March 31, 2015 Issue # 29 About The Gormley Group | Join Our Mailing List | Our Services Domain Expertise Federal Marketplace Matters Upcoming Events Order Number/Procurement Our Services TGG Strategic Sales Planning About the Gormley Group Join our Mailing List The Gormley Group 1990 M Street, NW Suite 480 Washington, DC 20036 www.gormgroup.com [email protected] The Office of Management and Budget now has the data it needs to reducing its real property Over the last two years since OMB launched its Freeze the Footprint policy, the General Services Administration has led an effort to turn the static Federal Real Property Profile database into a dynamic tool to help agencies make decisions. "When we launched the new inventory under that executive order, we added new data elements to get us much smarter about inventory management. Things like, what is the utilization rate of each building? What is the condition of each building? What is the cost of each building? What is the mission relevance of each building?" said Danny Werfel, the previous OMB controller who launched the Freeze the Footprint initiative, and now is a director with the Boston Consulting Group. 1990 M Street NW, Suite 480, Washington DC, 20036 Read More 202.999.4940 www.gormgroup.com March 31, 2015 Issue # 29 VA FSS CHANGES NOTICE OF CHANGE TO CLAUSE 552.238-74 - REGARDING DISTRIBUTION AND PRICING AGREEMENTS (DAPA) Clause 552.238-74, Industrial Funding Fee and Sales Reporting requires that FSS contractors submit, quarterly, the dollar value (in U.S. dollars and rounded to the nearest whole dollar) of all sales under the contract during the preceding 3-month period, to include any partial month. This process is currently completed online through the VA Sales Reporting System. TGG Hosted Client Strategic Business Planning Meeting To complement our client’s sales objectives, TGG provides Federal Market domain expertise to discuss and develop your business strategy and growth objectives for the Federal Market . TGG Website DPAP Issues Class Deviation on Contractor Records Rear Admiral (RADM) Althea Coetzee, Acting Director of Defense Procurement and Acquisition Policy (DPAP), issued a class deviation that adds a new clause to DoD contracts. The new clause will be added to all contracts awarded prior to December 19, 2017 and valued at more than $100,000 that are performed in the US Central Command Theater of Operations (USCENTCOM). The clause gives the DoD greater access to records of contractors and subcontractors in order to prevent corruption and ensure that funds are not being illegally diverted to criminal organizations. Source: CGP One of the questions we most often receive is "I have a DAPA, do I need to report those sales on my quarterly sales report?" If your firm has a DAPA with the Department of Defense, you will be required to submit IFF under the VA FSS Contract for all 65IB and Service Schedule (621 I, 621 II and 66 III) sales. If your firm has a DAPA with the Department of Defense for any Non-65IB or Service Schedule requirements, you will not report the DAPA sales against your FSS contract unless an order is issued against a VA FSS Contract Number starting with V797P or V797D. Additionally, FSS inclusive sales will apply to all direct and any eligible Agency Prime Vendor sales. For Prime Vendor sales the contract number will be cited in the related chargeback transaction. Additionally, all sales issued against a FSS contract starting with V797P or V797D to agencies other than the VA, state & local governments, and direct-to-patient distribution must be reported. Direct all FSS sales reporting & IFF remittance questions to the VA Sales Desk. To read more about this Change please click here More GSA Schedule Migration Information The Gormley Group spoke with Kim McFall out in Auburn about a GSA Advantage delay I was facing and she indicated that all migrated contracts must be registered with GSA Advantage just like any new offer in order to have access to GSA eBuy. I think a lot of vendors forgot that step and many were calling her about not having access, so the contract must be registered with GSA Vendor Support at the following link: 1990 M Street NW, Suite 480, Washington DC, 20036 202.999.4940 www.gormgroup.com March 31, 2015 Issue # 29 Top 10 Large/Small Contractors on Schedule 70 (Information Technology) in 2014 LARGE CELLCO PARTNERSHIP (DBA: Verizon Wireless) $546,552,295 DELL MARKETING L.P. $524,565,410 INTERNATIONAL BUSINESS MACHINES $519,266,539 ACCENTURE FEDERAL SERVICES LLC $381,559,773 MANDATORY SPENDING IN 2014 INSIGHT PUBLIC SECTOR, INC. $284,358,890 DLT SOLUTIONS, LLC $265,776,600 In FY2014, mandatory spending accounted for nearly 60% of total federal spending and over 12% of GDP. Social Security alone accounted for 24% of federal spending. Medicare and the federal share of Medicaid, the fastest growing components of mandatory spending, together accounted for 26% of federal spending. Therefore, spending on Social Security, Medicare, and Medicaid made up nearly 50% of total federal spending. The composition of mandatory spending has changed significantly over the past 40 years. In 1962, before the creation of Medicare and Medicaid, mandatory spending was less than 30% of all federal spending. At that time, Social Security accounted for about 13% of total federal spending or about half of all mandatory spending. CGI FEDERAL INC. $203,436,973 SRA INTERNATIONAL, INC. $199,035,147 SOFTCHOICE CORPORATION $186,649,452 BOOZ ALLEN HAMILTON INC. $178,450,085 Read More . SMALL MYTHICS, INC. $617,788,496 CARAHSOFT TECHNOLOGY CORPORATION $553,665,321 IMMIXTECHNOLOGY, INC. $249,723,356 EC AMERICA, INC. $169,420,691 ESCGOV, INC. $96,974,016 EXECUTIVE INFORMATION SYSTEMS, L $92,019,463 TERREMARK FEDERAL GROUP, LLC $82,301,788 BART & ASSOCIATES, INC. $65,624,407 FOUR POINTS TECHNOLOGY, L.L.C. $60,459,241 IRON BOW TECHNOLOGIES, LLC $58,870,292 Source: SSQ Data 1990 M Street NW, Suite 480, Washington DC, 20036 202.999.4940 www.gormgroup.com March 31, 2015 Issue # 29 OFPP fixing unintended consequences of 1990s procurement reform The federal government's procurement system is not designed for optimal performance. That was the understatement of the week by Anne Rung, the administrator of the Office of Federal Procurement Policy. Defense Department spending drops $24 billion in 2014 Defense Department spending fell $23.7 billion — or nearly 8 percent — in fiscal 2014 even as civilian agencies saw increases in overall spending. Federal governmentwide contract spending fell $17 billion in fiscal 2014, according to data obtained from the Federal Procurement Data System. Overall spending fell from $462 billion in fiscal 2013 to $445 billion in 2014, according to the data. Contract spending has fallen the last several years — about 17 percent since fiscal 2011 — down from a height of $539 billion. But while overall contract spending fell, most civilian agencies bucked the trend. Spending at the Department of Homeland Security, Health and Human Services Department and NASA all increased in fiscal 2014. The Veterans Affairs Department and the Social Security Administration also saw increases in spending. But Rung, who was speaking at the quarterly President's Management Advisory Board meeting in Washington Friday, wasn't just complaining about the situation that has led to more than 3,300 contracting offices across the world, huge price discrepancies among agencies when buying similar goods and services, and huge duplication across the government. "I think a lot of well-intentioned acquisition reform legislation has had some unintended consequences," Rung said. "At one point, in Reinventing Government, they called for an end to government monopolies and they were talking about different functional areas. But one of the areas they were referring to was the General Services Administration being the sole entity to purchase IT acquisitions. So, they wanted to bring that authority back to the agencies. One of the unintended consequences was that we have this massive proliferation of duplicative contracts across government. So, we now have this model that we have to do something with." Read More Budgets Signal Sequester Cuts Here to Stay WASHINGTON — What to do about sequestration is one issue House and Senate negotiators can skip as they craft a compromise 2016 federal budget blueprint. That's because spending resolutions approved last week by the House and Senate both leave the across-the-board budget cuts in place for defense and domestic programs. Read More Read More 1990 M Street NW, Suite 480, Washington DC, 20036 202.999.4940 www.gormgroup.com March 31, 2015 Issue # 29 84 contracts awarded on rereleased SEWP V After pulling back the awards announced in October to deal with a slew of protests, NASA's Solutions for Enterprise Wide Procurement (SEWP) V contract is back, with 84 companies making it onto the GWAC under the final award, announced Wednesday. The contracts announced include 36 suppliers of computerbased systems (Group A) and 48 for networking, security, video and conferencing (Group D). The Gormley Group 1990 M Street, NW Suite 480 Washington, DC 20036 www.gormgroup.com [email protected] More: Full list of Group A and D awards The SEWP program office pulled back the awards late last year to respond to detailed protests. "We dealt with a few directly, went looking at the other ones and realized we needed to do a clarification," Program Manager Joanne Woytek said in a recent interview with Federal Times. "So we pulled back the awards at that point in time and rather than trying to respond via protest, we are going through an updated selection." The rereleased awards include four more contracts than the original release. "SEWP V contracts streamline the process of providing federal agencies with state-of-the-art tablets, desktops and servers; IT peripherals; network equipment; storage systems; security tools; software products; cloud-based services; video conferencing systems; and other IT and audio-visual products; as well as related services such as installation, training and maintenance," the SEWP program office said in a release Wednesday. The GWAC currently offers the lowest fee of any large IT procurement vehicle, at a fixed 0.39 percent. The contracts have a $20 billion ceiling and a 10-year ordering period with an optional five-year add-on. Source: Federal Times 1990 M Street NW, Suite 480, Washington DC, 20036 202.999.4940 www.gormgroup.com March 31, 2015 Issue # 29 SAM REGISTRATION Upcoming CGP Events April 9 – 7.30 – 11.00 Breakfast Forum on Indirect Contracting with the Federal Government Registration April 28, 2015 CGP Spring Training Conference titled The Business of Government view draft agenda To see more scheduled CGP events visit website A recent press release from FEMA highlights the need to keep your System for Award Management (SAM) record current, complete and accurate: The notice on March 25, 2015 announced that Federal funds for the repair or replacement of damaged facilities related to the State of Emergency declared in New Hampshire due to snowstorms are now available but only to those who are eligible to work with FEMA. In disaster situations, where response is often needed quickly, getting contract compliance elements in line may take longer than situation requires. In their “Doing Business with FEMA” section, they list a current SAM record as the first requirement for ensuring that a Vendor’s capabilities are made available to the agency. Interested contractors can also submit a completed FEMA Profile to the Industry Liaison Support Center. Details on the federal disaster aid programs available under President Obama's disaster declaration issued for the State of New Hampshire are available here: A connected subject, GSA’s Disaster Purchasing Program allows state and local governments to buy supplies and services directly from all GSA Schedules to facilitate recovery from major disaster or facilitate disaster preparation and response. To brush up on the requirements for participating in that program go to: 1990 M Street NW, Suite 480, Washington DC, 20036 202.999.4940 www.gormgroup.com
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