including 56 percent of the respondents revealing they made less than 5 percent profit off their government contracts in 2012.
Grant Thornton's 18th annual study of the government contractor industry details the impact of the changing federal procurement environment.
"I think we are seeing, probably, the government is spending less money on contracts, and that's being reflected in the revenues and the companies are beginning to diversify," said Lou Crenshaw, who leads Grant Thornton's aerospace and defense industry market and is a retired Navy vice admiral. "This year, for instance, less companies received work from the federal government as an overall percentage of their revenue. So we are seeing a move of the companies to the commercial sector."
Crenshaw, who presented the preliminary results of the survey at a luncheon sponsored by AFFIRM in Washington Friday, said vendors overall saw a 9 percent drop in revenue and a 16 percent drop for those working with DoD last year.
Additionally, 38 percent of the respondents said they saw decreased revenues — a 9 percent increase over last year — while 35 percent saw increases, a 15 percent decline over 2011.

Not only is revenue down, but profits are down too. Grant Thornton found the percentage of vendors making less than 5 percent profit or no profit grew in 2012 by 31 percent over 2011.

Federal procurement spending down $20 billion. Read Full Article.


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Oct 12, 2012
Government and contractors must demand affordable, but innovative solutions.
When I hear "acceptable," I think adequate, good enough, not great but okay. Who among us would choose an acceptable surgeon? Fly on an acceptable plane? So I sort of cringe each time I read or hear about the low price/technically acceptable (LPTA) procurement evaluation criteria.
No one disagrees that the government - and, more importantly, the taxpayer - needs affordable solutions. We also need innovative solutions that enable service delivery and mission fulfillment, that stand the test of time, and that drive return on the investment. Should we, as taxpayers -- and, in this discussion, as service providers in this market -- invest in and provide solutions deemed acceptable?
Acceptable really is the antithesis of innovative. LPTA is a hold-the-nose response to the economic climate. It doesn't challenge government or the service provider community to do anything other than define, expect and deliver adequate work -- and we need and deserve a lot more than adequate.
Exceptional solutions and services don't just address today's needs in an OK manner; they position for the future, they conserve resources both fiscal and human, and they get to the right answer quickly. Why shouldn't we demand exceptional - of ourselves and our government?
Because we think it's too expensive? Mediocrity is what's expensive. If the goal is acceptable, where is the incentive to define and provide anything beyond that which works fairly well and might last a while?
For those of us who serve the federal government, we can and should clear a bar higher than acceptable. I don’t think any of us wants to claim bragging rights for mediocrity. Technology is our lifeblood; we are equipped to design and deliver technically exceptional services and solutions that also are appropriately priced, even low-priced.  Read Full Article.


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Sep 21, 2011

Companies must make a realistic assessment of your chances to WIN a contract. It is important to make the bid/no bid decision early so time is not wasted. The decision should be made before or immediately following the release of the RFP.

When analyzing the probabilities, ask well do you know the customer? Does the customer know you? Chances are, if you don't know the customer and vice a versa, you should not bid. Agencies must KNOW you in order to TRUST you are going to deliver. Their reputation is also at stake.

• You know and have pre-sold the customer.
• You know the contract history and have information on your chances of successfully competing for the contract (competitive pricing, requirements and/or FOIA information)
• The incumbent has a marginal or poor past performance record.
• You have conducted a site survey and understand the requirements
• Your capabilities meet or exceed the requirements outlined in the RFP. (Teaming relationships help with providing a full service solution)

NO BID if:
• You have NO prior knowledge of the RFP prior to its' release on
• The only information you have is contained in the RFP with no market intelligence or research of the agency needs..
• The requirements are beyond your scope of capabilities and you have no identified teaming partners to include with your technical response.
• There is an incumbent contractor who has continued to provide good or exceptional services. Most (not all) incumbents re-win their contracts if they have maintained a good performance record and relationship with the customer. You shouldn't bid unless you know the customer is unhappy or you have special knowledge of the procurement.
• If you don't KNOW then NO

GovTip: Spend time, resources and money doing your homework in order to make the right decision. No one likes to lose...time, money or business!  Need help?


Feb 15, 2018
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