Emerging Trends in Procurement andWhat’s New in NCMA
Neal J. Couture, CPCMExecutive DirectorNational Contract Management Association
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
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
PEGASYS
WARSIM SE-CORE
NGATS
IBS
AVCATTAWACS
TSV TBMCS TCO
PATRIOT
NFCS
MCTIS
LFC2IS
MAGIS
MOUT-OIS
MILES XXI
F/A- 22
SIMACET
BATESAALPS
SECOMPI
C-130C-17
SOLDIER-CATT
C-5
CBS
ACTF
FIOP
GIG
TACSIM
IEWTPT
LOGISTICS AALPS
C-5 C-17 C-130 MILES XXI PEGASYS SE-CORE
INTEL AWACS IBS MAGIS MCTIS MTS NGATS PKI
TRAINING ACTF AVCATT CBS IEWTPT SECOMPI SOLDIER-CATT TACSIM WARSIM
FIRE SUPPORT BATES F/A-22 NFCS TSV
MOB/SUR STEPS MOUT-OIS
Command and Control FIOP GIG LFC2IS SIMACET TBMCS TCO TELEPORTS
ADLER
MTS
ACS
JC2
SLAMRAMM
MIP
MSD
IDM
DMS-A
BSTF
JCM
GMLRS
ATACMS
Profiler
TAIS
PAFCS
MLRS
MEADS
MCSLLAPI
JTAGSJLENS
IMETS
GCCS-A
GBS
Mongoose
FAAD-C31
FBCB2
DTSS
C2PC
BCS3 BFT
ADOCS ASAS AMDWS
AFATDS
HMEE
REBS
APACHE
HIMARS
CHINOOK
Blackhawk
A2C2S APKWS
PHOENIX
FIREFINDER (Q37)
PLS
BSM
SHORAD
Engineer Vehicle
CBRNRS
INTEL ACS JTAGS TES UAV-CL IV-b
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
MANEUVER APACHE APKWS JCM
AIR DEFENSE ATACMS MEADS SLAMRAMM SHORAD JLENS LLAPI
FIRE SUPPORT ADLER FIREFINDER-Q37 GMLRS HIMARS PROFILER PHOENIX MLRS
LOGISTICS BSTF CLOE PLS MSD
MOB/SURV BSM BLACKHAWK CBRNRS CHINOOK Engineer vehicle HMEE REBS MONGOOSE
GCSS-A
TES
UAV-CL IV -b
Soldier System
Internal Interfaces
CAMEL
HIPPO
TEP
DCGS-A CHIMS
Land Warrior
LWP
FRS
LHS FUEL FARM
AMPS/JMPS
HEMTT
HMMWV
AAFARS
PLST
FIREFINDER (Q36)
SentinelTC-AIMS II
Logistics AAFARS CAMEL FMTV HEMTT HMMWV HMMWV M1114 HIPPO LHS FUEL FARM LWP MAINTENANCE TRUCK/FRS PLST TEP TC-AIMS II
C2 AMPS/JMPS
Sentinel
INTEL DCGS-A CHIMS
FIRE SUPPORT FIREFINDER (Q36) IMS NLOS-LS
MANEUVER
LAND WARRIOR SOLDIER SYSTEM
FMTV
HMMWV M1114
UAV CL IV ASTAMIDS / EO/IR Tactical SIGINT PAYLOAD UAV –SAR/GMTI
NETWORK ADSI BVTC CLOE DCTS GPS JTRS1 JTRS5 JWARN LFED MC4 NCES PKI STEPS TELEPORTS WIN-T
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
MGV ACSW CED FCS–Non FCS CID HTI-FLIR LIGHTWEIGHT120MM cannon (Pending) MFCS MK-44 PROPHET JCAD JSLSCAD JBPDS JBSDS
SOLDIER HSTAMIDS LLDR MK VII RADIAC SET Soldier to FCS CID Soldier to Soldier CID
UGV ARV(L) JAVELIN MULE GSTAMIDS
TRAININGATIA
CCTTCTIADLSOneSAFOneTESS
ExternalSystems and Interfaces
Future Combat System (FCS)
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
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
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
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
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.
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.
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
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.
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.
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.
Strategic Initiative
Increase 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.
Strategic Initiative
Create 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.
Upcoming PublicationsProduct Date
Journal of Contract Management. September 2007
The Resource Guide 2008 November 2007
The 2007 Salary Survey. February 2008
Upcoming Education ProgramsNES Seminars
Solicitations, Bids, Proposals and Source Selection September 2007
New Far 45 Government Property Rules January 2008
Earned Value Management April 2008
Contract Costs and Pricing September 2008
Audio-seminars
FAR Overview (Parts 5, 6, 7, and 8) September 13
Contract Administration Basics (Performance Monitoring)
September 27
Contract Law Basics (Ethics and Compliance) October 4
Pricing Basics (Price Analysis) October 18
GSA Multiple Award Schedule (MAS) Contracts October 23
Upcoming Conferences
Event Date
Government Contract Management Conference in Bethesda, MD
November 8-9, 2007
Mid-Year Leadership Conferences in Las Vegas, Orlando, and San Antonio.
January-February 2008
World Congress 2008 in Cincinnati, OH. April 13-16, 2008
Leadership Summit 2008 in San Diego, CA June 2008
Aerospace and Defense Contract Management Conference in Garden Grove, CA.
July 2008
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
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
New Program!
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!
NCMA21740 Beaumeade Circle, Suite 125
Ashburn, VA 20147
Neal J. Couture, CPCMExecutive Director
[email protected] x423
571-382-1123703-448-0939 (fax)
www.ncmahq.org