This blog provides updates on the latest news for government and commercial contracts and procurement professionals. Also includes Federal changes and its effects to large and small businesses.
Thursday, January 15, 2015
What to do with FEMA?
Since its creation in 1979 FEMA (Federal Emergency Management Agency) has grown in government spending to absurd levels. Each decade more and more government funding goes to FEMA, some for good reason given the floods, hurricanes, etc. each year. However, how helpful is FEMA in managing emergencies when they are called to action?
Having been in three different natural disasters where the state called on the federal government to send FEMA -fire, earthquake, and floods- I can attest to the lack of support or organization that FEMA provides to the disaster victims. According to CATO's latest research, FEMA is failing in all areas.
CATO noted many examples of failures that occurred after Hurricane Katrina, since that was when the most glaring of the FEMA failures began. FEMA's mis-communication of delivering water, clothes, and ice, finally determining that many trucks drove cross country (instead of driving several hours from their original location) and never delivered the needed items to the correct location. FEMA ended up throwing out these items several years later as they had been poorly stored. FEMA kept other federal agencies from providing aid in time to affected areas or causing significant delays to the victims. The Red Cross was not allowed to go into the New Orleans Superdome to deliver emergency items. FEMA kept volunteers from getting to hospitals and emergency shelters, doctors were kept out as well. CATO mentions that even corporations such as Amtrak and Walmart were not allowed to successfully offer victims its donations due to FEMA red tape. FEMA mis-managed grants from FEMA's NFIP (National Flood Insurance Program) up to $1B in fraudulent claims. Claims were investigated by the GAO, the Associated Press, and New York Times. An analyst from the AP found that “people claiming to live in as many as 162,750 homes that did not exist before the storms may have improperly received as much as $1 billion in tax money.”
CATO suggests that FEMA end its support of emergency's altogether, end FEMA's NFIP program by privatizing it, which would reduce their funding by 90%. State's are already starting to prepare their own stockpiles of emergency supplies given their experience, or what they have seen happen when an emergency occurs. Corporations whose headquarters are in some of these states are also stepping up to help in emergency situations, as mentioned in the research. The more prepared states are finding that they don't need FEMA's involvement. Unfortunately, FEMA is still called to support, and the money keeps coming. What I found encouraging was CATO's suggestion of what to do with FEMA after the budget cut: "flood mapping, continuity of operations, the public alert system, training programs, and technological and radiological hazards preparedness. Those activities should be moved to other agencies and FEMA closed down".
Wednesday, March 5, 2014
What is the Air Force's Space Fence? And why will it cost $2B for an upgrade?
In 1961 the Air Force created a Space Fence that tracks objects in space and is used to protect spaceships and satellites from being struck by "high-speed orbital debris". The Space Fence — also known by its formal name, the Air Force Space Surveillance System — consists of three transmitters and six receivers that stretch across the southern U.S., using radio waves to paint a picture of a slice of space. The items it detected ranged from satellites and debris to meteors. As the article explains, this debris could cripple satellites and cause damage as much as what was reflected in last year's movie Gravity. Since then the only time the space fence was shut down was in September 2013 during the budget cuts. The space fence is 40% of the network's tracking system, and has not come back online since September. A C-band radar was relocated to keep track of the area the space fence covered, but that is only a band-aid.
"The U.S. military also uses the data to offer a close approach warning service for owner-operators of the more than 1,000 active satellites in orbit," Brian Weeden of the Secure World Foundation writes. "In 2012, satellite operators conducted 75 maneuvers to avoid potential collisions as a result of those warnings."
This year the Air Force budget includes a new and improved space fence for approximately $2B. Why so much? The current space fence could track approximately 23,000 items in space. The new system has expanded its S-Band radar to track 480,000 items in space. The new space fence is expected to be operational in 2017, but due to the delays in award, it may not be operational until 2018.
Monday, February 3, 2014
Taxpayers, please bend over...again! Farm Bill 2014!!
Congress, in its infinite wisdom, has decided to create a 2014 Farm Bill that is much larger ($956B), than the veto'd 2008 Farm Bill worth $640B, over 10 years (or revised every 5 years as proposed).
Taxpayers will pay big farmers more subsidies since they suffer so much...increased profit?? Farmers can process insurance claims under this new bill if their crops produce poor yields or declines in revenue.
Why are food stamps and farming combined in a bill? It is all political, so that the bill can be passed faster, says Senator Thad Cochran (R–MS).
How will food stamp recipients be tested and weaned off of this program? There will be no drug tests or work requirements for food stamp recipients. Don't worry, those requirements were removed from the 2008 Farm Bill. They can also have any amount of money in their bank accounts as long as they meet the minimum annual salary amounts based on the new bypass asset tests. Huh?
How are taxpayers going to pay for all of this?
Interesting tidbit: "Net farm income is expected to reach “a remarkable $128.2 billion this year – the highest level since 1973,” making the aforementioned farm programs all but insanity. The “farm” bill means more expenses for taxpayers and higher costs for consumers. It means more unnecessary government dependence for wealthy farmers and food stamp recipients."
Tuesday, January 14, 2014
If U.S. agriculture is doing so well, why subsidize the farmers? Time to eliminate the USDA?
The Cato Institute included the USDA in its "Downsize the Federal Government" series. The USDA was established in 1862 when we needed to have a federal agency help organize our agricultural industry. Nowadays the agriculture industry is as active as most other industries in the US, it is surviving and thriving.
Begs the question of why increase government spending to cover the USDA?
What are the taxpayers paying for? How about $20B in farm subsidies, $110B in food subsidies, $5M for oversight/administration, and over $1B of loss due to fraud and abuse. Because the USDA is involved in price regulating, they also set the prices on US farmed items, such as sugar, which is two times more expensive in the US than elsewhere. What if we eliminated the USDA? Cato proposes a cost savings of $140B! Not bad.
Monday, January 6, 2014
If you are bored, or curious...new Federal apps for your phone.
It must be because we are all coming back from the holidays that I thought this article was interesting. In any case, there are a few good apps worthy of downloading from the Federal government. If you are interested, the link is here. I have not tried to use any of the apps. Might pace myself and try them out tomorrow!
Monday, December 9, 2013
CIA + $3B = FLOP?
How is it that government agencies make enormous mistakes using money that we give them, and it is ok? This time the CIA admitted that its project titled GDI - Global Deployment Initiative did not live up to expectations. Matter of fact, it didn't do much of anything except waste more government (taxpayer) money. Interesting.
Wednesday, November 20, 2013
Is it time to PaaS!
The latest article in the Federal Times references a recent government study that confirms the use of maintaining platforms on the cloud would result in significant cost savings. Government agencies are looking to the cloud for software application development, which would reduce IT project development time by 31%. Using platforms as a service is a low risk and effective savings alternate to the current type of support provided. Estimates of the savings are in the billions of dollars ($20B) annually.
Wednesday, November 13, 2013
Ideas on Government Spending Cuts
The Cato Institute and DownsizeGovernment.org teamed up to create budget cuts to significantly reduce government spending over the next 10 years. While some of the changes are common sense, a lot of their ideas are very insightful and will help reduce the debt as well. The idea of both organizations is to put the responsibilities on people and the states and keep it out of the hands of the federal government. The dependency for government intervention is overwhelming and is going in the wrong direction, this plan is a good start to reverse that dependency.
Friday, November 1, 2013
What is reputation risk?
Risk management has been an important part of doing business for many years. Risk management includes the information gained from potential partners and suppliers. Nowadays, managing risk is more about business intelligence of a company's reputation. It means, what is a potential partner or supplier willing to do to get the job done. Corruption, reduced quality of service or products, and compliance are the top three concerns when managing risk. Surveys were completed in this article from the WSJ regarding the types of reputation risk.
Tuesday, October 22, 2013
Antitrust Enforcement by the FTC and DOJ is becoming too intrusive. Whatever happended to free markets?
After reading the policy analysis by The Cato Institute on antitrust enforcement, I was surprised that there was more regulation by the Obama administration than the Bush or Clinton administration. I was not surprised that there was more intrusive regulation occurring causing industry changes in the Obama administration. Very scary! The analysis overall was very interesting and thought provoking. The old theory from Adam Smith to let the invisible hand (i.e. free market, less government intervention) lead markets is vanishing.
Monday, October 7, 2013
USPS = Fail!
The US Postal Service (USPS) is a mess. Although they are constantly failing, no one in the government seems to notice. The recently failed an IG audit. They are behind in paying their debt. They cannot keep to their role of postal delivery. Why is the USPS still open? Don't forget, our taxes go towards paying this agency to stay open!
The latest audit reflects the USPS failure of its acquisition process. They state that their employees were unaware of its purchasing policy when the IG determined that 38% of its $1.3B spending was sole sourced. Unacceptable to most but not to USPS.
It is especially odd when USPS complains about the need for additional funds when they cannot seem to manage what funds they are obligated.
What is the role of the USPS? "The core function of the Postal Service is the safe, reliable, affordable delivery of mail and packages to every address in the country and its territories." Really?
Tuesday, October 1, 2013
Will this split work for SAIC and Leidos?
SAIC was a private, employee owned company. It was so different and dynamic from its competition. People rarely knew SAIC or what the company did if they were not in the industry. As a stockholder and entrepreneurial employee you were drawn into the company and became very passionate about the work, the people, and the customers. Then SAIC's Founder/CEO retired...then the company went public...three CEO's with different visions passed through after rearranging staff/management/ideals. SAIC is nothing like it once was. The passion is gone. The employees are unsure of their future. Maybe the split into two companies is a good thing, I guess we will find out.
Monday, September 23, 2013
Another Year, Another Shutdown...Maybe!
It is amazing how little gets accomplished in D.C., except of course how often the Government plays chicken with itself. It is that time of year again when the Republicans and Democrats face off to determine how to keep a shutdown from occuring while trying to bend the rules and protect themselves. Why is it only themselves they are worried about and not the people who elected them? Oh, now I remember, its because they will continue to get paid, receive benefits and have full retirement NO matter what happens. Latest article here.
Monday, September 16, 2013
Getting tired of delays due to award protests? So is the PSC.
The PSC is the Professional Services Council, an organization that represents government services contractors. The are lobbying for assistance from legislatures to improve current acquisition issues on award notices and the high number of protests. The issue that is causing a lot of delays has been with award protests caused mostly by the lack of specific data as to the reasons for non-selection. Some companies feel the need to protest in order to get more information as to the evaluations of their proposal. PSC believes more information should be provided at the time of the award notice, which may significantly reduce the number of protests issued. Read more here.
Friday, September 6, 2013
The US Army and US Air Force are working together...and they saved money? How?
Somehow the DoD is catching on to what the rest of the US has already understood, save money with less and learn to share. The Army and Air Force are working together on an IT networking security, bandwidth, and upgrade to ensure that they get the project completed but also save money. The Army saved about $1B in future costs, and the AF saved about $1.2B. Read about it here.
Wednesday, August 28, 2013
Budget cuts cause supply chain upgrades...its about time!!
So the government is becoming quite efficient with some of its agency supply chains. Its about time! Upgrades typically cost more than they are worth, and work less than they should. How are these upgrades working so far, and for whom are they for? Not bad, however, they are only ramping up small efforts. The bigger upgrades have either been cancelled or put on hold. See the article here.
Thursday, August 22, 2013
Who ever said sequester was good for growth?
Once again a billionaire has stated our economy is better off with the sequester than if the government stopped meddling with our tax dollars. Surprise! What do the facts show? Our economy is sluggish, as expected, and the sequester is doing major damage now and in the future. http://www.businessweek.com/articles/2013-08-21/please-stop-saying-the-sequester-is-good-for-growth
Wednesday, July 24, 2013
More sequestration problems!! Can you say furlough?
@FederalTimes: Sequester may undo gains in building contracting workforce http://t.co/afL8qwJiH2
Monday, June 24, 2013
What is CBAR? Well its not FUBAR...at least not yet!
The CBAR system is Contractor Business Analysis Repository that is administered by Defense Contract Management Agency (DCMA). CBAR is now being used by Contracting Officers for cost analysis on defense contractors prices on previous proposal submissions. CBAR shows trends of pricing and cost analysis data with regard to cost estimating systems and practices of all DOD contractors managed by DCMA. For now, there is a small percentage of approved CO's due to the sensitive proprietary nature of the data. The Pentagon has created ICATs (Integrated Cost Analysis Teams) to assist any and all CO's with the data analysis and information. http://www.federaltimes.com/article/20130623/DEPARTMENTS01/306230006/How-DoD-became-smarter-customer?odyssey=mod|newswell|text|FRONTPAGE|p
Wednesday, May 29, 2013
How are Americans feeling the impact of the Sequestration?
Most all of the federal services are impacted by the Sequestration and no one is immune. The changes are affecting the military, people using public support, court systems, airport services, DOD contractors, it goes on and on. Think of all of the services provided to us you would be surprised what is being cut and when. These services are provided courtesy of our tax dollars, and we have no control over where the money goes and how much. http://www.washingtonpost.com/blogs/wonkblog/wp/2013/05/29/more-americans-are-feeling-the-effects-of-the-sequester/?wpisrc=nl_pulse
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