As technological improvements continue to change the way the
world does business, it is critical that we look ahead to what the future may
hold. To remain competitive in an ever-changing market, government contractors must
adapt, learn, and grow. To this point, The National Association of Contract
Management (NCMA) has recently released a white paper titled, “Preparing for
the Future of Contracting,” that makes some daring predictions.
This white paper outlines key findings that are essential to
the success of government contractors moving forward. First, contractors will
need to become well-versed, even subject matter experts in emerging fields to
adapt to the changing landscape. Some examples given were machine learning,
supply chain systems, and artificial intelligence.
The technology already exists that would allow agencies to
replace jobs requiring repetitive tasks typically performed by humans with
robotic process automation (RPA) and artificial intelligence (AI). For
contractors to be on the right side of this trend, a working knowledge of the
technology and an understanding of how to implement it would be paramount to continuing
to win contracts in administrative fields. Acquisition professionals would be able to
utilize this technology in the future as well, allowing them to free themselves
from monotonous tasks and concentrate on more strategic issues.
Kraig Conrad, CEO of The National Association of Contract
Management (NCMA), argues that considering the recent COVID-19 crisis, it is
going to more important than ever to leverage the latest technology to improve
response time and react to immediate government needs. Things like innovation,
business acumen, data analysis, market supplier and supply chain intelligence
are extremely valuable in times of crisis. The government will look to improve
upon all of these areas in the wake of COVID-19.
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The General Services Administration’s 8(a) STARS II program
has been one of the most popular governmentwide acquisition contracts (GWAC) in
history. So much so, that for the first time since the GWAC has been around, it
hit its $15 billion ceiling.
Other notable GWACs for reference would be Alliant at $50
billion, Networx at $20 billion, and Veterans Technology Services (VETS) GWAC
at $5 billion. Note of said contract vehicles have hit or even come close to
reaching their respective ceilings.
What makes the 8(a) STARS II GWAC’s milestone so significant
is that it reached its $15 billion ceiling 16 months before the end of the
contract, which is set to expire August 30, 2021. While the popularity may seem
like an overall positive, it can also have negative implications for those
small businesses which credit high percentages of their earnings to STARS II.
Should an 8(a) small business seek to acquire the follow-on to one if its
contracts, for example, it would be ineligible if the contracting office
released it via the 8(a)STARS II GWAC.
With this in mind, there are a number of avenues that may be
taken by the GSA, and some that small businesses should consider. First, 8(a)
small businesses should seek out other contract vehicles with which to obtain
8(a) contracts. Should STARS II not up its ceiling, 8(a) companies can convince
their customers to procure follow-ons through these alternate contract
vehicles.
The GSA may also increase the ceiling by $5-7 billion. “GSA
is exploring its options regarding the 8(a) STARS II GWAC; however, at this
time, there is no guarantee of additional contract value being made available.
In the interim, agencies should contact GSA regarding short term options such
as VETS and the GSA Schedule,” said Bill Zielinski, the assistant commissioner
for the Office of Information Technology Category. “GSA intends to issue the
solicitation for 8(a) STARS III in fiscal 2020. GSA has developed an aggressive
solicitation and evaluation timeline to award 8(a) STARS III as soon as
possible.”
While 8(a) STARS III may be a beacon of hope, it is a light
at the end of a long tunnel. Despite releasing the draft solicitation last summer,
little movement has been seen on the contractor end.
https://sabre88.com/wp-content/uploads/2020/08/image-4.png159330Nakira Whiteheadhttps://sabre88.com/wp-content/uploads/2020/07/sabre88_bc_logo_trans-Copy.pngNakira Whitehead2020-05-22 11:48:572021-03-23 10:53:588(a) STARS II Hits Ceiling: Implications for Small Business Contractors
Artificial intelligence stands to revolutionize government agencies — as long as they understand how to procure, implement and use it, according to a new report.
The Administrative Conference of the United States
commissioned the report, titled “Government by Algorithm: Artificial
Intelligence in Federal Administrative Agencies,” from researchers at Stanford
and New York Universities. Released in February, it found that 45% of federal
agencies have experimented with AI and related machine learning tools and that
those agencies are already improving operations in myriad ways, such as
monitoring risks to public health and safety and enforcing regulations on
environmental protection.
“The growing sophistication of and interest in artificial
intelligence (AI) and machine learning (ML) is among the most important
contextual changes for federal agencies during the past few decades,” the
report stated.
The Department of Justice’s Office of Justice Programs had 12
AI use cases — the most of the responding agencies. The Securities and
Exchange Commission and NASA follow with 10 and 9, respectively. In total, the
researchers documented 157 use cases across 64 agencies after studying 142
federal departments, agencies and subagencies.
More broadly, the top three policy areas where AI is used
were law enforcement, health and financial regulation. In terms of government
tasks, regulatory research, analysis and monitoring clocked in at about 80 use
cases, while enforcement had about 55, and public services and engagement had
about 35.
The report also found that agencies were at different stages
of AI and ML use. Fifty-three use cases, or 33%, were fully deployed, whereas
roughly 60 were in the planning phase and about 45 were piloting or have
partially deployed. More than half — 53% — of the AI and ML use cases were
developed in-house, while roughly a third were built by commercial contractors
and about 13% involved collaboration with non-commercial entities such as an
academic lab.
One agency that uses AI for enforcement is SEC, which has a
suite of algorithmic tools to identify violators of securities laws. For
example, to detect fraud in accounting and financial reporting, the agency
developed the Corporate Issuer Risk Assessment, which has a dashboard of about
200 metrics that can find anomalies in the financial reporting of more than
7,000 corporate issuers of securities. An ML tool identifies filers who might
be engaging in suspicious activities by using historical data to predict
possible misconduct.
Two other tools — the Advanced Relational Trading
Enforcement Metrics Investigation System and the Abnormal Trading and Link
Analysis System — look for suspicious trading. ARTEMIS hunts for potential
serial insider trading offenders by using an electronic database of more than 6
billion electronic equities and options trading records to study patterns and
relationships among traders. ATLAS analyzes for first-time offenders.
Lastly, the Form ADV Fraud Predictor helps predict which
financial services professionals who manage more than $25 million in assets
annually may be violating federal securities laws. The tool parses Form ADVs,
which those professionals must submit to the SEC annually. Ultimately, it flags
people as high, medium or low priority for further SEC investigation.
Despite the ways these tools help SEC employees, there are
challenges. For instance, many of the documents powering the tools are not in
machine-readable formats, the agency struggles to find accurate ground truth
for algorithm training data, and it must stay up-to-date on what constitutes
wrongdoing.
The report identified a common lack of sophistication across
the use cases. Researchers ranked only 12% as highly sophisticated. “This is
concerning because agencies will find it harder to realize gains in accuracy
and efficiency with less sophisticated tools,” the report stated. “This result
also underscores AI’s potential to widen, not narrow, the public-private
technology gap.”
More understanding about how agencies use and acquire AI and
ML tools is necessary to further adoption, the report said.
“Rapid developments in AI have the potential to reduce the
cost of core governance functions, improve the quality of decisions, and
unleash the power of administrative data, thereby making government performance
more efficient and effective,” the report stated. “Agencies that use AI to
realize these gains will also confront important questions about the proper
design of algorithms and user interfaces, the respective scope of human and
machine decision-making, the boundaries between public actions and private
contracting, their own capacity to learn over time using AI, and whether the
use of AI is even permitted. These are important issues for public debate and
academic inquiry.”
https://sabre88.com/wp-content/uploads/2020/05/image-3.png213378Nakira Whiteheadhttps://sabre88.com/wp-content/uploads/2020/07/sabre88_bc_logo_trans-Copy.pngNakira Whitehead2020-05-15 11:59:112021-03-23 10:57:44Artificial Intelligence and Federal Agencies
The General Services Administrations inspector general
issued its annual review this month of 130 pre-award audits of new or renewed
schedule contracts. The report outlines several adjustments to price and
discounts that amount to an alarming $1.1 billion in potential savings that the
agency has missed out on.
“By not effectively using all of the negotiation tools
available, contracting officers are failing to leverage the government’s
purchasing power,” the report states. “While we recognize that negotiations may
not always yield the full amount of cost savings identified in our pre-award
audit reports, FAS’ general disregard of pre-award audit results wasted our
audit resources and forfeited opportunities to save over $900 million in
taxpayer dollars.”
The report is a huge hit to the GSA, as a potential loss of
this magnitude could cause a great deal of trouble for those responsible. This
$1.1 billion figure may not be entirely accurate. These pre-award audits arise
from an analysis of a single data point, and does not take negotiations and
other administrative costs into account.
Experts maintain that, while pre-award audits are helpful,
they may not accurately depict the actual price paid by the agency. To make a
more accurate report, the inspector general’s audits would need to wait to
review post-award information. While this may result in more accurate
information, the delay could wind up allowing agencies to overpay for years
before the issue is identified.
GSA and the IG have been working together to make
improvements to schedule contracts. A GSA official said the Federal Acquisition
Service and the IG formed a working group in 2018 to improve the value of
pre-award audits. The working group helped develop new policies, established
performance metrics that are reviewed quarterly, which led to a 22% improvement
in audit timeliness, and more than 2,100 hours of training for the acquisition
workforce.
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For many across the country, across the world for that
matter, the effects of COVID-19 have had a significant impact on everyday
businesses. For most, this impact is negative, costing tens of millions of
Americans their jobs and forcing small businesses to hang on for dear life. Within
Federal contracting, contractors have had the fortunate of performing the needs
required by the country maintain the status quo in the ability to perform daily
task, showing improved results from previous years.
Even with trillions of dollars being allocated for stimulus
and small business relief, the Navy reported a 30% increase in contract
spending as compared to last years figures. As of Tuesday, April 28, 2020, the
Department of the Navy obligated $96.9 billion towards contracts in April,
compared to $74.7 billion in April of 2019, even though more than 95% of its
contracting workforce is working remotely. During the same month, those
acquisition professionals also increased their use of distance learning for
ongoing workforce development by more than 65%.
This increase is undoubtedly a result of the Navy’s efforts to
combat this virus, spending more dollars-on-contract to ensure our country’s
safety and supply chain efficiency. The increase also shows that the Navy has
seen research and development efforts, as well as acquisition efficiencies pay
off. “I’m seeing some remarkable efficiencies,” said James Geurts, the
assistant secretary of the Navy for research, development and acquisition, on a
conference call Tuesday. “I think a lot of that is getting rid of layers of
bureaucracy that weren’t needed. Some of it is also creating better
partnerships with industry so that we can leverage cost and pricing data we
already have, and we don’t have to send out an RFP and get a proposal back just
to confirm that data. And some of it is just a continued sense of urgency and
mission focus.”
The Navy’s efforts, along with the contractors who continue
to fulfill critical contract obligations, are paying off in fighting this
unprecedented virus. It is encouraging that we are seeing an increase in
spending, especially since it illuminates improvements in reaction time and efficiency,
areas that are integral in keeping our country safe.
The Paycheck Protection Program is a
forgivable loan designed to provide a direct incentive for small businesses to
keep their workers on the payroll. The Small Business Association will forgive
loans if used for expenses related to payroll, rent, mortgage interest, or
utilities.
Starting April 10th, independent contractors and
self-employed individuals can apply. Officials are encouraging business owners
to apply as quickly as possible because there is a funding cap. The Paycheck
Protection Program will be available through June 30, 2020. You can apply
through any existing SBA 7(a) lender or through any federally insured
depository institution, federally insured credit union, and Farm Credit System
institution that is participating.
https://sabre88.com/wp-content/uploads/2020/07/sabre88_bc_logo_trans-Copy.png00Nakira Whiteheadhttps://sabre88.com/wp-content/uploads/2020/07/sabre88_bc_logo_trans-Copy.pngNakira Whitehead2020-04-24 11:59:472021-03-23 11:44:39Small Business Association’s Paycheck Protection Program and Benefits
In April 2020, the U.S. Government Accountability Office
(GAO) Published a report which focused Telecommunications and Call Center
federal contracts. The reason being that agencies spend billions on telecom and
call center work every year. Majority of these services are provided by
contractors, thus prompting the GAO to dig a bit deeper to highlight important
key factors of this industry, such as amount spent and by whom, data security
requirements, and even the use of foreign equipment.
As per the GAO report, The Federal Government obligated over
$30 billion for telecommunications contracts and almost $4 billion for call
center contracts, from fiscal years 2014 through 2018. On average for the
5-year period, telecommunications and call center obligations were a nominal
portion of total federal spending—accounting for 1.2 percent and less than 0.2
percent, respectively. Defense agency obligations accounted for the majority of
federal telecommunications spending to support a range of information
capabilities across the full spectrum of military operations. The Department of
Health and Human Services accounted for the majority of call center obligations
to support customer inquiries about Medicare and the health insurance
marketplace, among other services.
The GAO also found that many agencies are concerned with
security as it pertains to call center and telecom work. Contractors must
follow various requirements to protect the systems and the privacy of personal
data, which includes implementing controls that limit or detect inappropriate
access to data, and not using equipment from certain foreign manufacturers that
could include harmful hardware or software and pose national security risks. In
addition, most contracts also required that work be conducted in the United
States or by U.S. citizens.
In our current global climate, cyber security is paramount.
This means that agencies must take substantial precautions when hiring a
contractor to perform government work. Watch for more strict requirements to be
implemented in the future regarding personnel, equipment, cyber security, and
even procedure.
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Virtually all states and locales have
policies on what are “essential” services during the pandemic. So does the
federal government — basically, healthcare, grocery stores, pharmacies, transportation,
etc. In the case of contracts with federal agencies, Department of Defense
contracts are considered essential, but those federal contracts and others may
not also meet the test of all states and locales for being essential.
Federal guidance on essential services is
general in nature, and Office of Management and Budget guidance to agencies on
essential contract services also lacks specifics. The Department of Homeland
Security’s Cybersecurity and Infrastructure Security Agency (CISA) has provided more detail on essential industries, such as the defense
industrial base, but its guidance is not binding on states.
State guidance on essential services is
varied. What can federal government contractors do to keep open?
Federal contractors should inquire from
their contracting officer (CO) in writing whether certain of their services are
federally essential or not. With a confirming letter from the CO, contractors’
offices and employees with copies of the CO’s letter on hand will be able to
show local officials that they are essential and can remain open, as long as
local officials are reasonable and agreeable.
Facility and work site closures also may
result from the virus. Implied or express government “stop work” orders can
have an effect on contractors. CO “directives” can lead to excusable
and/or compensable delays. The contractor cannot be defaulted by
government-caused delays, and may be entitled to an extended schedule
adjustment and equitable adjustment if the contract costs increase. However, if
an order is not directed toward a particular contract but to the public in
general, that is a sovereign act not entitling a contractor to an equitable
adjustment, only extra time. This ventures into new territory. Preserve
your rights with a notice of change letter to the CO.
Finally, beware of the “lessons learned”
after other crises, such as Hurricane Katrina. At the outset, emergency
government services (food service, equipment, personal protective equipment,
housing, construction, etc.) were scrambled for, but down the road inspectors
general noted contractor billing errors that resulted in the freezing of
payments and false claims issues. Even in emergencies, do not overlook
government billing details and the keeping of records and logs of performance.
Keep that bad ghost of Christmas future away, while doing the real work.
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As the world adjusts standard routines and a large majority
of businesses transition to working from home, we at Sabre88 have done our best
to uphold and incorporate our core values into our new normal. Changing the
setting of business has its challenges, but it appears that it certainly has
its opportunities, as well. This can be a time to strengthen teams, learn new
things, sharpen problem-solving skills, and discover new ways of communicating.
Sabre88’s core values are the following: Teamwork,
Accountability, Communication,
Customer Service, Community Service ,and Technology. As a
company, we have had the opportunity to create new ways of doing things, all
while remaining true to these core values.
Teamwork and communication have played a large role in continuing
to operate successfully as we work from home. This means maintaining regular
hours, creating a morning routine, taking time to meet virtually to maintain a
team environment. It is important to keep communication strong during times of
separation. Equally important is staying connected with team members and
continuing to draw from the strength of our diverse pool of skills.
Accountability comes from keeping these communications
consistent and open. The team relies on each other to perform and must know
that each member is accountable for their work. When a unit operates in a
manner such that each member is accountable to each other, great work can be
done and the result is great customer service and a stronger team.
Customer service is now directly related to our
utilization of technology. Making sure to use a VPN on network you don’t
control ensures the safety of the information that customers and clients expect
to be protected. Technology also drives customer service by allowing quick,
effective collaboration in real-time, allowing for smooth communication and
decision making to solve every potential problem that may arise. The use of
technology also allows for innovation and is presents opportunity for business
development.
Finally, community service is what we are able to engage
in by remaining productive in our homes during this unprecedented time. By
staying home and adhering to the guidelines provided by our leaders, we ensure
that we are serving the community as best we can by helping to flatten the
curve, as it is appropriately put.
We do wish all our customers and clients health and
safety, and we at Sabre88 will continue to prove Precise. Swift. Solutions as
we always have.
The following is a list of tips and best practices for maintaining
productivity:
We’ve heard a lot about COVID-19 (Coronavirus) lately, and the mountain of misinformation that has followed in its wake. We’re struggling to figure out what is fact and what is fiction. But we probably can lend a hand in understanding the impact of the current health emergency on federal contracts.
Accordingly, we offer the
following guidelines to help you prepare for any potential COVID-19 impact on
your federal business (and to give you all something to read while you wait in
line for your hand sanitizer, surgical masks, and latex gloves).
Communicate early. If you
hold contracts that could be impacted by coronavirus, in terms of performance,
schedule, or cost, reach out to your CO sooner rather than later. Among other
things, explore mutually acceptable ways to handle issues relating to the virus,
e.g., employees at Government facilities unable to report to work, shortages of
staff delaying performance, inability to access Government facilities, among
other potential issues that may derive from the impact of the virus.
Provide timely notice. Be
sure to notify your CO promptly, and memorialize it in writing, if you believe
your performance will be impacted by the virus. Make sure your personnel know
to bring such situations to your attention as soon as they know.
Document everything. You should
document any increased costs or delays attributable to the virus, and more
generally, document how the virus impacts your performance.
Consider trying to recover or
offset your increased costs. If you experience increased costs on your
ongoing contracts, consider requesting a contract modification to cover those
costs. If you are a commercial items contractor selling at fixed prices or
rates, consider requesting an Economic Price Adjustment under your contract’s
EPA clause. The standard EPA clause gives a contracting officer discretion to
approve unscheduled increases due to surprising national/international events.
Review your sick-leave policy.
Many contractors, like many companies, give their employees only limited sick
leave. At the same time, having employees attend work because they are out of
sick-leave creates significant risk – whether those workers work at a
Government site or a company site. Contractors should consider how they plan to
handle sick employees who are unwilling to stay home, or employees who need to
stay home to care for a loved one.
Equip your employees to work
remotely. Contractors should consider providing technology that allows
employees to work from home, a laptop with VPN access to your systems, if
remote work is permitted under the applicable contract. If the contract does
not permit remote work – and some federal contracts do not – then consider
reaching out to the CO to discuss modifying the contract. In either case,
communicate with your employees now. Give them an action plan. A simple
reminder to bring their laptop home with them every day (if allowed) could go a
long way.
Consider your cybersecurity
obligations if you have personnel working from home. Remember, your
federal contracts bring with them a number of cybersecurity rules. For example,
your federal contracts may incorporate data security provisions requiring that
sensitive information be maintained on secure systems with specific
protections.
Be prepared for novel customer
requests. Like contractors, federal agencies are struggling to adapt to the
realities of a Corona-fueled purchasing and performance landscape. As federal
agencies contemplate sending their own employees to work at home, they are
going to face a host of questions not contemplated by their current contracts.
Understand GSA’s Cooperative
Purchasing Program. If you are a GSA Schedule contractor, keep in mind that
state, local, territorial, and tribal government are authorized to purchase
through the MAS program when the Government declares a Public Health Emergency.
The Government declared a PHE at the end of January. Accordingly, state, local,
territorial, and tribal governments that previously were not permitted to make
Schedule purchases now may be permitted to make such purchases
through GSA’s Cooperative Purchasing Program.
Look around. Companies are
being proactive. United Airlines just sent an email to its customers outlining
the steps the company is taking to keep them safe and keep them flying. Among
other things, United now is wiping armrests and tray-tables with sanitizing
wipes between flights. As these things become the norm, equivalent steps,
tailored to the given industry, will be expected of other companies as well. No
one wants to be implicated in an outbreak caused by a failure to adhere to
industry “best practices.”
In addition to the foregoing,
federal contractors, like all companies, will be well served by developing a
detailed plan of action. Think through the various ways coronavirus could
impact performance, schedule, and/or cost, and develop a concrete mitigation
plan. The earlier you get started on that, the better off you’ll be down the
road.
Obviously, we’re dealing here
with a “live event,” and the facts continue to change. The steps
outlined above, however, should keep you ahead of the curve at least
contractually. Of course, these are not bible steps a company has to follow.
Every contract, every company is dealing with the pandemic situation
differently and considering their plan of actions.
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