Service Contractor Magazine - March 2014

March 2014 / The Voice of the Government Services Industry

LEADERSHIP

NEGOTIATION BUSINESS ACUMEN

TECHNOLOGY

CONVERGENCE

ACQUISITION

INNOVATION

Building the Workforce of the Future 7

the human element

11

ALso inside:

three observations by a rising acquisition professional

18

dispatches from the cidc conference

37

leadership summit highlights

March 2014 Service Contractor is a publication of the Professional Services Council 4401 Wilson Blvd., Suite 1110 Arlington, VA 22203 Phone: 703-875-8059 Fax: 703-875-8922 Web: www.pscouncil.org All Rights Reserved PSC Staff Stan Z. Soloway President & CEO soloway@pscouncil.org Alan Chvotkin Executive Vice President & Counsel chvotkin@pscouncil.org Bryan Bowman Manager, Marketing bowman@pscouncil.org Matt Busby Manager, Member Services busby@pscouncil.org Joe Carden Vice President, Marketing & Membership carden@pscouncil.org Elise Castelli Manager, Media Relations castelli@pscouncil.org Charlene Dowdy Membership Associate dowdy@pscouncil.org Paul Foldi Director, International Development Affairs foldi@pscouncil.org Karen L. Holmes Office Manager/Receptionist holmes@pscouncil.org Roger Jordan Vice President, Government Relations jordan@pscouncil.org Jeremy W. Madson Manager, Federal Affairs madson@pscouncil.org Melissa R. Phillips Director of Meetings & Events phillips@pscouncil.org Robert Piening Director of Finance piening@pscouncil.org Jean Tarascio Manager, Events Services tarascio@pscouncil.org Matthew Taylor Policy Associate taylor@pscouncil.org Kristine Thomas Executive Assistant thomas@pscouncil.org For advertising or to submit articles or items for the Member News section, contact: Bryan Bowman

The Voice of the Government Services Industry

9 GenNext:

Building the SES Corps of the Future 7

Sounding board: the HUMan element

11

observations of a rising acquisition professional

13

strength in numbers

18

dispatches from the cidc conference

4 President’s Corner / 23 Bill Tracker / 29 Navigating the Murky Waters of the SCA (Part II) / 32 Policy Spotlight / 34 Committee Corner / 36 Member News / 37 2014 Leadership Summit / 38 PSC Scene & Heard Cover: Base illustration, My Life Graphic/shutterstock.com with montage by Ana Eastep, Studio25

Professional Services Council

Service Contractor / March 2014 / 3

PRESIDENT ’S CORNER

P

eople are the core of our industry and they are the core of government. Virtually every company talks of its goal to recognize, value, empower—and retain—people.

Over the last few years, we too have been focusing on people.

On the government side we’ve focused on the human capital crisis, as so clearly articulated in the 2013 PSC Leadership Commission report, and on the importance of enhanced and new resources for training and developing that workforce.

On our own industry side we’ve narrowed in on the competitive marketplace for top-tier talent, the importance of revisiting and modernizing talent management and workforce “greening” initiatives, and much more.

People are also the central theme of this issue of Service Contractor. In it, we provide a number of perspectives from industry and government, all intended to help further an important conversation about our common, vital asset. Among our featured stories this month are two perspectives on the government workforce, one from the inimitable Max Stier, CEO of the Partnership for Public Service, who talks about building a new generation of leaders in government; and another from Alex Mavroukakis, a Department of Education contracting officer and a founder of the Rising Acquisition Professionals-Community (RAP-C). For a private sector view, in our Sounding Board segment we asked three PSC Board members to talk about what their companies are doing to “green” their workforces and the challenges, as well as benefits, they are experiencing as a result. Thanks to Chemonics President and CEO Susi Mudge, Accenture Federal Services COO John Goodman, and Eagle Ray President and CEO Babs Doherty for sharing their insights. Finally, on the people theme, Paul Foldi, PSC’s International De-

4 / Service Contractor / March 2014

velopment Director, takes a look at what the U.S. Agency for International Development is doing to build its acquisition workforce, PSC Executive Vice President and Counsel Alan Chvotkin highlights three labor and personnel trends to watch, and PSC Federal Affairs Manager Jeremy Madson reports on the work of PSC’s Human Resources and Labor Policy Committee.

Speaking of USAID, we’re also delighted to include a special feature called “Where Do We Go From Here: Dispatches from the CIDC Conference.” In this unique piece we share DAI President and CEO Jim Boomgard’s observations and reports from the first ever such conference, as well as the insights of former Rep. Howard Berman, who delivered the closing keynote. In addition, Jen Flikinger and Aaron Raddock of BakerTilly, and James Kelley of Morgan Lewis & Bockius, offer the second of their two part series on the challenges of applying the Service Contract Act to the GSA Schedules; this time, the focus is on post-award issues.

A lot to think about. A lot of substance. And we hope, a lot of value.

As always, your support of PSC is deeply appreciated.

Stan Soloway President & CEO

Professional Services Council

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Professional Services Council

SOUNDING BOARD:

In each issue, PSC asks members of our board of directors to offer their perspectives on key challenges facing the government services industry.

The Human Element:

Getting the right people, with the right skills and experience into the right job The need to attract and rotate new talent into existing work and to ensure existing talent (even those with deep customer and domain knowledge) do not become too “expensive” for the position they hold are key aspects of contemporary human capital planning. How have you and your company seen these challenges evolve in recent years? What key best practices drive how you and your company are addressing them?

W Babs Doherty

Founder, President and CEO of Eagle Ray

ith looming budget cuts, the government is tightening its spending. The pinch is being felt across the board especially in the defense and intelligence sectors, especially with contractor support.

Historically, when budgets were nearly unconstrained, senior staff were highly sought after for their depth of experience and knowledge, but often at a significant price. Although it is appropriate to compensate senior staff for their expertise, the government can’t afford the seasoned advisors any more, or at least not as many. Yet with so much work still to be done and the problems becoming harder, senior expertise is needed more than ever before.

In a push to save money, the government is looking to capitalize on younger workers’ energy and innovation at a reduced labor price. This younger, energetic, resourceful, and networked Generation Y resource pool is ready to accomplish all things digital and are masters with social continued on page 8

T John Goodman

Chief Operating Officer, Accenture Federal Services

he success of our business is intimately tied to the success of our clients and the development of our people. Our employees’ skills, abilities, and knowledge have always been at the core of our business, and now with our clients’ increasing need for highly specialized skills and cost effective delivery, our talent development strategy—the way that we attract, develop, deploy, and “green” employees—is more important than ever.

We believe that greening is ultimately a question of delivering value to our clients. Our approach is to hire talented people, invest in their professional development, and build in each employee a commitment to stay and grow with us. At each step in their career, we assign our employees to roles to maximize the value they deliver. That means meeting the mission cost effectively.

Our starting point is recruiting. We look for a passion for driving excellence for Accenture and our clients. In the United States, Accenture hires over 5,000 new joiners each year. We continued on page 17

Photo: IQoncept/shutterstock.com

A Susanna Mudge President and CEO, Chemonics International

t Chemonics, our people are our most important asset, and human capital planning is critical to us. Our guiding principle is investing in our employees, particularly at the start of their careers. We strive to expose them to the full spectrum of our business, encourage them to take on new challenges, and give them opportunities to apply that experience across a wider variety of technical fields.

The changing nature of the workforce is partially driving us. For the first time, we have as many as four generations of employees sharing the workplace. In our home office, 32 percent of our employees are under 30 and near the beginning of their careers. Another 55 percent are between 30 and 49 years old and are mid-career. As a learning organization committed to developing our employees, this diversity offers tremendous opportunities.

Chemonics is dedicated to our mission of helping people live healthier, more productive, and more independent lives, which aligns with the mission of our main client, the U.S. Agency continued on page 17

Professional Services Council

Service Contractor / March 2014 / 7

Babs Doherty

continued from pg. 7

media, graphical presentations, and digital information access and management. However, as workplace new-comers, they lack several imperative strengths necessary, especially for defense and intelligence, that can only be learned through experience.

The government currently has access to an experienced, but expensive federal and contractor corps that is vital to completing global defense and intelligence missions each day. But the government has to cut expenses. They can readily reduce labor costs by choosing younger workers, but might jeopardize mission operations with their inexperience.

Too often within the world of federal contracting, civilian expectations of contracted staff members are unrealistic. An assumption that people are 100 percent interchangeable and can start and stop work on a dime is unfounded. Elements including personnel expertise, job familiarity, and even what should be simple administrative activities like badging and clearance cross-overs all factor into ramp-up time and productivity. So while the shift to greener labor is enticing as many advantages can be realized over time, a one-for-one swap-out of a more senior workforce for a younger workforce isn’t realistic. It’s nearly impossible to replace the years of experience, education, and expertise that those individuals possess and translate into action.

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Nevertheless, especially because of fiscal constraints, the government’s shift to hiring younger, cheaper workers is a reality.

These younger professionals are energetic. They are creative.

They are innovative. If they can find a way to do something easier, faster, or more digitally appealing, they’ll find it. And at a lower price. The concern is the potential impact on mission readiness and accomplishment. Although it would be a payroll boon to release all long time experienced staff to retirement and shift entirely to young, new talent, it’s a vision that the government just can’t realize. Nevertheless, by finding the right mixture of long time, experienced and green Y’s, the government can save some cost.

To better meet the government’s goal of reducing labor cost without jeopardizing mission success, a revised approach to labor must be taken, with both civilian and contractor corps. Imparting the experience and expertise veteran staff have gleaned through decades of dedication to a new American generation will help expedite their ramp-up time and reduce risk to mission interruption. Inciting youthful innovation, vectoring their vitality, and encouraging energetic approaches to daily deliverables may ignite the “faster, cheaper, better” mantra.

Despite current higher unemployment and a dearth of jobs, employers necessarily need to be creative in order to attract and retain employees, especially younger ones who may otherwise be more apt to depart for greener pastures when alternative opportunities arise.

At Eagle Ray, we focus on identifying incentives that entice and retain quality team members, of all ages and diversity.

We’re proponents of work-share, flexible work schedules, and enabling our team members to creatively contribute to the mission and team. Team building events aid with building rapport between all members. Our more mature team members follow my lead and constantly seek to strengthen and diversify our individual and corporate capabilities. We’re seeking to wisely invest in our next generation of valuable contributors. They will not only help our company to continue growing and succeeding, but more importantly assist our customers with achieving success today and in the future. Too often overlooked, the simple act of publicly recognizing one’s achievement and personally thanking them for their efforts goes a long way to build trust and dedicated staff. And, all of these are low or no cost incentives.

Obviously the ratio will need to be tailored for varying conditions, yet, in many cases, a ratio of pi—one experienced mentor to every three Gen-Y’er—helps the government realize the cost savings they seek. This proportion allows for individualized attention for mentorship while maintaining the necessary concentration on and expertise needed towards continued mission success.

Over time, the government will be able to repeat the process again and again, helping save money while continuously introducing innovation. At Eagle Ray, we look forward to the continued opportunity to help achieve greener outcomes for all. 3 Professional Services Council

GenNext:

Building the SES Corps of the Future

Illustration: VLADGRIN/shutterstock.com

D

by Max Stier, Partnership for Public Service

uring the next five years, nearly two-thirds of the roughly 7,200 members of the Senior Executive Service (SES)—the civil servants who hold the top managerial and policy positions in government—will be eligible to retire.

The loss of these experienced executives along with their institutional knowledge will create a major void and present a serious challenge for the federal government, but it also offers an opportunity to bring new thinking and a new generation into the leadership ranks.

So the question now is whether federal agencies are prepared for the turnover and whether they are focused on identifying and developing high-performing individuals to fill these important executive positions?

There are pockets of excellence in terms of executive development at a number of federal agencies,

including at the Nuclear Regulatory Commission, the Internal Revenue Service, the Department of Defense and the Department of Veterans Affairs.

But there is no standardized way to prepare executives for the SES. This means each agency has created its own methods of coming up with executive talent, resulting in varied quality of development programs, the frequent absence of a cohesive strategy and virtually no attention paid to training and selecting executives needed to meet broader government-wide needs.

In short, a potential crisis is looming. While positions will be filled, the question remains whether agencies are grooming and selecting the best possible talent to lead the government in the years ahead as we face greater complexities, changing missions, and the need for more inter-agency cooperation.

It is imperative that agencies immediately engage in serious workforce planning if they are not doing so; continued on page 10

Professional Services Council

Service Contractor / March 2014 / 9

from page 9

pinpoint where vacancies will occur and what skills will be needed; and conduct leadership assessments to identify high potential individuals and provide them with development opportunities.

This includes formal training programs such candidate development programs, on the job experience, rotational assignments and opportunities to learn from coaches and mentors.

The search for this talent should not be limited to just internal candidates, but individuals at other agencies and outside of government—the private sector, nonprofits, state and local governments—who can bring new perspectives and experience to the table.

While these steps must be taken immediately, the President’s Management Council and the Office of Management and Budget in the longer term must begin to oversee SES strategy and develop a pipeline of the most seasoned executives to serve as government-wide assets. These individuals, the top tier of the SES, would be deployed to manage presidential priority goals and critical missions involving multiple agencies and programs.

Currently, members of the SES are viewed as the purview of individual agencies.

In the meantime, agency political leaders must play a pivotal role in ensuring the development and succession of the new generation of career executives. It is obviously important to be focused on policy, but ineffective management makes policy implementation quite treacherous.

The political leadership must hold their senior career executives accountable in their performance plans for work on developing and nurturing the talent pipeline, and both the political and

top career executives should actively participate in selecting highly qualified individuals for leadership-development programs and serve as advisers and mentors to the participants.

Agency leaders also need to institute robust orientation programs for new SES members so that they are better equipped to perform in their new function and that they begin these critical positions with an understanding that they are leaders for the government and the agencies they work for, and not just the programs they might run.

The SES accounts for less than one percent of our federal workforce, but it has a disproportionate effect on the rest of government. The right leaders clearly set the tone for the rest of their workforce—motivating their employees, promoting innovation and driving results. Poorly equipped, under-developed leaders achieve just the opposite, and the American people pay the price.

Historically, federal employees have held low opinions of leadership in government. The 2013 Best Places to Work in the Federal Government Rankings, for example, show that senior leaders struggle most with effectively motivating the workforce and communicating with employees.

The SES is the critical piece of the government performance puzzle. We need to get the SES right for the rest of the pieces to fall into place. The changes in federal career leadership that are coming during the remainder of this decade could be a real turning point. It is an opportunity that cannot be wasted. 3 Max Stier is president and CEO of the nonprofit, nonpartisan Partnership for Public Service.

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Professional Services Council

Three Observations

of a Rising Acquisition Professional

by Alexander Mavroukakis, Rising Acquisition Professionals Community

O

ver the last six years, acquisition professionals have faced administrative and political turbulence, declining budgets despite similar mission requirements, and constant change. In spite of these challenges, they have successfully accomplished the missions of their respective agencies. Today’s acquisition is not my father’s acquisition. Three important observations should be considered in better understanding the current state of the acquisition community from a government perspective and its impact on acquisition.

Observation No. 1:

Contract Award Protests are up…Way up!

Since 2007, the number of protests filed with GAO has increased by 72 percent.

Number of Protests Filed With GAO Since FY 2007 3,000

#of Protests

2,500

2,229

2,475 2,429

1,989

2,000 1,500

2,353

1,411

1,652

1,000 #of Protests

500 FY 2007

FY 2008

FY 2009

FY 2010

FY 2011

FY 2012

FY 2013

Fiscal Year Source: GAO Bid Protest Annual Report to Congress for Fiscal Year 2013

This may come as no surprise since there are so many new contract entrants into the fiercely competitive federal marketplace while contract spending has remained relatively stable.

One reason this statistic is so important is that a protest has Professional Services Council

major impact on procurement lead time and workload. The FAR outlines the procedures for filing a protest, as well as the procedures that the contracting officer should follow to respond. The additional time required to comply with the procedures adds unforeseen lead time to procurement actions, thus creating additional responsibilities on top of an already overburdened workload.

Observation No. 2:

Acquisition Workforce Streamlining Has Eliminated Cross-Functional Expertise Across the Enterprise

In April 2005, the Office of Federal Procurement Policy (OFPP) established a methodology to develop federal contracting professionals through a standardized certification program known as FAC-C. The original intent of this program was to “standardize the education, training, and experience requirements for contracting professionals, which will improve workforce competencies and increase career opportunities.”

As agencies developed various training curricula to comply with this policy, an important element of contracting fell by the wayside, cross-functional expertise across the enterprise. One of the core strengths of a contracting professional is the ability to understand various components of an enterprise and how they align in program development, contracts, investments, and requirements. Acquisition streamlining has narrowed the focus of the trained professional to just focus on acquisition, and has created an environment of siloed expertise where the talent is limited to the individual business functional areas. This is not to discount the value of each business function’s key competencies; however, a successful contracting professional understands the various business functions within an enterprise and how they intertwine.

Observation No. 3:

Data is Not Available for Analytics on Entry and Mid-Level Acquisition Workforce

The current data collected for the government on the acquisition workforce is through the Acquisition Workforce Compecontinued on page 12 Service Contractor / March 2014 / 11

ACWS Results

Year Survey Conducted 2007 2008 2010 2012

Target Audience Reached Avg. Age of Respondent Years of Experience

*48% 51-55 11-20 Yrs.

22.6% 51-55 21 Yrs.

Unknown 51-55 11-20 Yrs.

Unknown 51-55 11-20 Yrs.

*Survey from 2007 only targeted 1102s Source: FAI Acquisition Competency Workforce Survey Reports 2007, 2008, 2010 and 2012

tency Survey (ACWS). Four data elements taken from four years of data of the ACWS are shown above: Is the average age of the acquisition workforce really 51-55 years old? Priorities of a 51-year-old employee differ greatly from those of a younger professional. With an influx of agency intern programs and entry-level hires into government, how are the needs of younger acquisition professional entrants into the workforce being analyzed? Any policy decisions based on assumptions drawn from the ACWS would not reflect the pressing needs of young acquisition professionals in this evolving business.

Closing Thought

The acquisition community has been primarily comprised of two players—government and industry. The growth on both sides has been evolutionary and has a critical impact on the way acquisi-

tion has been and will be performed going forward. These three major observations should spark additional conversation about the future of acquisition and the direction of constructive change.

Alexander Mavroukakis currently serves as a contracting officer for the U.S. Department of Education’s Office of Federal Student Aid. In addition to his day-job, Alexander was part of a group of up-and-coming government acquisition professionals who founded the Rising Acquisition Professionals Community (RAP-C). The mission of RAP-C is to promote a community among the younger generation of acquisition professionals and supplement their development through various educational, networking, and social opportunities.

Today, RAP-C has grown to over 900 members within the community, both private and public. Mavroukakis holds a Bachelors of Science in International Business from the University of Maryland and is currently pursuing a dual MBA/MS in Information Systems from Johns Hopkins University.

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Professional Services Council

Strength in Numbers?

USAID’s Workforce is Larger, but Younger

by Paul Foldi, PSC International Development Affairs

I

n spite of its stature as the nation’s most widely recognized implementer of foreign assistance, USAID has certainly taken its share of lumps over the past decades. The fall of the Soviet Union brought a “peace dividend” backlash from those who viewed the world through bi-polar lenses and wanted to declare victory by ending U.S. overseas engagement entirely. Fiscal hawks have always had their knives out for the foreign assistance budget that lacks any significant domestic constituency to protect it. Others simply believe spending U.S. taxpayer dollars overseas involves low-return investments on countries that gladly take our cash but then neither reform democratically nor reciprocate our largesse through political support on key issues.

As a result, staffing cuts dramatically shrank USAID’s full-time workforce of over 10,000 during the Vietnam era to barely 1,000 by 2005. USAID went from being an agency of mainly development experts to an agency of contracting officers reliant more and more on others to do the work.1 Compound these issues with the post-9/11 spate of international development initiatives, which many believe were aimed at sidelining USAID, including PEPFAR, MCC, and MEPI, and it is not hard to comprehend why USAID ranked in the bottom half in a recent survey of Best Places to Work in the Federal Government.2 As Figure 1 shows, all is not lost.

Beginning in 2008, with White House support and congressional backing, USAID’s Development Leadership Ini-

tiative (DLI) began a rapid increase in the number of USAID Foreign Service Officers with 1,200 new hires in five years. While many in this influx were hired as specialists in various fields of development, scores were brought on to help relieve the contracting workload— a workload where procurement action lead times of more than a year are the norm, rather than the exception.

The Situation–Aggressive Hiring Imbalances Workforce Experience

As Figure 2 demonstrates, in fiscal year 1998 USAID had a total of 143 contracting specialists. By fiscal year 2013, thanks in large part to DLI hir-

ing, there were more than 300; however, of these, nearly 130 contracting specialists had less than 5 years of service.

The current contracting workforce demographics offer a mixed bag. On the plus side, this new cohort of workers allows USAID to reevaluate and revamp the training and education regime for these workers, giving them the tools and skills necessary to succeed in today’s increasingly complex contracting environment. However, the influx of new and untested workers also creates the risk of less experienced contract management having greater responsibility over contract evaluations. One particular outcome of concern in this new scenario continued on page 14

Original DLI Annual Hiring Goals 400 350 300 Number of Employees

250 200 150 100 50 0

FY08

FY09

FY10

FY11

FY12

Figure 1. Source: GAO report 10-496, USAID Needs to Improve Its Strategic Planning to Address Current and Future Workforce Needs, www.gao.gov/new.items/d10496.pdf

For an excellent history regarding the evolution of U.S. foreign assistance see “50 Years in Development: How Private Companies Adapt & Deliver” written by Tony Barclay and published by PSC. It is available at http://www.pscouncil.org/c/c/InternationalDevelopmentTaskForce/InternationalDevelopmentInitiative/50_Years_in_Development__How_Private_Companies_Adapt___Deliver.aspx 2 http://bestplacestowork.org/BPTW/rankings/overall/mid 1

Professional Services Council

Service Contractor / March 2014 / 13

from page 13

USAID Contracting Workforce 350 300

Number of Contract Specialists (occupational category 1102)

is the misidentification of the appropriate vehicle for projects, i.e. designating a program for assistance (through a grant process) rather than acquisition (via a contract) and vice versa.

Looking at this another way (as shown in Figure 3), in 1998, less than 5 percent of the USAID contracting workforce had less than 5 years of service; by 2013, that proportion had risen to over 40 percent. This increase in inexperienced workers comes hand-in-hand with a decrease in the proportion of workers with more experience, often referred to as the “next generation of leadership.” In 1998, midcareer contracting professionals, those with 10-29 years of experience, comprised 69 percent of the contracting workforce. By 2013, that number dropped to 29 percent. This dearth of midcareer contracting professionals creates a hollowed out workforce, often lacking the skills to successfully implement complex acquisitions.

While these demographic changes are especially acute at USAID, this challenge is not unique to the agency. Over the last 15 years the government-wide

250 200

Years of Service 35+

150

30-34 25-29 20-24

100

15-19 10-14 5-9

50

0-4

0

FY98

FY99

FY00

FY01

FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

Figure 2. Source: PSC analysis of OPM Fedscope data as of September 2013, the latest data available

demographics of the contracting workforce have shifted in a similar pattern to USAID.3 In 1998 less than 5 percent of the government-wide contracting workforce has less than 5 years of service, up to 28 percent in 2013—still 12 percent below USAID. Reevaluating the training and development of this young contracting workforce is a government-

wide challenge. However, the importance of contracting to the execution of USAID’s mission, along with the exceptional complexity of USAID acquisition requirements, makes this challenge especially pertinent for USAID, while also making the potential gains of seizing this opportunity so much greater.

Distribution of USAID Contracting Workforce by Years of Service Percentage of Each Year’s Total USAID Contracting Workforce (occupational category 1102)

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

0-4

5-9

10-14

15-19

20-24

25-29

30-34

35+

Years of Service Figure 3. Source: PSC analysis of OPM Fedscope data as of September 2013, the latest data available

14 / Service Contractor / March 2014

Professional Services Council

An inexperienced contracting courages extensive communication workforce runs the risk of reducing between agency officials and their the quality of the solutions USAID industry partners in ways which This increase in acquires from its industry partners. do not create conflict of interest While the FAR provides contractissues. The current lack of commuinexperienced workers ing officers (COs) with a variety nication—brought about in large comes hand-in-hand with a of contracting options to facilitate part by an overly rigid interpretadecrease in the proportion of the best purchase of goods and tion of the FAR by USAID’s new services, contracting officers with COs—directly reduces collaboworkers with more experience, less experience may be less likely to ration between the agency and often referred to as the capitalize on these flexibilities and its implementing partners, and not fully tap the creativity allowed ultimately reduces the quality of for in the FAR. This becomes espeacquisitions. This desire on the cially problematic if, by necessity, part of the marketplace for greater inexperienced contracting officers communication with the client are given responsibility for comwill no doubt be incorrectly interplex acquisition which should be preted by some outsiders as an atreserved for more seasoned employees. The net result can tempt to provide vendors with an inside edge and even violate be purchasing solutions that do not always offer the U.S. the law, but this could not be further from the truth. Indeed, taxpayer the best value. These workers should be encourthe Department of Defense, certainly no stranger to contract aged to use the full flexibility provided for in the FAR, as scrutiny, sees robust communication between the contracting well as common business acumen, to strategically manage workforce and its implementing partners as a vital component USAID’s implementing partners. of successful acquisitions and had been strongly pushing the A recurring example of the contracting workforce’s inexOffice of Management and Budget’s “Mythbusters” initiative4 to better educate their contracting officers on the benefit, and perience hampering the acquisition process can be seen in permissibility, of communicating with industry. A similar inicontracting officers’ hesitance to communicate with their industry partners. The FAR in sections 10.002 and 15.201en- tiative at USAID, clearly educating the contracting workforce

“next generation of leadership.”

continued page 16

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Service Contractor / March 2014 / 15

from page 15

on permissible communication, would allow implementing partners to better fulfill the needs of their customer.

The objective of the Agency’s design process and particularly the desire for Acquisition and Award professionals to be a part of the process from the start (emphasis added) is to strategically select approaches to achieving sustainable project results that utilize the most appropriate set of implementing activities.5

Solution – Communication, Communication, Communication

USAID has a unique advantage with its contracting workforce as many of its employees are drawn to the agency due to its unique international development mission. A better functioning acquisition system not only saves the taxpayer money, but also directly improves the quality of the outcomes the agency is pursuing, which in turn demonstrably improves the lives of others around the globe USAID is tasked to help.

Case studies of the successes and failures of both International Development Companies (IDCs) and NGOs need to be studied by inexperienced contracting specialists so they can better understand what works and what does not. This is particularly crucial if USAID truly intends to bring COs in at the beginning of the process—a move that will no doubt boost morale by challenging COs to create, not just implement—and will bring their expertise to the table before they have to address unintended consequences. As USAID’s Director of the Office of Acquisition and Assistance Aman Djahanbani reinforced in his November 2, 2013 memorandum titled “The Role of Contracting Officers/Agreement Officers as Development Professionals in Project Design and Choice of Implementing Mechanisms:”

Similarly, providing greater access during Contractor Officer training modules to representatives from both the IDC and NGO communities would help to eliminate the various misconceptions between USAID and its implementing partners. COs who understand better the internal workings and business models of the private and non-profit worlds will make more informed and better decisions.

Paul Foldi is the Director of International Development Affairs at PSC. PSC Policy Associate Matthew Taylor assisted in the research for this article.

For an evaluation of the entire contracting workforce, see PSC’s 2013 Leadership Commission Report “From Crisis to Opportunity: Creating a New Era of Government Efficiency, Innovation and Performance,” available at http://www.pscouncil. org/c/p/2013_Commission_Report/2013_Commission_Report.aspx 4 See “DoD Official Pushing Back Against Contracting Myths,” November 18, 2013 Federal Times http://www.federaltimes.com/article/20131118/DEPARTMENTS01/311180004/1001 5 The Role of Contracting Officers/Agreement Officers as Development Professionals in Project Design and Choice of Implementing Mechanisms http://www.pscouncil.org/ CommitteesandTaskForces/InternationalDevelopmentTaskForce/IDTF_agency_and_ cong._materials/OAA_Memo_-_Choice_of_Implementing_Mechanism.aspx 3

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11:55 AM Professional 3/8/13 Services Council

John Goodman

continued from pg. 7

hire at all levels—from recent graduates to experienced hires—so we can deliver the right skills to our clients. At the entry level, we look for people who have tremendous potential and then invest to ramp up specific skills required for their roles. At the experienced level, we look for individuals who bring great skills and have demonstrated adaptability. In this regard, we are proud of our track record in bringing former military personnel into our ranks.

We invest heavily in training in the classroom and on-line so that our people have the knowledge and skills to leverage the latest technologies to benefit our clients. We offer an array of courses, often taught by our own leaders, which are tailored to an employee’s interest, function, and career level. We pride ourselves on the ability to rapidly build skills across the workforce and we take advantage of every opportunity to do so. During the recent shutdown of the federal government, for example, our impacted Accenture employees took to their cell phones, laptops, and classrooms to complete thousands of hours of training in hot skill areas, such as cloud, mobility, and Java. Retooling in the latest technologies keeps our people relevant and enables us to rapidly redeploy our workforce to respond to a dynamic market.

Susanna Mudge

We focus not just on developing our employees’ skills, but also building their careers. We believe that providing our employees with exciting work and challenging them to take on more responsibility is key to employee retention. Every employee has a career counselor that helps him or her identify the right assignment and the right time to take on a new assignment. Career counselors provide regular, consistent feedback on work performance and skill development to help our employees prepare for promotion and move effectively between assignments. Because we have long relationships with our federal clients, our employees can develop and apply functional skills across agencies and build deep industry knowledge within agencies.

Professional growth and development are integral to the success of both Accenture and the clients we serve. Making sure our employees take full advantage of the training, mentoring, civic engagement and leadership opportunities at every step of their careers translates into long, productive careers at Accenture and a level of commitment and organizational talent that will continue to provide innovative solutions in a cost effective manner to our clients. 3

continued from pg. 7

for International Development. We deliver capacity-building support in developing countries, from a medical supply chain initiative in Kenya to a primary-level reading project in Pakistan.

Staff surveys show that 97 percent of our employees align with our mission. Because our employees believe so strongly in our work, we consider it to be crucial that we invest in them and their careers in international development. As a result, our employees are well-positioned to deliver high-quality service to our clients and beneficiaries.

We apply a “latticed” approach to professional development, so we encourage our employees to move horizontally, vertically, and diagonally throughout the organization. The typical path of a successful employee weaves throughout our business units, support units, and field offices. To ensure employees are ready for those transitions, we have developed a number of tools to support them.

Invest in Training

We have invested heavily in systems and practices designed to help our employees simultaneously grow as professionals, become better able to meet client demands, and achieve development impact in the field. We offer a wide range of internal training classes that cover management and leadership, project management, and business development. In 2013 alone, we offered nearly 150 training courses to employees. One relevant example is our grants practicum, which runs for 10 weeks. Once an employee finishes the course, he or she can begin to search for the right opportunity to apply this new and applicable skill on one of our projects. Our

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focus on training is not only to benefit employees just beginning their careers. As our clients’ needs change, we have to adjust. Our investment in training employees at all levels to take on new and diverse roles allows them to develop new marketable skills and take their careers in new directions.

Invest in Mentoring

At the core of our internal structure is the project management unit (PMU), which includes, at minimum, a director (senior), a manager (mid-level), and an associate (junior). These small teams maintain our relatively flat structure, support our field teams effectively, and also allow junior staff to work sideby-side with more experienced professionals, learning technical skills that position them well for future direct client support.

We also invest in training assignments, which pair a junior person with an interest in a particular field, with a more experienced professional as they do direct billable work for a client.

Our approach does present challenges. Because we encourage employees to move throughout our company, we are in a near constant state of transition, and we must balance that against the need to provide consistent, high-quality service to our client and field offices. But we believe those challenges are well worth the result: a committed, engaged, talented group of employees. In the end, we have found that this model not only provides our employees with exciting and meaningful professional development opportunities, but improves our ability to deliver on our mission to our clients and beneficiaries. 3 Service Contractor / March 2014 / 17

Where Do We Go From Here:

Dispatches from the CIDC Conference

CIDC Chair Jim Boomgard of DAI kicks off the 2013 CIDC Conference before a packed ballroom at the Mayflower Hotel in Washington, D.C. on Dec. 4.

“A Unique Lot,” IDCs look forward to a year of dialogue, partnership

18 / Service Contractor / March 2014

The following is an edited version of the prepared opening comments Council of International Development Companies (CIDC) Chair Jim Boomgard, president and CEO of DAI, delivered at the first CIDC Conference on December 4.

T

hose of us in the development field are a unique lot. There is far more that binds us than separates us—irrespective of our organizational affiliation or whether we are a buyer or a seller of services. We are passionate about doing good. None of us decided to devote their career to development because it was the wisest financial or business play. We are committed to the global mission of eradicating poverty and suffering. From what I have seen over my 30 years in the business, we can be proud of the work we have done and are continuing to do today.

CIDC members share the conviction that our customers and our stakeholders are best served by free enterprise, market forces and competition. This means that we are in the business of adapting to change.

We are not so different from other professionals—doctors, lawyers, and architects—who must continuously learn, adapt and innovate to exceed their customers’ expectations and have a lasting impact in their respective fields.

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lenging; the problems being addressed have gotten more complex; and the level of scrutiny and oversight is unprecedented.

Our teams on the front lines of development recognize and have embraced these changes. They have been instrumental is leading some and have adapted well to others as our world has evolved. We can be certain of one thing—change will continue.

We rarely do development work on our own account—we compete for the opportunity to supply the technical expertise needed for effective project implementation. We exist to help our customers achieve their development goals.

Our ability to achieve our own development mission is inextricably connected with the effectiveness of our customers in achieving theirs. We are strong and consistent advocates for a strong and properly funded U.S. foreign assistance program.

Success of the development mission depends on strategy, program design, the quality and motivation of all of the team members, and, importantly, a shared realism about what sustainable development results can be accomplished in what time frame and at what cost. Our greatest development successes have come when the full team—donors, governments, the private sector, civil society, overseers and the taxpayers that fund our work—have worked in unison toward a common goal. How you do development work is of equal importance to what work you choose to do.

CIDC is one tool that we can use to fine tune the alignment between our companies, customers and stakeholders and improve the outcome of the development enterprise. There are some specific areas where we need to focus attention: • We write proposals in response to specific designs, terms of reference and requests for specific services. Well-conceived, practical, and fresher designs always result in better projects and outcomes.

Our members have come from many different starting points. We are not, as some have suggested, products of government outsourcing and the war economy. Tony Barclay, former CEO of DAI, wrote a paper for the CIDC that reminds us of the history of our industry. It is well worth a read.

The expertise housed in our businesses is impressive. We have been a valuable and valued partner of USAID, other governments and the private sector for nearly 50 years. Our collective capacity represents an important strategic export of the United States.

Virtually all of our enterprises began as small businesses.

CIDC is a heterogeneous group of single person enterprises, small companies, medium firms, and divisions of larger companies. We have a shared interest in a level competitive playing field for firms of all sizes—a playing field that ensures that successful performance is rewarded. The high cost of a long and uncertain buying cycle and the significant burden of satisfying the compliance requirements of multiple regulators are challenges for all of us, but especially for smaller companies.

Development work has evolved significantly over the past 20 years. There are more and different stakeholders; partners are more sophisticated; teams are more local; environments are more chalProfessional Services Council

• Development is an uncertain process with sometimes unpredictable outcomes. Failure holds a rich harvest of learning. Innovation and adaptation are hallmark features of practically every successful development effort. Unfortunately, we are all dealing with an audit and oversight environment that discourages risk taking, absorbs considerable scarce resources, and presumes that failure is automatically fraud, waste or abuse.

• The need to creatively engage with local actors and nontraditional partners has never been greater, but is constrained by complicated regulatory hurdles and high transaction costs. We must seek an acceptable balance between engaging the right partners for innovation and change and processes designed for control.

• And, our ability to create sustainable development outcomes can be compromised by the need to produce short-run measurable outputs that may or may not be consistent with the systemic changes required to spur genuine and sustainable change. We need to pay more attention to measuring and documenting progress along the road of achieving meaningful long-term sustainable development results.

These are just a few of the challenges that can only be addressed with a constructive dialogue between our companies and our customers. 3 Service Contractor / March 2014 / 19

A Congressional Perspective on International Development Former House Foreign Affairs Committee Chairman Howard Berman delivered the following prepared remarks at the Council of International Development Companies Conference on December 4.

I

n the year since I left Congress, there are a lot of things I don’t miss, but I do regret that the task of foreign aid modernization and reform remains unfinished.

Role of IDCS

Over the past 50 years, international development companies have become integral to the development ecosystem. Your companies have the technical expertise, the local connections, and the spirit of innovation that our development efforts depend upon.

You work in some of the hardest places, under the most challenging circumstances, often without being able to take credit for your contributions, and without being adequately consulted about the design of projects you are asked to implement. Your staff often face personal hardships and dangers that we cannot ask of U.S. government employees. You have faced bombings, assassinations, kidnappings, and other deadly threats with great patriotism and profound courage.

All too often there have been political attacks on contractors and so-called “beltway bandits” that denigrate your contributions and your integrity, and this needs to come to a stop. I think it is important for our government, both the executive and legislative branches, to recognize the value of what you do and the skill with which you do it.

Importance of Foreign Assistance

We must remember the historic achievements that have occurred with the help of our foreign aid programs—the eradication of smallpox from the face of the earth, the Asian miracle that began with the green revolution, the millions of lives that have been saved, and the human rights that have been won. Of course, aid alone cannot solve all the world’s problems, but it is one of the best, safest and least expensive tools at our disposal.

Regrettably, over the past few years we have witnessed an increasingly destructive and divisive assault on our foreign assistance program and on U.S. international engagement more broadly.

In this period of belt-tightening and economic uncertainty, some seem to think that foreign assistance is a luxury we can no longer afford. However, with one out of five American jobs tied to international trade, and our fastest growing markets—accounting for roughly half of U.S. exports—located in developing countries, what we can’t afford is a course of isolation and retreat.

Today, more than ever, our health, security, and prosperity depend on a world in which basic human needs are met, fundamental rights and freedoms are respected, conflicts are resolved peacefully, and the world’s resources are used wisely. There is no escaping our obligations to help foster this environment. Not only are we morally bound to do so, but our economic and political interests demand that we address widespread poverty and chaos in the world.

The Budget Situation

In the first decade of the 21st century, especially after the tragic events of 9/11 and the two wars that followed, congress and the public began to understand that our national security could not be protected by the military alone. Our military leaders became some of the strongest champions for the importance of foreign aid and international development.

20 / Service Contractor / March 2014

In large part to meet new challenges in Iraq, Afghanistan and Pakistan, funds being managed by USAID more than doubled from fiscal year 2001 to fiscal year 2010, even after accounting for inflation. But since then, foreign assistance has leveled off and declined, and there does not appear to be any respite in sight.

We need to make sure that foreign operations are not given a bigger share of the forward-looking budget cuts, or a smaller share of next year’s total funding, than is presently the case.

The Reform Agenda

It is easy to find fault with the current system, but rather than taking cheap shots and mindlessly slashing programs, I believe it is incumbent upon us to find a responsible way to fix them.

In our efforts to modernize and reform the laws guiding foreign assistance, we operated from the assumption that there would be stronger and more consistent support for international operations if people understood what we were trying to achieve, and if we had clear evidence that it was working.

The broad outlines of the reforms we proposed—with the very helpful comments and guidance we received from many of you—are pretty straightforward: • Set clear and measurable goals, and a coherent strategy for reaching them.

• Improve monitoring and evaluation, so that decisions can be guided by facts and evidence.

• Make sure that stakeholders have a real say in designing and implementing programs in order to ensure sustainability.

• Be more open and transparent about what we are doing and spending, so that we can hold ourselves and our partners accountable for results.

Many of these reforms are already being implemented by the administration. Unfortunately, there seems to be a certain reluctance on the part of the administration to do real outreach and consultation with Congress, the private sector and the NGO community.

Without legislation, these reforms could be terminated or rolled back at any time. Proceeding without congressional buy-in only increases the chances that each initiative will be secondguessed, blocked or reversed.

I also believe that USAID would function more effectively and assistance would be better at achieving its goals if IDC implementers were brought in more at the project design phase rather than simply the implementation phase. While there are risks to consultation, the risks of not consulting are far greater: a backlash that triggers a wave of convoluted rules and tortuous procedures, leading to waste, inefficiency, and increasing paralysis.

The Deficit of Trust

For decades, USAID and its implementing partners worked hand-in-hand for the aid mission. The increased volume of work and visibility for USAID contractors in Iraq, Afghanistan and Pakistan created many opportunities for contractors, but also greater oversight from Congress, GAO, and the Wartime Contracting Commission which were single minded in their pursuit of “waste, fraud, and abuse.” The role of inspectors general and compliance Professional Services Council

officials have come to dominate the landscape and have put a chilling effect on the procurement and assistance system.

One byproduct has been that the administration seems to have lost trust in the integrity of contractors and NGOs, and these implementing partners have lost faith that some public officials will act in a fair and reliable manner. In this era of shrinking budgets and heightened scrutiny of international development, IDCs and NGOs are fighting with each other and with USAID, rather than working together to make aid more efficient and development more effective.

I’m concerned that this tension could put the entire development enterprise at risk, since USAID has no domestic constituency other than the companies of the CIDC and your NGO counterparts. It would be tragic if this climate of tension and mistrust were to result in a diminished commitment by Congress to the overall goals of international development and to the funding that is required to achieve them.

If U.S. efforts to promote inclusive and sustainable development are to be successful, there must be a rebuilding of mutual trust. This means greater competency and reliability in the agency’s administration of contracting laws and regulations, audits and investigations, and compliance programs. It also means an active effort on the part of contractors and NGOs to raise their own standards of conduct and responsibility. On this point, the contractors and the NGOs should be in alignment.

As CIDC says in its vision statement, “It is time to dispense with the false ‘binaries’—non-profit vs. for-profit, government vs.

non-government—so that we can focus on our common purpose: effective development.” I think that is exactly right. It is time to sit down with each other in a constructive fashion to identify areas of agreement to rebuild trust between the administration and industry.

One Possible Path Forward

So how do we get past this, and rebuild a true partnership between the administration and its implementing partners? I might suggest one idea for your consideration.

That idea is to foster a constructive dialogue between the administration and industry. This could take the form of a small, all-volunteer task force of agency professionals and industry leaders, where candid feedback and an exchange of ideas can occur without fear of retribution. This panel can focus on recommendation for the administration and industry to jointly pursue, such as: • The need for improving the quality of the contracting and compliance functions within the administration; • The value of greater industry input in shaping agency needs and source selection approaches; and • Ways that industry can create and promote best practices for compliance programs with the input of the administration, and which can serve as a safe harbor when contractors follow those practices.

I stand ready to assist in whatever way I can, and I salute you for your efforts, day in and day out, to carry out the challenging work of development. 3

Former Rep. Howard Berman, who chaired the House Foreign Affairs Committee, delivers the closing keynote to the 2013 CIDC Conference.

Professional Services Council

Service Contractor / March 2014 / 21

CIDC Co-Chair Jan Auman of TetraTech introduces USAID Administrator Rajiv Shah, the 2013 CIDC Conference’s opening keynote, on Dec. 4.

Eduardo Tugendhat of CARANA Corporation moderated a panel discussion on the “Role of IDCs in Achieving Programmatic Outcomes” with (from left to right) Linda Nemec of Accenture, Elizabeth Warfield of USAID and Deidre White of Pyxera Group, during the 2013 CIDC Conference on Dec. 4.

USAID Administrator Rajiv Shah delivers the opening keynote at the 2013 CIDC Conference on Dec. 4.

Asif Shaikh, former CEO of IRG (right) interviews USAID Administrator Rajiv Shah during the dialogue portion of his opening keynote to the 2013 CIDC Conference on Dec. 4.

A PSC member asks a question during the 2013 CIDC Conference on Dec. 4.

Susanna Mudge of Chemonics (second left), moderated a panel discussion on “IDC Trends and Opportunities” with (from left to right) Susan Reichle of USAID, Nilmini Gunaratne Rubin of the U.S. House Foreign Affairs Committee, and Raj Kumar of DEVEX, during the 2013 CIDC Conference on Dec. 4.

22 / Service Contractor / March 2014

Professional Services Council

Bill Tracker: 113th Congress-Second Session (2014) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Cyber Intelligence Sharing and Protection Act, Rogers (R-MI)

Summary Would establish cyber threat intelligence sharing procedures between the intelligence community and certain private sector entities.

STATUS Passed by the House (288-127) on 4/18/2013.

H.R. 624

H.R. 731

Protecting Americans Abroad Act, Radel (R-FL)

H.R. 735

Federal Protective Service Improvement and Accountability Act of 2013, Thompson (D-MS)

Summary

STATUS

Summary

STATUS

Would allow the State Department to use best-value contracting in awarding local guard or protective service contracts in high-risk areas abroad under the diplomatic security program.

Referred to Foreign Affairs Committee on 2/14/2013. Related bills: H.R. 2723, H.R. 2848, S.1386.

Would create within DHS the Federal Protective Service (FPS) a contract oversight force to monitor contractors providing security services through the FPS and ensure that such contractors meet training and certification requirements. Would require the DHS to establish a one-year pilot program to research the advantages of converting guard positions at high-risk federal facilities protected by the FPS from contractors to federal employees.

Referred to Homeland Security and Transportation and Infrastructure Committees on 2/14/2013.

H.R. 882 Contracting and Tax Accountability Act of 2013, Chaffetz (R-UT)

Summary

STATUS

Would propose for debarment any contractor with an unpaid, seriously delinquent tax debt.

Would require prospective contractors to certify that the contractor has no unpaid, seriously delinquent tax debt.

Passed by the House (407-0) on 4/15/2013.

H.R. 1163 Federal Information Security Amendments Act of 2013, Issa (R-CA)

Summary Seeks to enhance the governmentwide management, oversight, and coordination of information security risks, including contractor-related systems and information.

STATUS Passed the House (416-0) on 4/16/2013.

Federal Information Technology Acquisition Reform Act, Issa (R-CA)

H.R. 1232

Seeks to reform federal government acquisition of information technology by providing additional Summary

authorities to agency CIOs, consolidating data centers, enhancing IT spending tracking and strategic sourcing, and creating assisted acquisition centers of excellence within the federal agencies.

STATUS Passed the House on 2/25/14. Related bills: S.1611, S.1843.

Global Partnerships Act of 2013, Connolly (D-VA)

H.R. 1793

Seeks to streamline and improve USAID’s procurement process, to maximize transparency, Summary

STATUS

efficiency, simplicity and speed. It also expresses the Congress’ preference for strong competition and a wide range of nonprofit and for-profit partners in development initiatives.

Referred to Foreign Affairs, Oversight and Government Reform, Rules, and Ways and Means Committees on 4/26/2013.

H.R. 2008 Stop Taxing American Assistance to Afghanistan Act, Welch (D-VT)

Summary

STATUS

Would prohibit U.S. assistance for Afghanistan unless the two governments enter into a bilateral agreement that provides that work performed in Afghanistan by U. S. contractors is exempt from taxation by the government of Afghanistan.

Referred to Foreign Affairs Committee on 5/15/2013.

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Service Contractor / March 2014 / 23

Bill Tracker: 113th Congress-Second Session (2014) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 2061 Digital Accountability and Transparency Act of 2013, Issa (R-CA)

Summary

STATUS

Would require the director of OMB to establish highly detailed, government-wide financial data standards for federal funds. Would require a review of existing financial reporting requirements to consolidate and eliminate duplicative reporting. Would establish a pilot program authorized to collect detailed reports from federal fund recipients and to identify barriers and burdens related to data collection related to federal spending.

Passed the House (388-1) on 11/18/2013. Related bill: S.994.

Civilian Contractors Engaged in Intelligence Activities Reduction Act of 2013, Jackson Lee (D-TX)

H.R. 2434

Would mandate a 25 percent reduction in the number of contractors with top secret security Summary

STATUS

clearances that are engaged in intelligence activities. Would direct the Director of National Intelligence to conduct a study to determine the extent to which contractors are used in the conduct of intelligence activities and the type of information that they can access.

Referred to Intelligence Committee on 6/19/2013.

H.R. 2444 Commonsense Contractor Compensation Act of 2013, Tonko (D-NY)

Summary Would limit the cap on allowable contractor compensation to the salary of the vice president, $230,700.

STATUS Referred to Oversight and Government Reform and Armed Services Committees on 6/19/2013.

Related bills: H.R. 3304, H.R. 3547, S. 1192.

H.R. 2606 Stabilization and Reconstruction Integration Act of 2013, Stockman (R-TX)

Summary Would establish an Office for Contingency Operations to consolidate reponsibility for “overseas stability and reconstruction operations” currently divided among the Department of Defense, Department of State, and USAID. The director of the Office for Contingency Operations would report to the Secretary of State and the Secretary of Defense.

STATUS Referred to Armed Services, Foreign Affairs, and Oversight and Government Reform Committees on 6/28/2013.

H.R. 2638 Foreign Aid Transparency and Accountability Act of 2013, Poe (R-TX)

Summary

STATUS

Would require the development of guidelines regarding the establishment of measurable goals, performance metrics, and monitoring and evaluation plans that can be applied with reasonable consistency to U.S. foreign assistance.

Referred to Foreign Affairs Committee on 7/10/2013. Related bill: S. 1271.

National Aeronautics and Space Administration Authorization Act of 2013, Palazzo (R-MS)

H.R. 2687

Would authorize $16.9 billion in discretionary spending for NASA for fiscal year 2014. Includes Summary

STATUS

contracting-related provisions from previous years, and a new section that would prevent contracts from being awarded to contractors who have been convicted within the last three years or are presently indicted for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Reported by the Science, Space, and Technology Committee on 7/18/2013.

H.R. 2719 Transportation Security Acquisition Reform Act, Hudson (R-NC)

Summary

STATUS

Would direct the administrator of the Transportation Security Administration to develop a strategic multiyear technology acquisition plan. Would require the agency to report on the plan’s implementation as well as TSA’s goals for small business contracting.

Passed by the House (416-0) on 12/3/2013. Related bill: S. 1893.

24 / Service Contractor / March 2014

Professional Services Council

Bill Tracker: 113th Congress-Second Session (2014) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 2723 Embassy Security and Enhancement Act of 2013, Engel (D-NY)

Summary

STATUS

Would allow the Secretary of State to award local guard contracts on the basis of best value. Would reduce the bid price of proposals received from American citizens and joint ventures by 10 percent.

Referred to Foreign Affairs and Oversight and Government Reform Committees on 7/18/2013.

Related bills: H.R. 731, H.R. 1386, H.R. 2848, S.1386.

H.R. 2848

Department of State Operations and Embassy Security Authorization Act, FY 2014, Royce (R-CA)

Summary Would allow the Department of State to use cost technical trade off source selection criteria for the

selection of local guard services under the Diplomatic Security Program when such services are to be provided in an area that qualifies as a “high risk, high threat post”.

STATUS Passed by the House (284-37) on 9/29/2013. Related bills: H.R. 731, H.R. 2723, S. 1386.

H.R. 2860

OPM IG Act, Farenthold (R-TX)

Summary Would allow the inspector general of OPM to use money from the revolving fund for audits, investigations and oversight of security clearance process.

STATUS Became Public Law 113-80 on 2/12/2014.

H.R. 2912 Afghanistan Suspension and Debarment Reform Act, Chaffetz (R-UT)

Summary

STATUS

Would give the Special Inspector General for Afghanistan Reconstruction (SIGAR) suspension and debarment authority for foreign and Afghan contractors operating in Afghanistan when agencies fail to initiate a “timely” review of contractors identified by SIGAR. SIGAR would have the authority to make exceptions that permit a debarred or suspended contractor to be awarded new contracts in specific cases.

Referred to Foreign Affairs and Oversight and Government Reform Committees on 8/1/2013.

Summary

STATUS

Would establish a National Office for Cyberspace to coordinate cybersecurity efforts. Would prohibit agencies from entering into contracts involving information technology without including in the contract requirements to provide effective security for that information. Would require contractors and subcontractors that operate or use an information system or information infrastructure on behalf of an agency to conduct an annual audit to assess compliance with cybersecurity regulations.

Referred to Homeland Security and Oversight and Government Affairs Committees on 8/2/2013.

H.R. 3032 Executive Cyberspace Coordination Act of 2013, Langevin (D-RI)

H.R. 3304 National Defense Authorization Act for Fiscal Year 2014, Deutch (R-FL)

Summary

STATUS

NEW

Contains a number of provisions affecting the contracting community including provisions regarding contractor compensation caps, small business subcontracting goals, and taxes levied by the Afghan government on DoD contractors. For more details, please see PSC’s summary and analysis of laws passed in 2013, available at www.pscouncil.org.

Became Public Law 113-66 on 12/26/2013.

H.R. 3345 SUSPEND Act, Issa (R-CA)

Summary

STATUS

Would establish a Board of Suspension and Debarment within the GSA to act as a centralized body to manage all executive agency suspension and debarment activities. Provides waiver authority for agencies that meet strict metrics. Retains, and expands, the authorities of the Interagency Suspension and Debarment Committee. Requires public posting of suspension and debarment officials’ decisions not to take suspension or debarment action on cases referred to the suspension and debarment official.

Reported by Oversight and Government Reform Committee on 10/29/2013.

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Service Contractor / March 2014 / 25

Bill Tracker: 113th Congress-Second Session (2014) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 3381 Intelligence Authorization Act for Fiscal Year 2014, Rogers (R-MI)

Summary

STATUS

Would fund all U.S. intelligence activities across 16 different agencies through fiscal year 2014.

Would require that intelligence contractors develop and operate a security plan consistent with standards to be established by the Director of National Intelligence (DNI). Would require that cleared contractor personnel be monitored continuously according to DNI standards, and require the development of information sharing procedures between the federal and private intelligence communities to assist with continuous evaluations.

Reported by Intelligence Committee on 11/25/2013.

H.R. 3547 Consolidated Appropriations Act, 2014, Lamar (R-TX)

Summary

STATUS

NEW

NEW

Funds all federal agencies for the remainder of fiscal year 2014. Continues several provisions from previous appropriations acts, including those that restrict contract awards to entities that have unpaid tax liabilities or criminal convictions unless the agency has considered suspending or debarring the company. Also caps the allowable cost for contractor compensation at $487,000. See PSC’s online summary and analysis for more information.

Became Public Law 113-76 on 1/17/2014.

H.R. 3696

National Cybersecurity and Critical Infrastructure Protection Act of 2013, McCaul (R-TX) NEW

Summary Would provide liability coverage for providers of approved cybersecurity technologies that defend against cyber incidents. Would require DHS to assess the effectiveness of its existing authorities for acquiring cybersecurity technologies to ensure that such processes and authorities are capable of meeting the department’s cybersecurity missions. Would establish formal and meaningful information sharing procedures between DHS and private sector entities.

STATUS Reported by the House Homeland Security Committee on 2/5/2014.

H.R. 4022 Security Clearance Reform Act of 2014, Lynch (D-MA)

NEW

Summary Would require that the president submit to Congress a plan to reform the security clearance process based on a shift to continuous evaluation and monitoring of local government records, commercially available information such as credit history and foreign travel, and social media, among other information. Would require that certain federal funds be withheld from local governments that do not comply with requests for records by federal agencies or contractors performing background investigations on their behalf. Would require that only federal employees perform agency final quality reviews of background investigations, background investigation interviews with the individual seeking a clearance, and background investigations for clearances at the top secret level or higher. Would prohibit the award for investigative support services to a company that also holds a contract to perform background investigation fieldwork services, and vice versa.

STATUS Referred to Oversight and Government Reform and Judiciary Committees on 2/10/2014.

Assuring Contracting Equity, T. Udall (D-NM)

Summary Would raise the government-wide small business contracting goal to 25 percent from 23 percent and would also increase the goals of certain small business subcategories to 10 percent. Would also limit to two the number of small business subcategories in which agencies could take credit for small business performance.

STATUS Referred to Small Business and Entrepreneurship Committee on 1/31/2013.

S. 196

26 / Service Contractor / March 2014

Professional Services Council

Bill Tracker: 113th Congress-Second Session (2014) NEW

Newly introduced since last issue

S. 994

Summary

STATUS

Major action taken since last issue

Bill became law since last issue

Digital Accountability and Transparency Act of 2013, Warner (D-VA) Would require the director of OMB to establish highly detailed, government-wide financial data standards for federal funds. Would require a review of existing financial reporting requirements to consolidate and eliminate duplicative reporting. Would establish a pilot program authorized to collect detailed reports from federal fund recipients and to identify barriers and burdens related to data collection related to federal spending.

Reported by the Homeland Security and Governmental Affairs Committee on 11/6/2013. Related bill: H.R. 2061.

S. 1192

Commonsense Contractor Compensation Act of 2013, Boxer (D-CA)

Summary Would limit the cap on allowable contractor compensation to the salary of the vice president, $230,700.

STATUS Referred to Homeland Security and Governmental Affairs Committee on 6/19/2013. Related bills: H.R. 3304, H.R.3547, H.R. 2444.

Foreign Aid Transparency and Accountability Act of 2013, Rubio (R-FL)

Summary Would require the development of guidelines regarding the establishment of measurable goals, performance metrics, and monitoring and evaluation plans that can be applied with reasonable consistency to U.S. foreign assistance.

STATUS Reported by Foreign Relations Committee on 12/20/2013. Related bill: H.R. 2638.

S. 1271

S. 1276

Security Clearance Oversight and Reform Enhancement (SCORE) Act, Tester (D-MT)

Summary Would allow the inspector general of OPM to use money from the revolving fund for audits, investigations and oversight of security clearance process.

STATUS Became P.L. 113-80 on 2/12/2014. Related bill: H.R. 2860.

Chris Stevens, Sean Smith, Tyrone Woods, and Glen Doherty Embassy Security, Threat NEW

Mitigation, and Personnel Protection Act of 2013, Menendez (D-NJ)

Summary Would allow the use of cost-technical tradeoff analysis as the basis for source selection criteria for local guard contracts under the Diplomatic Security Program and would provide a 10 percent price advantage for U.S. firms’ proposals for such work. Would also restrict the ability of interested parties to file a protest against a Department of State contract awarded under non-competitive procedures for an emergency security requirement.

STATUS Reported by Foreign Relations Committee on 12/9/2013. Related bills: H.R. 731, H.R. 2723, H.R. 2848.

Federal Data Center Consolidation Act of 2013, Bennet (D-CO)

Summary Would require covered federal agencies to conduct assessments of federal data centers, develop data center consolidation and optimization plans, and measure cost savings associated with data center optimization initiatives.

STATUS Reported by the Homeland Security and Governmental Affairs Committee on 11/2/2013. Related bill: H.R. 1232.

Enhanced Security Clearance Act of 2013, Collins (R-ME)

Summary Would establish an enhanced security clearance system by directing modifications to the existing security clearance database and would require more frequent security clearance reviews using the enhanced security clearance system.

STATUS Referred to Homeland Security and Governmental Affairs Committee on 10/30/2013.

S. 1386

S. 1611

S. 1618

Professional Services Council

Service Contractor / March 2014 / 27

Bill Tracker: 113th Congress-Second Session (2014) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

S. 1744

Security Clearance Accountability, Reform, and Enhancement Act, Tester (D-MT) NEW

Summary Would terminate or debar, respectively, any individual OPM employ directly or through a contract if found to be intentionally involved in misconduct affecting the integrity of a background investigation. Would automatically place on administrative leave or suspend, respectively, any individual employed directly by or through a contract of OPM during an investigation to determine whether that person was intentionally involved in misconduct. The bill would also require that contracts for background investigative services include a provision requiring the company to report any misconduct affecting the integrity of an investigation within 90 days of the discovery of the misconduct. Would mandate that the president review and update agency guidance regarding what positions require clearances every five years.

STATUS Referred to Homeland Security and Governmental Affairs Committee on 11/20/2013.

Federal Information Technology Savings, Accountability, and Transparency Act of 2013,

NEW Udall (D-NM)

Summary Would mandate that all federal agencies, with the exception of DoD, have only one Chief Information Officer, who would have authority over budget planning processes related to IT, programs including significant IT components, commercial items, and commercially available off-the-shelf items. Would grant each agency CIO hiring authority over personnel responsible for IT within the agency. Would designate the CIO Council as the lead interagency forum for the development and improvement of cross-agency IT-related policy and processes.

STATUS Referred to Homeland Security and Governmental Affairs Committee on 12/17/2013. Related bill: H.R. 1232.

Transportation Security Acquisition Reform Act, Ayotte (R-NH)

NEW

Summary Would require that the administrator of TSA develop a multiyear technology investment plan that, among other things, identifies (1) opportunities for public-private partnerships; (2) TSA’s acquisition workforce needs as required for the implementation of the multiyear plan; and (3) initiatives to streamline and clarify TSA’s acquisition process for businesses of all sizes. Would encourage the authors of the plan to include feedback from the private sector.

Would require the administrator of the TSA to submit to Congress a justification of any potential technology acquisition valued over $30 million.

STATUS Referred to Commerce, Science, and Transportation Committee on 12/20/2013. Related bill: H.R. 2719.

S. 1843

S. 1893

Stay up-to-date on the state of our industry and get engaged with PSC:

Schedule a

PSC Market & Policy Briefing or a Membership Engagement Session Visit bit.ly/PSCbriefing to schedule yours today!

28 / Service Contractor / March 2014

Professional Services Council

Navigating the Murky Waters of Service Contract Act Compliance in Multiple Award Schedule Contracting

by Jennifer Flickinger and Aaron Raddock, Baker Tilly and James J. Kelley, Morgan, Lewis and Bockius

I

n part one of this two-part series, we explored the pre-award issues with the application of the Service Contract Act (SCA or the act) to Multiple Award Schedule (MAS) contracts. Over the last three years, the General Services Administration (GSA) expanded its use of the SCA clause (FAR 52.222-41) in MAS contracts while questions and challenges for contractors continue to mount.

The contractor’s obligation to pay statutorily mandated wages and benefits not required on commercial contracts remains the central pre-award issue during negotiations. This conundrum continues to plague contractors after contract award when, despite this inherent disconnect, contractors must adhere to the contractual requirements.

In part two of the series, we discuss key post-award compliance issues, including the management of multiple wage determinations (WDs), location-based price variances at the task order (TO) level, and labor category compliance.

Illustration: Ana Eastep/Studio25

Index of WDs vs. WDs at the TO Level

GSA has begun to incorporate WDs into certain schedules, (e.g., MOBIS and PES), via an index of WDs.1 The index includes multiple WDs covering virtually all possible locations of performance throughout the United States, eliminating the need to incorporate a WD within

each TO. The purpose of the index is to streamline contract administration for the government customer and facilitate SCA compliance. Annually, GSA refreshes the index at the schedule level through contract modifications. Unfortunately, not all contracting officers (COs) are familiar with this process and continue to incorporate WDs within individual TOs. As a result, depending on the timing of the index refresh and TO issuance, a TO WD may conflict with the index,2 which requires the contractor to be diligent in its administration.

Many MAS contract solicitations state that the index of WDs incorporated in

the base contract takes “precedence over any WD revision number an agency incorporates into an RFQ at the task order level,”3 resulting in dissidence between a contractor and the CO who believes the TO WD should apply. Additionally, should the TO WD require higher wages, contractors have no mechanism for increasing MAS labor category prices to accommodate a higher WD. In part one, we noted that, depending on the price adjustment methodology selected, contractors can increase MAS prices for WD revisions; however, the WD revisions must affect the base contract to apply to subsequent task orders. continued on page 30

Professional Services Council

Service Contractor / March 2014 / 29

from page 29

Conversely, updates to an index of WDs (as opposed to a TO) can cause a funding shortage for ordering agencies unfamiliar with the process. When an index refresh takes place, (an action outside the control of the ordering agency), contractors who chose the price adjustment method under FAR 52.222434 can request an equitable adjustment.

However, the ordering agency may have insufficient funds to accommodate the request and the customer may refuse to provide additional funding.

Contractors must juggle the funding agency’s direction, uphold the requirements of the MAS contract and protect relationships with both the customer and MAS CO. Where disagreement exists, some contractors successfully educate the ordering CO by pointing to the MAS requirements. Should this fail, inviting the MAS CO into the conversation can help achieve a better understanding.

Finally contractors should communicate to customers that certain labor category prices are subject to change and request that they obtain sufficient funds to accommodate this possibility.

Task Order Pricing by Location

Contractors employing SCA-covered employees must pay wages and benefits based on the place of project performance. During the pre-award phase, contractors must identify one or more WDs that govern their SCA labor category prices. The resulting MAS prices, however, are generally fixed regardless of place of performance. When higher wages and benefits are required as a consequence of place of performance, the contractor must absorb the higher costs. However, if lower wages and benefits are required, language in the SCA matrix requires the contract to discount its schedule prices accordingly.5 Pre-award selection of the highest cost WD where work may be performed mitigates the contractor’s risk. However, this offers no protection against a higher cost WD applicable to an unanticipated work location or the variability of WD rates in work localities over the contract’s five year base and option periods. Some GSA CO’s allow for schedule pricing by location, eliminating the issue. However this is rare.

Where the contractor selects FAR 52.222-43 as its price adjustment method, the contractor will need to negotiate adjustments to both its MAS schedule and individual TOs. When the MAS schedule incorporates an index of WDs, this occurs after an index refresh and must be requested within 30 days.

Where no index is included and WDs are incorporated at the TO level, the contractor must evaluate whether the newly incorporated WD results prices in excess of the current schedule pricing. When this occurs, the contractor must negotiate an increase to MAS schedule pricing as well as submit a request for equitable adjustment to the TO CO. Limited understanding of SCA and how its mechanics affect MAS schedule pricing among COs often slows the process. Open communication, timely submission and well organized and complete price adjustment justifications are critical to success.

Labor Category Compliance

Qualifications of personnel fulfilling MAS labor categories have become a focus of the GSA’s Office of Inspector General

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Professional Services Council

(OIG) auditors. Schedule contractors must ensure that personnel meet the minimum qualifications (e.g., education, experience, certifications, security clearances, etc.) included in its contract labor category descriptions. SCA contractors face the same challenges, but must also align their MAS labor categories with the labor classifications established by the Department of Labor (DoL).

Contractors must pay SCA wages based upon the employee’s unique labor classification under the DoL’s Directory of Occupations as stipulated by the WD. Because DoL (not GSA) is the sole arbiter of SCA compliance, GSA’s approval of the contractor’s mapping between the Directory of Occupations and the MAS labor categories offered does not preclude an SCA

violation. SCA’s inclusion in schedules for professional services adds the challenge of mapping labor categories that do not always clearly fit within the Directory of Occupations. Some contractors implement robust processes and standard guidelines to crosswalk these different sets of labor categories, analyzing each individual contract action, including labor category or scope changes. In certain cases, when contractors cannot identify a good match between job duties performed and the Directory of Occupations, they may request a labor category conformance from DoL.

Conclusion

The disconnect between the SCA and MAS requirements creates many post-award compliance and profitability

challenges. Despite long awaited guidance, neither GSA nor DoL have provided any instruction or clarification to contractors.

Meanwhile, consequences of non-compliance have never been more severe. The correct choice for each contractor, pre- and post- award, will vary depending on the contractor’s unique circumstances. However, armed with the knowledge and awareness of the challenges, contractors can avoid pitfalls, educate their government customer, and better anticipate and manage risk.

Jennifer Flickinger is a director in Baker Tilly’s Government Contractor Advisory Services practice. Aaron Raddock is a manager in Baker Tilly’s Government Contractor Advisory Services practice. James J. Kelley is a partner in Morgan, Lewis & Bockius, where he is Co-Chair of the Firm’s Wage & Hour Practice.

The index is not included in all solicitations (e.g., IT Schedule 70). Without an index, the funding agency’s CO must incorporate the applicable WD for each TO. DoL revises SCA wage determinations periodically, as new health and welfare benefits or wage survey data become available. This usually occurs once per year sometime in June.

For multi-year procurements new wage determinations are incorporated into the contract each year on the anniversary date or no less than once every two years (29 CFR 4.145).

3 PES Solicitations TFTP-MC-990871-B posted June 7, 2013 4 The contract price or hourly labor rates will be adjusted to reflect the contractor’s actual increase or decrease in applicable wages and fringe benefits as a result of the Labor Department wage determination applicable on the anniversary date of the multiple year contract, or at the beginning of the renewal option period. The contractor shall notify the CO of any increase within 30 days after receiving a new wage determination. (FAR 52.222-43, Fair Labor Standards Act and Service Contract Act—Price Adjustment (Multiple Year and Option Contracts).

5 “Should the contractor perform in an area with lower SCA rates, resulting in lower wages paid, the task order prices will be discounted accordingly.” See MOBIS Solicitation TFTP-MC-000874-B, posted June 7, 2013.

1 2

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Service Contractor / March 2014 / 31

Policy Spotlight

Three Workforce Trends to Watch in 2014

by Alan Chvotkin, PSC Executive Vice President & Counsel

T

raditionally government professional services firms are judged by the quality of the people assigned to work on federal customer requirements. Over the last halfdecade, however, there has been significant growth in the use of technology to fulfill government needs. As a result, services firms are increasingly availing themselves of that technology to enhance the power of their people, which, in turn, is leading customers toward an “as a service” approach. Customer buying behaviors are also focusing more heavily on the price of performance. The upside is that companies may be able to do more with less, a prevalent theme under the ongoing budget pressure.

The challenge is to keep up with (or lead) the rapid pace of change, which means retaining and attracting a cutting-edge workforce. These marketplace shifts highlight three important workforce trends for companies to watch in 2014.

The first is how companies must continue to attract and retain talent for emerging skills—such as cybersecurity or medical services—under the heavy global competition for such skills and when the federal customer is often unwilling or unable to pay a premium for such skills. In an effort to pay less, we have seen agencies nominally scale back skills requirements in solicitations or impose arbitrary cost containment measures. Yet, innovation also remains a top priority for government, creating a disconnect between policies and priorities.

The second is how companies are responding to both the pressures and the opportunities from the “greening” of the contractor workforce. Contractor employee retirements are below the “normal” and expected levels because of the nation’s current jobless economic recovery and its sluggish commercial marketplace. Yet federal customer missions are increasingly demanding access to talent that does not exist in sufficient numbers in the current embedded contractor workforce. Therefore, recruiting and managing these newer employees requires different proposal submission and management supervision approaches for them. But many contractors and federal agencies are just beginning to appreciate these challenges and opportunities.

Finally, contractors have to implement a growing government compliance regime. From security clearance changes to new labor and contracting policy terms and conditions to increased enforcement protocols, the government is imposing an expanding set of burdens with an expectation of perfect execution, regardless of company size. In addition to the upfront compliance obligations, the consequences to the company of non-compliance have also significantly increased.

PSC has been in the forefront of the advocacy on many of these labor policy and contracting laws and regulations. We also provide numerous opportunities for company executives— across the broad spectrum of functional responsibilities—to hear directly from key government officials during regular association committee and task force meetings, to participate in the development of PSC’s comments on proposed legislation and regulations and in our educational programs regarding implementation. As always, we welcome member company suggestions for topics and areas of interest. 3

Photo: Frank_Peters/shutterstock.com

32 / Service Contractor / March 2014

Professional Services Council

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Committee Corner:

Human Resources and Labor Policy Committee

by Jeremy Madson, PSC Federal Affairs Manager

C

ontractor labor and hiring policy issues have continued to be in the spotlight early in 2014, and the revamped Human Resources and Labor Policy Committee (HRLPC) is at the center of PSC’s efforts to ensure that industry’s voice is heard for balanced, practical policies.

The first quarter of 2014 has already witnessed a number of significant developments in the labor policy arena. In January, President Obama used his State of the Union address to unveil his plan to use an executive order to increase the minimum wage federal contractors pay. On March 24, two final rules issued in September by the Office of Federal Contracts Compliance Programs will go into effect, enhancing contractor’s hiring and affirmative action obligations for individuals with disabilities and covered veterans. The disability rule sets a 7 percent goal for contractors’ employ-

Professional Services Council

Photo: Jirsak/shutterstock.com

34 / Service Contractor / March 2014

ment of persons with disabilities across all job categories and introduces numerous reporting and compliance mandates.

Coupled with ongoing “non-displacement” requirements for incumbent workers on successor contracts, expanded auditing and investigation activity at the Department of Labor (DoL) and other federal agencies, and a host of other new and ongoing initiatives, federal contractors continue to face a complex and often challenging environment.

Given these diverse and often disparate developments across the government landscape, the importance of PSC and the HRLPC as a conduit for conveying consensus industry viewpoints to government officials, and as a forum for companies and policymakers to meet face-to-face, has never been greater. At its first meeting of 2014, the committee welcomed OFCCP for an extensive dialogue on its upcoming hiring requirements, and both PSC and OFCPP pledged to remain engaged as the new rules take effect. The HRLPC will also continue its longstanding engagements with the military and civilian agency labor advisors, along with officials from DoL and its component divisions.

In addition to serving as a discussion forum with government officials, the HRLPC serves as the focal point for PSC’s policy and educational activities around the Service Contract Act (SCA), the Davis-Bacon Act, and the range of legislation and regulations governing contractor health, hiring, and safety practices. In 2013 PSC initiated a condensed “SCA for Executive” training program to provide contractor company leaders with a high-level overview of the many requirements and competitive considerations imposed by the statute, as a complement to PSC’s ongoing, detailed SCA training conducted in cooperation with the Labor Department. In 2014, under the aegis of the HRLPC, PSC will continue to explore areas in which PSC members may benefit from expert insight and training.

Under the leadership of long-time committee chair Al Corvigno of MARAL, LLC and new committee co-chair Anne Rohall of Tech Systems, Inc., the Human Resources and Labor Policy Committee will continue to be the premier venue for PSC members focused on critical HR and labor policy issues. 3

PSC’s Service Contract Act Training The Service Contract Act is one of the most technically challenging aspects of competing for the award of, and successfully administering a federal service contract.

SCA sets minimum pay and benefit rates for many service occupations.

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The SCA affects many different decisions made by many different people in a company. Everyone, from executive leadership to proposal writers, to accountants, project managers, and human resource specialists, needs to be conversant with the requirements of the act. This course will give your staff the knowledge to be SCAsavvy in opportunity identification, capture strategy, bid/no-bid decisions, contract pricing, contract price adjustments, wage determinations, and fringe benefit calculations.

PSC is pleased to offer the only SCA training conducted in partnership with the U.S. Department of Labor, Wage & Hour Division.

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Professional Services Council

Service Contractor / March 2014 / 35

MEMBER NEWS DAI Joins Forces with International Development Consultancy, HTSPE Ltd.

DAI expanded its European reach with the purchase of the British development firm HTSPE Ltd., which has project operations in 70 countries, the companies announced on December 31. HTSPE’s clients include U.K. Department for International Development, EuropeAid, and the World Bank and is implementing more than 200 projects worldwide in technical areas such as climate change, land tenure, governance, education, and monitoring and evaluation.

HTSPE is now part of DAI Europe Ltd. As a member of the DAI group, HTSPE will continue to do business under its current name and under the direction of HTSPE Managing Director Christopher Lockett, who will report to DAI Senior Vice President Julian Lob-Levyt.

Baker Tilly Partner Raina Rose Tagle honored as one of GWSCPA Women to Watch

Baker Tilly Partner Raina Rose Tagle was honored by the Greater Washington Society of CPAs (GWSCPA) as one of three 2013 Women to Watch Award recipients, the company announced December 12. Rose Tagle, who leads Baker Tilly’s Risk and Internal Audit Services and Higher Education practices, was recognized in the Experienced Leader category, which celebrates women who have “made notable contributions to the accounting profession, their organizations and the development of women CPAs as leaders.” This year’s Women to Watch awards are the first for the GWSCPA, which launched the program to “recognize women who exemplify the business case for female leadership in firms and industry.” Awards were presented in three categories: Community, Emerging, and Experienced.

In addition to Rose Tagle’s recognition, Theresa Bower, Senior Manager in Baker Tilly’s Tax and Assurance practice was honored with a nomination in the Emerging Leaders category. The nominations reflect Baker Tilly’s commitment to the advancement of women, exemplified by the firm’s Growth and Retention of Women (GROW) initiative.

GROW was designed to significantly enhance the recruitment, retention, development, and advancement of women by providing internal and external opportunities to network, share information, acquire skills, and develop rewarding professional relationships. Rose Tagle actively serves on Baker Tilly’s firm-wide GROW task force.

Vistronix Deepens Cyber Operations and Signals Processing Capabilities with Acquisition of Kimmich Software Systems, Inc. (KSSI)

Vistronix acquired Kimmich Software Systems, Inc. (KSSI), significantly expanding its technology solutions for the U.S. Intelligence Community, Vistronix announced on December 5. KSSI, a privately owned, Columbia, Md.-based company, offers cyber operations, signals processing, data analytics, software development and systems engineering solutions.

This acquisition deepens Vistronix’s cyber operations, big data and cloud computing expertise to provide industryleading capabilities that meet the evolving and complex needs of the intelligence community.

SPA Names Kirk Donald President and CEO

Systems Planning and Analysis, Inc. (SPA) has named Kirkland H. Donald as president and CEO, effective January 6, 2014. Retired Navy Admiral Kirk Donald joined SPA as executive vice president in June 2013 after a 37-year career in the U.S. Navy. His last assignment, for eight years, was director of Naval Nuclear Propulsion and Deputy Administrator, National Nuclear Security Administration’s Naval Reactors. Prior to that, he served as commander of the U.S. submarine forces.

Donald takes the helm of SPA from Phillip E. Lantz, who will continue as SPA’s chairman of the Board of Directors.

Under Lantz’s 41-year leadership, the three-person company grew to a $100 million per year organization, providing decision support for national security programs through the Departments of Defense, Homeland Security and Energy.

John Heller Named Chief Executive Officer of PAE

PAE appointed John Heller as its Chief Executive Officer, the company announced on December 19. Heller will focus on executing the strategic vision for building the company into an industry-leading provider of services to the U.S. government.

Mike Dignam, who has served as the President of PAE since 2010, will continue in this role and report to Heller.

Heller joins PAE from Engility Corporation, where he has served as senior vice president and chief operating officer since January 2013, after the company was spun-off from L-3 Communications.

Have a story for Service Contractor’s Member News section?

E-mail Bryan Bowman at bowman@pscouncil.org.

36 / Service Contractor / March 2014

Professional Services Council

2014

Clockwise from top:

LEADERSHIP SUMMIT

Angela Billups, associate deputy assistant secretary for acquisition at HHS; Richard Spires, former DHS Chief Information Officer; and Randy Culpepper, Air Force program executive officer for combat and mission support, discuss how they view their industry partners at the 2014 Leadership Summit on January 27.

Brian Friel, federal business intelligence analyst for Bloomberg Government addresses trends in incumbency in federal contracting at the 2014 Leadership Summit on January 27.

Rep. Mac Thornberry, R-Texas, chair of the House Armed Services Committee’s Acquisition Reform Working Group, talks about the next steps in acquisition reform at the 2014 Leadership Summit on January 27.

Professional Services Council

Sen. Mark Warner, D-Va., discusses the budget during his opening keynote at the 2014 Leadership Summing on January 27.

OMB Deputy Director for Management Beth Cobert talks about the second term presidential management agenda during the 2014 Leadership Summit on January 27.

Dr. Martin Regalia, chief economist for the U.S. Chamber of Commerce, spoke at the opening reception of the 2014 Leadership Summit on January 26.

Service Contractor / March 2014 / 37

PSC: SCENE & HEARD √ PSC’s Roger Jordan (left) moderates a Jan. 7 PSC Market Insights event on new set-aside authorities. The discussion featured (from left to right) Kenneth Dodds of the Small Business Administration, Tony Franco of PilieroMazza, Alan Chvotkin of PSC, and Emily Murphy of the House Small Business Committee.

√ Then-GSA CIO Casey Coleman addressed the Annual Membership Meeting on Dec. 17, 2013.

π Sen. Ma rk Warner, federal bu D dget at a jo -Va., discusses the int PSC-N meeting o VTC town n Jan. 10. hall √ Special Inspector General for Afghanistan Reconstruction John Sopko speaks at a PSC Dialogue Series luncheon on February 18.

cusses , R-Va., dis lf o W k n πRep. Fra udget at a joint PSC .

10 lb the federa all meeting on Jan. h n w NVTC to

πMembers of PSC’s Board of Directors get ready to vote for new leadership at the Annual Membership Meeting on Dec. 17.

38 / Service Contractor / March 2014

Professional Services Council

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Growth turnarounds

© 2013 Wells Fargo Capital Finance. All rights reserved. Products and services require credit approval. Wells Fargo Capital Finance is the trade name for certain asset-based lending services, senior secured lending services, accounts receivable and purchase order finance services, and channel finance services of Wells Fargo & Company and its subsidiaries, including Wells Fargo Bank, N.A.; Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A.; Wells Fargo Credit, Inc.; Wells Fargo Distribution Finance, LLC; Wells Fargo Capital Finance, Inc.; Wells Fargo Capital Finance, LLC; Wells Fargo Trade Capital Services, Inc.; Castle Pines Capital LLC; Castle Pines Capital International LLC; Burdale Financial Limited; and Wells Fargo Capital Finance Corporation Canada. Wells Fargo Capital Finance Corporation Canada (also doing business in Quebec as Société de financement Wells Fargo Capital Canada) is an affiliate of Wells Fargo & Company, a company that is not regulated in Canada as a financial institution, a bank holding company or an insurance holding company. MC-6508 (09/2013)