Chesapeake Bay Chapter Meeting

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Chesapeake Bay Chapter Meeting Guest Speaker Ms.
Deidre A. Lee Director of Defense Procurement and
Acquisition Policy April 20, 2005
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Questions?
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Q What is the status of the goal to reduce the
size of DFARS by 40 percent? A To meet the
40 reduction goal, the DARS initiated 90 DFARS
cases to implement the Transformation Teams
recommendations.   We have published final rules
for a third of the transformation cases and the
remaining cases are in the regulatory process.  
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• Q What is PGI and how does it effect
  Contracting Professionals?
• A PGI is a DFARS companion resource containing
• Mandatory and non-mandatory internal DoD
  procedures,
• Non-mandatory guidance and
• Training and supplemental information used at the
  discretion of the contracting officer.
• PGI coverage may be accessed through links in the
  DFARS or
• directly at http//www.acq.osd.mil/dpap/dars/pgi/i
  ndex.htm
•  
• DFARS PGI will not only provide a rapid method of
  disseminating non-regulatory material to
  contracting officers and the entire acquisition
  community, it will also serve as a real-time
  training tool by making relevant information
  available on your topic of interest. DFARS PGI is
  new and will be evolving in the months ahead.
  Well move to simpler language, an easy-to-follow
  format and follow with new tools for searching
  and retrieving current and past information on
  FAR and DFARS requirements.
•  
• The DFARS remains the source for regulation,
  implementation of laws as well as DoD-wide
  contracting policies, authorities and
  delegations. In other words, DFARS will answer
  the questions, What is the policy? and "What
  are the rules?" DFARS PGI will connect the
  acquisition community to the available training,
  background, procedures and guidance and answer
  the questions, How can I execute the policy?
  and Why does this policy exist?

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Q During the 1990s, based upon DoD
encouragement, several military buying
commands were utilizing Price-Based (PBA)
procedures with requisite waivers of TINA
requirements under "exceptional circumstances". 
However, Section 817 of the FY03 National Defense
Authorization Act effectively added a
key criteria for justifying exceptional
circumstance waivers.  This added criteria has
placed an extremely restrictive barrier on waiver
of TINA requirements, which is a prerequisite for
PBA.  What is DoD's outlook on PBA now that TINA
waivers are much more difficult to justify? 
What's the long-term outlook on this issue?A
DOD/DPAP submitted a legislative proposal to
change section 817 that would have made it easier
to perform TINA waivers. Congress rejected that
proposal. With the Section 817 legislation,
which added key criteria for exceptional
circumstances, there will be considerably less
use of PBAs.
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Q What is your perspective on SPS road ahead
and when will the other major buying commands be
required to use SPS for Major Weapon Systems
acquisition? A  o       SPS is the
designated system for contract writing. o      
Both Mr. Wynne and I believe that SPS provides
the common capabilities to write and manage
contracts throughout the DoD. o       The road
ahead has been defined and has been clearly
communicated to the communities in a memo signed
by Mr. Wynne in August 2004. o       It states
the Inc 2 should be deployed now to all Military
Department and Defense Agency user communities.
o       It also identifies that SPS Increment 3
is currently in development and all Military
Departments and Defense Agencies should be using
this release by October 1, 2006. This includes
the Major Weapon Systems communities. o      
It is the intent for all legacy contract writing
systems to be retired as users migrate to SPS
Increment 3 a new web-based tool with much
greater capability than the current SPS version.
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Q SPS road ahead continued
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Example 1 The latest version, SPS 4.2, does not
allow the use of CLINs/SLINs consistent with
DFARS 204.7104-1. There are 2 of the 9 options
cited which are not possible in SPS. Will there
be a change to the DFARS recognizing the
limitation of the contracting writing software or
will there be an update to SPS providing for the
various CLIN/SLIN types?A   o       The two
examples in the DFARS, 3 and 6, might be able
to be accommodated through the style sheet, but
changes to the program might not be
practicalo       Your SPS JRB members are
assessing options before determining if DFARS
changes are necessary.  
Examples of SPS Challenges
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Examples of SPS Challenges
Example 2 Recent discussion suggests that SPS
is not able to track changes in the conformed
copy of the contract nor identify the source of
the changes. Will this capability be available
in future versions of SPS? A  o       The track
changes capability is a requirement that the DoD
has included in the requirements for SPS Inc 3.
o       Conformed information will be available
through reports/auditing functionality in SPS
Increment 3.
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Q What is the Services Acquisition Advisory
Panel and how can this panel help us in the
awarding and administration of contracts? A
AAP - GENERAL        Authorized Section 1423
SARA of 2003        Charter Review
Legislation Policies        Topic Areas
o       Commercial Practiceso      
Performance-Based Contracting o      
Interagency/Government wide Contracting       
Membership 14 from Govt Industry       
Product Report with Recommendations by Feb 1,
2006 AAP MONTHLY MEETINGS        March
30tho       Report of 5 Working Groups        
Commercial Practices         Performance-Based
Contracting         Interagency
Contracting         Small Business
(cross-cutting)         Federal Workforce
(cross-cutting)o       Industry Presentations
Proctor Gamble Everest Group        April
19tho       Industry Presentationso      
Industry Group Professional Services
Council        AAP Website
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Q Acquisition Advisory Panel Continued
A Continued HOW HELP IN AWARD/ADMIN OF
CONTRACTS?        No specific answer
yet        Listening to stakeholders       
Need to narrow down issues         Limited
time        Balance interests of
stakeholders        Acquisition Community
Important stakeholder The Acquisition Advisory
Panel was authorized by Section 1423 of the
Services Acquisition Reform Act of 2003. The
Panels charter is to review and recommend
changes to acquisition laws and regulations and
government-wide policies with a view toward
effective and appropriate use of commercial
practices, performance-based contracting, and
interagency and Government-wide contracting. I
am one of 14 Panel members chosen by OMB from
both industry and government for their expertise
in acquisition law and policy. We are tasked
with submitting a report with our findings by
February 1st to Congress and OFPP.  The Panel
meets at least once a month for a Public Hearing.
March 30th, we had our first substantive public
Panel meeting where each of five working groups
reported out on its progress to-date Commercial
Practices Performance-Based Contracting
Interagency Contracting and our two
cross-cutting working groups, Small Business and
the Federal Workforce. The Panel also heard
presentations from Proctor Gamble and the
Everest Group on their take on how industry
outsources for its IT requirements.
 Yesterday, the Panel met and heard public
testimony from representatives from four
companies, from an industry association - the
Professional Services Council, and from the
Director of Acquisition and Sourcing at GAO.
They all provided very informative and thoughtful
presentations that touched upon the full range of
topics being addressed by the Panel and its
working groups. I urge you all to take a look at
their briefings and other pertinent and
interesting Panel information posted on the
Panels website at http//www.acqnet.gov/aap/.
 But, you all want to know how the Panels
activities will impact you and help you award and
administer contracts - I cant answer that
question with specifics for you just yet. The
Panel is examining the way the Government and the
commercial sector procure services to meet
requirements. We want to hear from, listen to,
the full range of stakeholders and get their
sense of the issues what is working and whats
not. The working groups will then be narrowing
the issues down to those we think we can hit some
home runs with - in the very limited time we have
- that balance the interests of all our
stakeholders. I assure you that you - the
acquisition community represent an immensely
important stakeholder whose interests are being
very much considered.
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Q SeaPort-e is becoming the Navy Virtual SYSCOM
vehicle of choice for Contractor Support
Services. What are the benefits and challenges
from DoDs perspective? A Seaport-e is
o       NAVSEAs enterprise vehicle to acquire
serviceso       A Multiple Award Contract (MAC)
vehicle, with 151 prime contractors competing for
individual task orderso       National
contracts, competed in one of seven geographic
zones based on place of performanceo       Scope
of work includes all engineering, technical, and
programmatic support service requirements
o       Including Award Terms, the period of
performance of the base contract is 15
yearso       On-line Portal enables electronic
requirement determination, solicitation, source
selection, and task order administration,  The
benefits of Seaport-e include Common
acquisition processes and policy across the
NavyLeveraged buying powerOne contract per
company Effective small business
participation We are currently working with the
challenges associated withConnecting the
SeaPort-e system to our other e-Business
applications, like SPS and Wide Area Workflow
(WAWF) for consistent business processesDetermini
ng if the long-term capability is needed
throughout the DoD and establishing a strategy
for obtaining that capability.
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Q Management and Oversight Process for the
Acquisition of Services (MOPAS) requires 3
documents (Memo to file, DF and acquisition
strategy paper) to justify using non-DoD
contracts (e.g. GSA Schedules) for requirements
in excess of 100,000. In light of acquisition
streamlining, this documentation requirement
seems to be a step backward. Using GSA Schedules
for standard supplies and services was suppose to
be convenient. Did DoD intend for the Military
Services to adopt this strict an interpretation
of its guidance, and if so, any plan to revisit
this policy in the near future?A Each of the
military departments interpreted the policy memo
on the Proper Use of Non-DoD Contracts
differently. The Navy implementation does
require very specific paperwork documentation and
recording of data but does not require a DF.
In fact, acquisitions under GSA Schedules and
Franchise Fund authority do not require a DF.
Actions under the Economy Act do require a DF.
Our policy memo established the minimum
standards and provided guidelines for the
MILDEPS. Each of the MILDEPS requested we be
less specific in our policy and allow them some
flexibility in implementation. We honored their
request. For example, one of the requirements
which was deleted from our first draft of the
policy, after review and comment by the MILDEPS,
was a requirement that each action over the
simplified acquisition threshold (100,000) be
reviewed and approved by a DoD contracting
officer.  We are receiving comments and
practical experience on the policy. My office
plans to revisit the guidance and make necessary
changes this summer. We are also looking at
revising DoD Instruction 4000.19 (Interservice
and Intragovernmental Support).  The Navy POC
on this policy is Robert (Bob) Johnson
(703-693-2936) or Pete Chase (703-693-4076). The
DoD POC on this policy is Mike Canales
(703-695-8571).
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Q What is the status of the Berry Amendment?
Are there any upcoming changes to the
regulations? A DFARS Case 2004-D035
implements in the DFARS two memoranda relating to
the Berry Amendment.  1.      DEPSECDEF memo of
May 1, 2001, specifies that USD(ATL), and the
Secretaries of the Army, Navy, and Air Force may
not delegate the authority to make domestic
nonavailability determinations under the Berry
Amendment.  This memo also requires an analysis
of alternatives that would not require a domestic
nonavailability determination and written
determination by the requiring activity why such
alternatives are unacceptable. 2.      When the
domestic nonavailability determination is for the
procurement of titanium or a product containing
titanium, the USD(ATL) memo of October 22, 2004,
requires notification to congressional defense
committees 10 days prior to award of a contract
that relies on such a determination.   In
addition, we have proposed some legislative
changes to the Berry Amendment (10 U.S.C. 2533a)
for FY 06.  1.      Exception for
civil-military integration. We want to promote
civil-military integration by eliminating the
need for separate production lines for commercial
and military products. The exception would
permit the commingling of foreign and domestic
specialty metals in the manufacture of the
Departments weapon systems and their components,
at the prime and subcontract level. If the
suppliers rely on this exception, they must
purchase an equivalent amount of domestically
melted specialty metal before the item is
delivered to the Department and after the date of
the award of the contract. We anticipate
periodic DCMA audits of the suppliers
compliance. 2.      We are proposing that the
restrictions of the Berry Amendment not apply to
covered items that contain only a small amount of
textile components or materials that are not
produced in the US. We have defined a small
amount as (1) 10 percent of the total price of
the covered items, or (2) the total cost of all
non-domestically produced textile components and
materials included in the procurement of the
covered items is not greater than the simplified
acquisition threshold, whichever is less.
Suppliers have identified recurring situations
where items cannot be produced for the Department
without obtaining a time consuming domestic
non-availability determination for a very small
quantity of a textile component or material of
either foreign origin or unknown origin. This
is designed to address this and other similar
concerns. We are proposing a change to the law
that will permit an establishment located outside
the United States to purchase perishable foods
for its personnel without application of these
requirements. The law as currently written will
not allow DoD to procure food that is not grown,
processed, reused or produced in the US. The
change we are proposing will give our overseas
personnel access to quality locally produced
perishable food items at good prices.
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Q When will the rules be published for Unique
Identification (UID) Radio Frequency
Identification (RFID) be published? A We will
publish a final rule on UID, on Friday, April 22,
2005.We will publish a proposed rule on RFID, on
Thursday, April 21, 2005. The proposed rule will
request public comments, which are due by June
20, 2005.
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Q The position description for the GS-1102
Series is currently Contract Specialist or
Contracting Officer. Has the Department of
Defense considered renaming this job series to
better reflect the business advisory services and
expertise provided by this group of acquisition
professionals?A The Department of Defense
acquisition community has already taken steps to
position the 1102 occupational series as
acquisition professionals with business advisory
expertise by changing the Position Category
Description (PCD) to better reflect this business
acumen. In addition, formal certification
training changes have been made which not only
includes new course names emphasizing smart
business and mission support but also training
content which reinforces the business advisor
role.The 1102 occupational series is not unique
to the DoD but is used Federal Government-wide.
Therefore, any change to the 1102 occupational
series would require a change across the Federal
Government, which must be coordinated with other
federal agencies and the Office of Personnel
Management (OPM). DoD will have the authority
in implementing the NSPS to establish its own
occupational series definitions and position
titles, so the Department will have the
opportunity to revise existing or establish new
position titles as NSPS is implemented. However,
there may be some resistance from some other
career fields and federal agencies that may feel
that we are pre-empting them (e.g., 1101 is
general business and industry career field used
for a wide variety of jobs such as business
manager, industrial specialist, etc) or other
unintended consequences, but we will explore
positioning the 1102 occupational series to
better align with business advisory functions.
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Q The National Security Personnel System will
to into effect this July. Please summarize the
advantages and disadvantages of the National
Security Personnel System (NSPS). A NSPS will
modernize a 50 year old, outdated civil service
system, and allow us to attract, recruit, retain,
compensate, reward, and manage our employees,
with a focus on performance, flexibility, and
accountability.  NSPS Highlights/Advantages
Simplified pay banding structure, allowing
flexibility in assigning work Pay increases
based on performance, rather than longevity A
performance management system that requires
supervisors to set clear expectations (linked to
DoDs goals and objectives) and employees to be
accountable Streamlined and more responsive
hiring processes More efficient, faster
procedures for addressing disciplinary and
performance problems, while protecting employee
due process rights A labor relations system
that recognizes our national security mission and
the need to act swiftly to execute that mission,
while preserving collective bargaining rights of
employees NSPS Challenges        Cultural.
With NSPS, we'll have a Total Force perspective
one which will facilitate DoD civilians gaining
an equal footing with their military and
contractor counterparts in furthering DoD mission
accomplishment.        Communication. A
pay-for-performance system mandates frequent and
honest communication and performance feedback
among managers, supervisors, and employees.
        Accountability. The flexibilities
proposed in the NSPS regulations bring with them
an increased need for accountability.
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Q The former version of the Deskbook was
available on CD-ROM, including the FAR and DFARS.
This was very a helpful resource to use when
working away from the office. The current
Deskbook, now called ATL Knowledge Sharing
System, is accessible via hyperlink
(http//akss.dau.mil) which requires access to
the internet. Does DoD ATL plan on providing
CD-ROM copies of the current version of
Deskbook?A CD-ROM copies of the current
version of Deskbook, now called ATL Knowledge
Sharing System (AKSS) have been provided to
registered users for the past two years.  The
AKSS is published in CD-ROM format twice a year,
or when a major change in policy occurs.  The
latest version (January 2005) has just been
shipped to those registered users that subscribe
to the CD-ROM mailing list.  New subscribers can
register on-line at http//akss.dau.mil (click on
ORDER NOW button on lower left of page) to
receive this current version that also includes
the new Defense Acquisition Guidebook (DAG).
19
Q NAVAIR provides contractors access to the
Navy Air Force Interface (NAFI) where contract
awards are posted. The current practice allows
contractors, granted access, to view all
contracts posted to NAFI, even their competitors.
What policy implications are there as a result
of this practice? What potential competitive
protests may occur?Ao       Freedom of
Information Act laws apply to contract
information o       A vendors may claim
competitive harm, but must prove any harm though
the legal process o       NAFI will be
integrated with the Electronic Documents Access
(EDA) system so that the Department has a single,
consolidated repository for contracts and other
documents critical to the business process.
o       In April 2006, the open view function
will be disabled. Vendors will only be able to
view documents under their registered Cage Code
or DUNS.During this integration, security
access, user rights and document availability are
being reviewed so that the best business
practices of each system are incorporated into
the newly combined system.
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• Q The Defense Acquisition Universitys (DAU)
  strategic plan is aligned with and in support of
  the strategic goals and business objectives of
  the DoD leadership. This is being achieved, in a
  large part, by web based training and revamping
  of previously provided classroom training. Gone
  are the days when contracting personnel spent 4
  weeks in class learning the FAR and DFAR. Now
  contracting personnel gain knowledge through on
  line learning modules, in class training and on
  the job training.
• What is your sense of the contracting workforce
  regarding the strengths and short comings of
  DoDs contracting certification program?
• A The contracting certification program has
  undergone a major revamping. Over the past two
  years, DAU has completed a new Level III course
  (CON 353 which replaced CON 301 and 333). DAU
  also changed Level I (we now have CON 100, 110,
  111, 112, and 120). They are also planning to
  change Level II all of these changes were done
  to strengthen the critical and strategic thinking
  of our contracting workforce so they can be
  better business advisors to their customers.
  Being able to be creative, know your customer,
  what they spend, which type of contract vehicle
  to use, are skills needed to help the workforce
  into the 21st century. As the Contracting
  Functional Advisor, I approve curriculum changes
  and I believe we are on a track to strengthen our
  workforce. We always welcome inputs and each
  service has a representative on our Contracting
  FIPT where you can comment on proposed changes.
  Check out the www.dau.mil website for further
  info.

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Q Does the contracting workforce believe that
the DAU contracting certification track bridges
the education and experience gaps or are there
concerns about their knowledge levels as they
move along the contracting career track? A I
hope our contracting workforce understands that
they have a personal responsibility to supplement
their DAU certification courses and other course
available thru the DAU website with a personal
commitment to continuous learning to enhance
their knowledge levels to meet mission
challenges. As people rotate to other jobs (and
I encourage this and have personally done this
throughout my career to get a broad knowledge of
procurement and acquisition), they need to ensure
that they have the proper tools to do the jobs
(discuss this with their supervisors during the
IDP process to plan accordingly).
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Q Is the DAU curriculum and method of delivery
providing the tools and knowledge necessary to
meet the goal(s) of DoD ATL? A The DAU
curriculum is one step toward meeting ATL goals
it requires the right education, experience,
and training to be certified. But to be an
effective ATL employee to meet the goals we have
starting with the Presidents Management Agenda,
GPRA, thru the Seven ATL goals, my strategic
plan, your organizations plan, you need to have
a strong sense of commitment to meet and exceed
customer expectations. This sense of
professionalism reflects on ethics where we
have had a huge impact by the recent Boeing
situation and now find ourselves in a time where
it is crucial for each of us to demonstrate
professional ethics every day from the small
things like returning phone calls to issuing
timely and sensible contracts (not requiring
proposals in a week for example!). You also need
to have the right attitude very important
wanting to do a great job every day as a
strategic business advisor. Getting back to your
initial question, the DAU curriculum and other
tools they offer are a great start to help you
meet ATL goals but it goes way beyond that into
your own personal responsibility as well. I do
suggest that you take time to review the DAU
website at www.dau.mil which has a massive amount
of tools to help you from Continuous learning
Modules to the DOD Deskbook where you can ask a
professor for advice, etc. Q Are interns and
mid level contracting personnel adequately
prepared through DAU courses for higher level
contracting positions and to assume senior
leadership responsibilities? A To assume senior
leadership responsibilities, you need to go
beyond taking DAU courses to enhance your skills.
DAU is a excellent start and also a place to
return to often for virtual courses, the DAU
alumni association, and other things I previously
mentioned. But, again, it starts with you and
your eagerness to self improve and stay up with
current technical, political, and strategic
thinking across DOD and beyond. There are
various leadership programs like the Defense
Leadership and Management Program (DLAMP) that
provide opportunities for senior service schools,
rotational assignments to broaden your viewpoints
and share best practices, leadership courses, and
a structured mentoring program to help you thru
your path to leadership positions. Volunteering
for high visibility projects is also another idea
to help gain skills and networking for the
future. But, simply taking courses at DAU will
not get you to these positions.
23
Q FAR 15.404-1 (a) 7 refers to a contract
pricing reference guide at website
http//www.acq.osd.mil/dpap/contractpricing/index.
htm. The Department of Defense Armed Services
Pricing Manual of 1986 is an exceptional tool
that provides insight into cost and price
analysis not provided in the previously
referenced website. Is it possible for your
office to have this guide scanned and added to
the website? A DOD tried to incorporate all
of the pertinent information from the Defense
Armed Services Pricing Manual (ASPM) into the
Contract Pricing Reference Guide. If an
individual feels as though there is missing
information please email Mr. Dave Capitano at
david.capitano_at_osd.mil. We do not plan to have
the ASPM scanned and put on the DPAP website.
24
Q FAR 6.302-4 says that full and open
competition is not necessary when there is a
Letter of Offer and Acceptance (LOA). Paragraph
(c) specifically states that DoD is NOT required
to write a Justification and Approval. Then
DFARS 206.302-4 states that a JA is NOT required
IF the HCA prepares a document that describes the
LOA. Apparently the streamlining that the FAR
provides is rescinded by the DFARS (must have a
DF signed by HCA, that describes the LOA).
Therefore, as a contract specialist, I have the
choice of writing a JA for PCO signature OR
writing a DF for HCA signature. How does this
regulatory requirement add value to the
acquisition process or support streamlining? A
The questioner states that when, in accordance
with a Letter of Offer and Acceptance, full and
open competition will not be performed, the
contract specialist has a choice of writing a
Justification and Approval (JA)  for PCO
signature (per the FAR) or writing a
Determination and Findings for HCA signature (per
the DFARS).  The questioner wonders how this
DFARS requirement supports streamlining.    
First, we need to clarify that the level of
approval for the JA is dependent on the dollar
amount of the acquisition.  For a large enough
JA, they would have to go to the SAE.  In that
instance, it may be more efficient to do a DF
since approval would be at a lower level, i.e.,
the HCA.  On the other hand, for smaller
procurements, it probably does make sense to do a
JA signed by the contracting officer or one
level above, instead of a DF to be signed by the
HCA.   Second, besides the level of approval,
the contracting specialist should consider the
time needed to prepare the document.  The DF
should be easier to prepare since a paragraph may
suffice.    Third, the DFARS requirement to
do either a JA or a DF SIGNED BY THE HCA is
pursuant to statute (10 USC 2304(f)(2)(E).  The
law would have to be changed before the
Department could gain more discretion.