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Emerging Trends in Procurement and What’s New in NCMA

Emerging Trends in Procurement and What’s New in NCMA. Neal J. Couture, CPCM Executive Director National Contract Management Association. The Acquisition Workforce Has Changed. Years of downsizing (1990’s) Human capital strategies have not kept up with evolving demand

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Emerging Trends in Procurement and What’s New in NCMA

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  1. Emerging Trends in Procurement andWhat’s New in NCMA Neal J. Couture, CPCM Executive Director National Contract Management Association

  2. The Acquisition Workforce Has Changed • Years of downsizing (1990’s) • Human capital strategies have not kept up with evolving demand • Different set of expectations, e.g. business advisor • Evolving gap in replacing the retiring professionals • Inadequate investment in training

  3. The Nature of What We Buy Has Changed • Offloading simple transactions • Larger, more encompassing services • Complex IT, communications, and weapons systems • Accelerated fielding to serve the war fighter • Emphasis on logistical support

  4. AALPS AVCATT BATES ACTF ADLER C-5 AWACS C-17 C-130 AFATDS A2C2S ATACMS ACS APKWS BSM BFT CBS F/A- 22 BCS3 BSTF ASAS Blackhawk ADOCS AMDWS APACHE CBRNRS TRAINING ACTF AVCATT CBS IEWTPT SECOMPI SOLDIER-CATT TACSIM WARSIM FIOP C2PC LOGISTICS AALPS C-5 C-17 C-130 MILES XXI PEGASYS SE-CORE GIG C2 ADOCS ADSSI AFATDS AMDWS A2C2S ASAS BCS3 BFT C2PC DMS-A DTSS FAAD-C3 FBCB2 GCCS-A IDM IMETS JC2 TAIS PAFCS MCS MIP AIR DEFENSE ATACMS MEADS SLAMRAMM SHORAD JLENS LLAPI MOB/SUR STEPS MOUT-OIS CHINOOK MANEUVER APACHE APKWS JCM DMS-A IBS IEWTPT DTSS LFC2IS Engineer Vehicle MAGIS FAAD-C31 MCTIS FBCB2 MOUT-OIS LOGISTICS BSTF CLOE PLS MSD FIREFINDER (Q37) MOB/SURV BSM BLACKHAWK CBRNRS CHINOOK Engineer vehicle HMEE REBS MONGOOSE GBS INTEL ACS JTAGS TES UAV-CL IV-b GCSS-A Command and Control FIOP GIG LFC2IS SIMACET TBMCS TCO TELEPORTS GCCS-A FIRE SUPPORT ADLER FIREFINDER-Q37 GMLRS HIMARS PROFILER PHOENIX MLRS GMLRS FIRE SUPPORT BATES F/A-22 NFCS TSV INTEL AWACS IBS MAGIS MCTIS MTS NGATS PKI MILES XXI HIMARS MTS HMEE NFCS IDM JCM IMETS JC2 NGATS JLENS JTAGS PATRIOT LLAPI PEGASYS MCS TES SLAMRAMM SHORAD Profiler Mongoose PAFCS MSD MEADS SIMACET Soldier System MIP UAV-CL IV -b PHOENIX MLRS REBS PLS TAIS SOLDIER-CATT SE-CORE TCO WARSIM TSV TBMCS TACSIM SECOMPI Internal Interfaces ExternalSystems and Interfaces Future Combat System (FCS) AMPS/JMPS AAFARS CAMEL DCGS-A CHIMS FMTV FIREFINDER (Q36) NETWORK ADSI BVTC CLOE DCTS GPS JTRS1 JTRS5 JWARN LFED MC4 NCES PKI STEPS TELEPORTS WIN-T Logistics AAFARS CAMEL FMTV HEMTT HMMWV HMMWV M1114 HIPPO LHS FUEL FARM LWP MAINTENANCE TRUCK/FRS PLST TEP TC-AIMS II SOLDIER HSTAMIDS LLDR MK VII RADIAC SET Soldier to FCS CID Soldier to Soldier CID MGV ACSW CED FCS–Non FCS CID HTI-FLIR LIGHTWEIGHT120MM cannon (Pending) MFCS MK-44 PROPHET JCAD JSLSCAD JBPDS JBSDS C2 AMPS/JMPS Sentinel FRS HEMTT MANEUVER LAND WARRIOR SOLDIER SYSTEM HMMWV M1114 LETHALITY ACSW AIRBURST MUNITION ACSW KE MUNITION ACSW TRAINING MUNITION CKEM Electronic Time Fuse EXCALIBUR MACS MOFA NON-LETHAL 155mm PGMM Training Unique Ammo MK-44 AMMO 30 mm AIRBURST MK-44 AMMO 30 mm KE MK-44 AMMO 40 mm AIRBURST MK-44 AMMO 40 mm KE MRM/ERM HMMWV HIPPO UAV CL IV ASTAMIDS / EO/IR Tactical SIGINT PAYLOAD UAV –SAR/GMTI LHS FUEL FARM FIRE SUPPORT FIREFINDER (Q36) IMS NLOS-LS UGV ARV(L) JAVELIN MULE GSTAMIDS INTEL DCGS-A CHIMS TRAINING ATIA CCTT CTIA DLS OneSAF OneTESS Land Warrior LWP TC-AIMS II TEP PLST Sentinel

  5. The Working Conditions Have Changed • Compelling urgency – everything is accelerated in fight against terrorism • Doing business in the battle space • Deployment of personnel leaves home force shorthanded • Unprecedented level of support needed for hurricane Katrina response • Constant threat of oversight and second-guessing decisions • High media attention

  6. The Acquisition Rules Have Changed • Years of acquisition reform (1990’s) • Commercial items and complex services • Larger task orders with less transparency • Organization conflicts of interests • Interagency contracting • More outsourcing (competitive sourcing) • Expanded socio-economic programs • Buy American

  7. The Supply Base Has Changed • Industrial base consolidation • Partnerships and teaming • Global competition has increased • Strategic sourcing • More eBusiness • More competition at 2nd and 3rd tier • Increased OCI challenges

  8. This All Adds Up To Risk! • There is more work, it is more complex, and it must be acquired faster than ever • Workforce downsizing, expert class retiring, while expectations and oversight increases • Rules are more flexible, actions are less transparent

  9. 1. The Federal acquisition workforce remains a major challenge. • Shortage of skilled labor is not unique to our profession, industries or employers. • Cannot replace ‘brain drain’ fast enough. • Workload will remain. • Training funds get cut routinely. • Alternative workforce solutions required. • Eliminate barriers to hiring external candidates. • Eliminate barriers to re-hiring annuitants. • Increase use of alternative work arrangements and compensation plans. • Increased telework.

  10. 2. The political pressures on the Federal procurement system will increase short term. • Mission will not be reduced soon. • Replacing war equipment and materials. • Aging systems (refueling tankers, etc.) • Insatiable appetite for improved warfighting technologies. • Dozens of contracting oversight bills in committees. • Increased attention on blended or multi-sector workforce. • Attention on GSA Administrator, SBA effectiveness, NASA IG, DHS acquisition organization and DoD systems acquisitions.

  11. 3. Financial pressures will force discretionary budget reductions beginning in next five years. • The Fiscal Wake-Up Tour being conducted by the Comptroller General. • We spend less of our budget on defense in 2006 than in 1986 or 1966. • Discretionary spending is down from 67% in 1966 to 38% in 2006. • Budget deficits of $928 billion in last two years. • Rising entitlement (health care) costs is the main cause. “Saving Our Future Requires Tough Choices Today” GAO-07-739CG April 4, 2007

  12. 4. Regulatory changes likely: • Reduce number of contracts awarded non-competitively. • Eliminate practice of Lead Systems Integrator (LSI). • Increase use of fixed-price contracts. • Increase small business contracting goals. • Restrictions on contracting with entities in tax default. • Guidance on use of award fees. • Emphasis on using hybrid contracts containing multiple incentive types. • Restrictions on outsourcing, new requirements to in-source.

  13. S.680 Accountability in Contracting Acton Task Order Contracts • require task or delivery order contract awards that are anticipated to exceed the simplified acquisition threshold to be made on a competitive basis providing notice to all contractors offering goods or services under a multiple award contract, with specified exceptions; • notice requirements on sole source orders in excess of such threshold that are placed against multiple award contracts or blanket purchase agreements; • require a statement of work for a task and delivery order valued over $5 million to specify the basis for selection; • require agencies to provide offerors not selected for such an order a post-award debriefing; • authorize protests of such orders valued over $5 million; • include as a condition for use of noncompetitive contract procedures the public disclosure of justification and approval documents; and • limit the length of specified noncompetitive contracts for property or services available from only one source.

  14. S.680 Accountability in Contracting Actother issues • a requirement for each agency to develop a plan for minimizing the use of cost-reimbursement contracts • the issuance of guidance on the use of tiered evaluations of offers for contracts and for task or delivery orders under contracts. • the debarment of contractors that are serious threats to national security. • limitations on the use of subcontractors or tiers of subcontractor. • Workforce provisions include new SES position at OFPP for workforce, industry exchange, fellowships, interns, training programs.

  15. Strategic InitiativeIncrease Professional Advocacy • Monitor, analyze, communicate and train on domestic and international developments that may have an impact on the practice of contract management or the people and organizations that practice contract management. • Pending and adopted legislation and regulation. • Workforce developments • Other conditions affecting the profession • Publish white papers that explain, describe and clarify issues of importance. • Provide information to key stakeholders to improve understanding of public procurement. • Develop a public relations communications strategy.

  16. Strategic InitiativeCreate the Next Generation of Contract Management Professionals • Recruit students members. • More than 500 undergraduate student members. • Charter student chapters. • Cal Poly Pomona, Bowie State, and Christopher Newport • Standard CM Curriculum • MacFarlan research program – papers due 12/31/07! • Contract Management Leadership Development Program (CMLDP) • First class of 34 students graduated in April 2007 • Second class of 24 students started June 2007.

  17. Upcoming Publications

  18. Upcoming Education Programs

  19. Upcoming Conferences

  20. The Value of NCMA Certification • Results of NCMA’s 2005 Salary Survey (over 2,200 respondents) • $75,000 average salary with no certification • $85,000 average salary with CFCM • $100,000 average salary with CPCM • $77,600 BS/BA degree and no certification • $85,500 BS/BA degree and CFCM • $95,800 BS/BA degree and CPCM • $92,700 MA/MS/MBA degree and no certification • $108,000 MA/MS/MBA degree and CPCM

  21. New Program! Communities of Practice • More ways to connect to the information, people, and tools that you need. • Launch March 2008: • GSA Schedule Contracting • Small Business Contracting • Performance Based Acquisition • Online features: e-courses, discussion forums, listservs, blogs, expert networks, e-newsletters, website, research archives • Meetings at World Congress, new educational conferences, quarterly magazines

  22. What you can do. • Lead by your actions. • Be a “chief courage officer” • Stay informed on the issues. • Have opinions, and engage in the discussion. • Participate in continuous learning. • Demonstrate your competency by getting certified. • Resist cynicism and skepticism. • Participate in your NCMA chapter. Engage in your profession!

  23. NCMA 21740 Beaumeade Circle, Suite 125 Ashburn, VA 20147 Neal J. Couture, CPCM Executive Director couture@ncmahq.org 1-800-344-8096 x423 571-382-1123 703-448-0939 (fax) www.ncmahq.org

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