Industry Warns Congress That NDAA Provisions Could Increase Costs,
Delay Work, Stifle Innovation
Arlington, Va., July 29, 2010—Acquisition policy provisions in
the House and Senate versions of the 2011 National Defense Authorization
Act could have unintended consequences that increase costs, delay
programs and stifle innovation, the Professional Services Council, as a
member of the Acquisition Reform Working Group (ARWG), said in
industry-wide comments submitted to lawmakers on July 28.
Among the ARWG recommendations PSC suggests that Congress adopt:
- Inject an analysis of cost savings and small business impacts into
insourcing decisions (House sections 325 and 850).
- Eliminate provisions that would require DoD to make cost at least 50
percent of contract proposal evaluations. This would arbitrarily
restrict an agency’s ability to establish proper evaluation
criteria and make best-value decisions, which could hurt government
performance and ability to obtain the best, most innovative solutions
(House sections 851 and 502).
- Improve provisions that address the responsibilities of the Defense
Contract Audit Agency and contractors in resolving business system
deficiencies. ARWGs recommendations would ensure the fair and timely
resolution of deficiencies (Senate section 841 and House section
404).
- Significantly modify or eliminate provisions that mandate
contractors adopt supply chain security procedures and restrict
contractors from competing for certain opportunities if they don’t
implement protections. ARWG encourages DoD to share information about
perceived risks with the private sector to allow companies to mitigate
or eliminate the risks (Senate section 815).
“Adopting ARWG’s recommendations would ensure
Congress’s proposed reforms do not have unintended consequences
that could stifle industry innovation, delay programs and drive up the
cost to government during this time of increasingly austere
budgets,” said PSC Executive Vice President and Counsel Alan
Chvotkin.
To read ARWG’s complete commentary click here.