Navy Contract Spending: 30% Increase Despite COVID-19

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.

Author: Paul McVeigh

Source: https://federalnewsnetwork.com/defense-main/2020/04/navy-contract-spending-jumps-30-in-april-amid-covid-pandemic/

Small Business Association’s Paycheck Protection Program and Benefits

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. 

Author: Prasanna Haresh Patil

Reference: https://chicago.cbslocal.com/2020/04/06/small-business-administrations-paycheck-protection-program-could-be-life-saver-for-some-businesses/

GAO Report: Telecom and Call Center Federal Contracts

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.

Author: Paul McVeigh

Source: https://www.gao.gov/products/GAO-20-291#summary

Essential Federal Contracts During COVID-19 Pandemic

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.

Author: Prasanna Haresh Patil

Reference: https://federalnewsnetwork.com/contracting/2020/04/keeping-the-federal-contracting-community-going/

https://www.natlawreview.com/article/federal-contracts-again-or-again-during-coronavirus-pandemic

Sabre88 Core Values: Work-From-Home

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:

  1. Maintain Regular Hours
  2. Create a Morning Routine
  3. Set Ground Rules With the People in Your Space
  4. Schedule Breaks
  5. Take Breaks in Their Entirety
  6. Leave Home (within CDC guidelines)
  7. Don’t Hesitate to Ask for What You Need
  8. Keep a Dedicated Office Space
  9. Use a VPN

Author: Paul McVeigh

Source:

https://www.pcmag.com/news/get-organized-20-tips-for-working-from-home

Steps to Follow for Federal Contractors to Continue Working During COVID- 19 Pandemic

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.

Author: Prasanna Haresh Patil

Reference: https://www.nationaldefensemagazine.org/articles/2020/3/19/contractor-tips-for-covid19-pandemic

http://www.mondaq.com/unitedstates/CorporateCommercial-Law/907058/COVID-19-Federal-Contractor39s-Survival-Guide

Early FY 2021 Budget – Where is the Money

In February, the White House released an early look at the Fiscal Year 2021 budget. This early look is a great indicator for small business government contracting firms looking to make strategic adjustments. No surprise, the IT industry gets the lion’s share. The figure? $92 Billion. That is a 5% increase.

With the Unites States looking to get ahead of the tech curve in areas like 5G, Cloud Computing, Cyber Security, Artificial Intelligence and Machine Learning, the monetary requirement plays a huge factor. Federal civilian agencies would receive a combined %53.4 billion, while the Defense Department would receive $38.8 billion.

The biggest question for government contracting firms would easily be, “Where is the money?” Agencies seeing a notable increase in IT-specific funding are departments of Veterans Affairs (27%), Energy (18%), State (16%) Health and Human Services (14%), and Education (14%).

On the opposite end, the General Services Administration, Department of Transportation, and Department of Commerce all saw a decrease in IT funding.

Author: Paul McVeigh

Source:

https://about.bgov.com/news/white-house-proposes-92-billion-it-budget-in-fy-2021/

Artificial Intelligence in Federal Agencies

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.

Author: Prasanna Haresh Patil

References: https://gcn.com/articles/2020/03/03/ai-use-cases-federal-agencies.aspx

https://www2.deloitte.com/us/en/insights/industry/public-sector/ai-readiness-in-government.html

https://www.govexec.com/insights/federal-government-ready-ai/

State prepares for Coronavirus: Starting from Federal Government

The West Virginia Department of Health and Human Resources’ Bureau for Public Health is continuing to prepare for the spread of COVID-19 — more commonly known as the coronavirus — as the federal government increases its response to the disease. There are no reported cases or investigations of coronavirus in West Virginia. The bureau said Wednesday the immediate health risk is low, but international outbreaks make it important for officials to prepare.

Gov. Jim Justice ordered the state Department of Health and Human Resources to monitor the outbreak as well as reach out to local, state and federal health officials as necessary. “We are working to ensure our health systems, emergency management agencies, first responders and county health departments are prepared and have the resources they need to respond to localized outbreaks in West Virginia communities,” said Dr. Cathy Slemp, state health officer and bureau commissioner. Officials are developing tools to prepare and respond to localized outbreaks if needed. The U.S. Centers for Disease Control and Prevention on Wednesday disclosed a new COVID-19 case in California which could be the first American case involving the general population.

Author: Prasanna Haresh Patil

References: http://wvmetronews.com/2020/02/26/state-prepares-for-coronavirus-as-federal-government-boosts-efforts/

https://www.washingtonpost.com/us-policy/2020/02/25/coronavirus-government-quarantine/

Federal IT Assessments: Small Business Concerns

TRAs and TRLs

How do federal agencies know when a new technology is mature enough or safe enough to implement? Worse than remaining stagnant with antiquated software can be the disastrous consequences of investing in an immature new tech. For branches of the military and NASA, these risks are well known and have been accounted for throughout the last few decades.

With the continuous rapid increase of technology of late, other federal agencies and program management offices are looking for a solution to the question, “When is technology safe to implement?” That answer has been provided by the Government Accountability Office (GAO) with the release of their “Technology Readiness Assessment (TRA) Guide,” and more recently by the Air Force Research Laboratory who developed a “Technology Readiness Level (TRL) Calculator.”

Using the guide provided by GAO, agencies can generate a report that can help decision makers decide whether or not a prescribed TRL goal has been achieved, or highlight areas of potential risk. These methods may prove to be critical for the success of future projects and missions. They may also prove critical for those government contractors looking to provide tech solutions to federal agencies.

Implications for Small Businesses

It would behoove small business government contracting firms to understand this process which is becoming more commonplace in a better-connected federal marketplace. Previously, cyber-security certifications had been discussed as potential barriers-to-entry for small businesses looking to compete in government contracting, but now the ability for agencies to utilize these new methods of evaluation for technical solutions may prove to be an additional hurdle.

The moral of the story is that the landscape is always changing. To remain competitive, small business contractors have to play to their strengths and use the responsiveness enjoyed by small organizations to get out in front of the growing technical hurdles that are so frequently materializing. Knowledge is power, so small businesses should strive to stay in-the-know and leverage that to win contracts.

Author: Paul McVeigh

Sources:

https://fedtechmagazine.com/article/2020/02/technology-readiness-levels-when-technology-safe-adoption-federal-it-perfcon

https://www.gao.gov/products/gao-20-48g