2020 NDAA and Human Capital Management

As per the request in the 2020 National Defense Authorization Act (NDAA), a new report from the National Academy of Public Administration, “Elevating Human Capital: Reframing the U.S. Office of Personnel Management’s Leadership Imperative,”is on target. Government needs to invest continually in improving its human capital management policies and practices. The payoff will be improved agency performance and the gains could be significant.

      Human capital management is more than implementing laws and regulations, and more than policies or practices. It happens every workday and impacts the lives of employees and their families. When employees feel they are disrespected or not valued, they look for new employers. Those who feel locked in, often become disengaged, some even destructive. The factors that influence how employees feel about their work experience include the messages from leaders and interactions with local managers, not the policies announced by the HR office.

      Businesses should be looking to the government as a model. The latest idea on business websites is that when employers emphasize their purpose, it helps with recruiting and engaging top talent. The subject has been discussed at the World Economic Forum and by the Business Roundtable. To state what should be obvious: Agencies were created to serve a societal purpose. The best source to understand the importance of purpose is a 2010 book The Why of Work, by the highly regarded organization consultant, David Ulrich and his psychologist wife, Wendy Ulrich.

      The importance of purpose is clear in the scenes of hospital staff saying goodbye to patients treated successfully for COVID. Their satisfaction is almost palpable. We saw the celebration of the mission crew when Perseverance landed on Mars. The satisfaction from federal accomplishments is frequently displayed in movies and TV shows. The challenge of tackling problems and the anticipated gratification of success contributes to better performance. High performing organizations have employees who embrace the importance of their work. Those organizations celebrate achievements throughout the year. It builds collaboration and esprit de corps, contributing to better performance.

     Government performance also plays a role in recruiting and retaining talent. Careers in government have always attracted a segment of young job seekers but many more would be attracted if agencies were valued by the public for their accomplishments. When agencies are respected for their service to the public, it enhances the way everyone views the organization, including career counselors, professors, and parents. Rebuilding is more than numbers; it is about attracting and engaging top talent.

Author: Patrina Philips

Source: https://www.govexec.com/management/2021/03/business-case-investing-human-capital-management/172791/

GSA has Opportunity to lead Federal Climate Change Initiative.

The federal government is the nation’s largest employer and its largest energy consumer. The U.S. has rejoined the Paris Agreement which aims to reduce global greenhouse gas emissions and limit global warming to below 2 degrees Celsius. President Biden wants the public sector to be an example for environmental sustainability. Due to the building and construction industries accounting for more than a third of energy and process-related carbon dioxide emissions, one of the biggest ways to reduce the nation’s carbon footprint is with real estate. Fortunately for the General Services Administration (GSA), they have a head start.

“Since 2013, GSA has successfully reduced its total inventory by 7 million rentable square feet (RSF), reducing its footprint from 378 million RSF to 371million RSF in 2020.” Stated by an agency spokesperson in an email to Federal News Network. “Over the last 15 years, GSA has made substantial progress improving our buildings’ energy efficiency and space utilization through investments in new and existing facilities, technologies, and operational best practice adoption.” Agencies must submit draft action plans to the new National Climate Task Force and the Federal Chief Sustainability Officer within the next three months. Those plans should describe steps agencies can take to make facilities more resilient to climate change impacts.

The environmental impact of federal real property, as well as government procurement power, are just some components in Biden’s wide-ranging Jan. 27 Executive Order on Tackling the Climate Crisis at Home and Abroad. The EO proposes a carbon pollution-free electricity sector by 2035, and clean and zero-emission vehicles for all government fleets, including the Postal Service. This is notable because 36% of federal energy consumption comes from more than 350,000 buildings, while about 60% comes from vehicles and equipment, according to the Energy Department’s Federal Energy Management Program (FEMP). The EO directs the White House Council on Environmental Quality and the Federal Acquisition Regulatory Council to make sure contractors pay more attention to reducing carbon emissions. 

“Action plans should, among other things, describe the agency’s climate vulnerabilities and describe the agency’s plan to use the power of procurement to increase the energy and water efficiency of United States government installations, buildings and facilities and ensure they are climate-ready. Agencies shall consider the feasibility of using the purchasing power of the federal government to drive innovation and shall seek to increase the federal government’s resilience against supply chain disruptions,” the EO reads. Whatever is left after operating expenses can go to construction, repairs or major renovations of federal buildings – the kinds of projects needed to improve energy efficiency and sustainability. Because the easier fixes, such as more environmentally friendly lighting, are largely done, he said.

GSA, in particular, has reduced its leased footprint by 10.4 million square feet since October 2014, the agency spokesperson said. During his time at PBS, Mathews said their strategy revolved around two things: Reducing total square footage and getting real estate at a better price. To do this, PBS prioritized leasing first and GSA’s overall portfolio second. “We went after leasing first, because when you lease, you have access to private capital through your lease. So, you leverage, with your annual lease payment, significant amounts of private capital to restructure your lease portfolio – the portfolio the federal government consumes in the private market,” he said. “As a result, we’re avoiding over $4 billion in lease costs that – because of the transactions we put in place when we were there, by reducing the size of that lease portfolio. Along with that smaller footprint is less energy consumption.”

Author: Patrina Philips

Source: https://federalnewsnetwork.com/green-buildings/2021/03/building-back-greener-gsa-has-prime-opportunity-to-lead-federal-climate-change-initiative/

Biden’s Made in America: Federal Contracting Outlook

With a new administration comes new policies. Most federal contractors are familiar with this and have been gearing up to ready themselves for whatever these new policies may throw at them. With the “Made in America” executive order issued by President Biden on his fifth day in office, contractors are still wondering what implications this may have on their businesses.

The notion of buying American is nothing new for the country. In fact, this new executive order builds on current laws—the Buy American and Buy America statutes, passed in 1933 and 1982, respectively. These laws have not been updated since 1954 according to a fact-sheet issued by the White House. Looking back, the extent to which the government and its contractors were to give preference to American sourcing has been blurry and has reportedly not been closely followed.

The federal government spends roughly $600 million annually in contracting, so defining these practices related to buying American can have a significant impact on contractors and the country at large. Specifically, the executive order said that within 180 days, the FAR Council should consider: replacing the “component test” (which says that over 50% of a product’s cost must have a domestic origin), increasing the numerical threshold for domestic content requirements for construction materials and end products, and increasing the price preferences for domestic construction materials and end products. “At this point it’s very hard for contractors to predict and make any supply chain adjustments because we just don’t know what this test is going to look like,” said Adelicia Cliffe, partner at the law firm Crowell and Moring.

Biden has also issued executive orders on using federal procurement to advance racial equity and support for underserved communities, tackle the climate crisis and to order a review of the U.S. supply chain. We will continue to monitor these developments.

Author: Paul McVeigh

Source: https://www.govexec.com/management/2021/02/how-bidens-made-america-executive-order-could-impact-federal-contractors/172259/