Compliance

FEI and Federal Contractor “Acquisition Reform”

During the last Congress, House Armed Services Committee (HASC) Chairman Buck McKeon (R-Calif.) asked Intelligence, Emerging Threats and Capabilities Subcommittee Chairman Mac Thornberry (R-Texas) to begin developing a plan for “Acquisition Reform” by soliciting industry and Federal Agencies input. Several major contracting industry associations were asked to submit proposals covering a variety of aspects of “acquisition reform”. Subsequently, the Aerospace Industry Association, the IT Alliance for the Public Sector, the National Defense Industry Association, TechAmerica, and the Professional Services Council provided extensive recommendations to both the House and Senate Armed Services Committee (HASC and SASC) chairmen.On April 12, 2014, FEI’s Committee on Government Business (CGB) responded directly to a request from Lynn Williams, the HASC staff acquisitions expert, for reform recommendations made during a CGB meeting in November 2013 with a white paper entitled: “Suggested Areas to Examine for Improvements to the Defense Acquisition Cost Oversight Process at Major Contractors.” The full white paper can be downloaded here. The CGB distributed this paper to both HASC and SASC.With the advent of the 114th Congress this January, Rep. Thornberry, new Chairman of HASC, indicated he intended to introduce an acquisitions reform bill by late April. This “discussion draft” would be revised per industry and federal agency recommendations and incorporated into the FY2016 National Defense Authorization Act (NDAA),which would be introduced in fall 2015. Lynn Williams also told the CGB during their February 2015 meeting that this process was only beginning, and that there would be reform measures introduced in 2016 and 2017, as well.Arising from their recent discussion with Lynn, the CGB is preparing some follow-on materials. Of special interest was a proposal from committee members that industry and private sector representatives be seated on the Federal Acquisition Regulatory (FAR) Council and supplemental councils such as the Defense Acquisition Regulations (DAR) Council. The proposal concludes: “direct and involved participation by representatives of constituencies outside of the Government bureaucracy will result in streamlined regulations, without usurping the authority of the Regulators and the intent of Congress.” This proposal may be included in the Acquisition Reform Working Group’s...

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