Emerging Trends in Procurement andWhat’s New in NCMA

Neal J. Couture, CPCMExecutive DirectorNational Contract Management Association

The Acquisition Workforce Has Changed

•Years of downsizing (1990’s)•Human capital strategies have not kept up

with evolving demand•Different set of expectations, e.g. business

advisor•Evolving gap in replacing the retiring

professionals• Inadequate investment in training

The Nature of What We Buy Has Changed

•Offloading simple transactions•Larger, more encompassing services•Complex IT, communications, and weapons

systems•Accelerated fielding to serve the war

fighter•Emphasis on logistical support

PEGASYS

WARSIM SE-CORE

NGATS

IBS

AVCATTAWACS

TSV TBMCS TCO

PATRIOT

NFCS

MCTIS

LFC2IS

MAGIS

MOUT-OIS

MILES XXI

F/A- 22

SIMACET

BATESAALPS

SECOMPI

C-130C-17

SOLDIER-CATT

C-5

CBS

ACTF

FIOP

GIG

TACSIM

IEWTPT

LOGISTICS AALPS

C-5 C-17 C-130 MILES XXI PEGASYS SE-CORE

INTEL AWACS IBS MAGIS MCTIS MTS NGATS PKI

TRAINING ACTF AVCATT CBS IEWTPT SECOMPI SOLDIER-CATT TACSIM WARSIM

FIRE SUPPORT BATES F/A-22 NFCS TSV

MOB/SUR STEPS MOUT-OIS

Command and Control FIOP GIG LFC2IS SIMACET TBMCS TCO TELEPORTS

ADLER

MTS

ACS

JC2

SLAMRAMM

MIP

MSD

IDM

DMS-A

BSTF

JCM

GMLRS

ATACMS

Profiler

TAIS

PAFCS

MLRS

MEADS

MCSLLAPI

JTAGSJLENS

IMETS

GCCS-A

GBS

Mongoose

FAAD-C31

FBCB2

DTSS

C2PC

BCS3 BFT

ADOCS ASAS AMDWS

AFATDS

HMEE

REBS

APACHE

HIMARS

CHINOOK

Blackhawk

A2C2S APKWS

PHOENIX

FIREFINDER (Q37)

PLS

BSM

SHORAD

Engineer Vehicle

CBRNRS

INTEL ACS JTAGS TES UAV-CL IV-b

C2 ADOCS

ADSSI AFATDS AMDWS A2C2S ASAS BCS3 BFT C2PC DMS-A DTSS FAAD-C3 FBCB2 GCCS-A IDM IMETS JC2 TAIS PAFCS MCS MIP

MANEUVER APACHE APKWS JCM

AIR DEFENSE ATACMS MEADS SLAMRAMM SHORAD JLENS LLAPI

FIRE SUPPORT ADLER FIREFINDER-Q37 GMLRS HIMARS PROFILER PHOENIX MLRS

LOGISTICS BSTF CLOE PLS MSD

MOB/SURV BSM BLACKHAWK CBRNRS CHINOOK Engineer vehicle HMEE REBS MONGOOSE

GCSS-A

TES

UAV-CL IV -b

Soldier System

Internal Interfaces

CAMEL

HIPPO

TEP

DCGS-A CHIMS

Land Warrior

LWP

FRS

LHS FUEL FARM

AMPS/JMPS

HEMTT

HMMWV

AAFARS

PLST

FIREFINDER (Q36)

SentinelTC-AIMS II

Logistics AAFARS CAMEL FMTV HEMTT HMMWV HMMWV M1114 HIPPO LHS FUEL FARM LWP MAINTENANCE TRUCK/FRS PLST TEP TC-AIMS II

C2 AMPS/JMPS

Sentinel

INTEL DCGS-A CHIMS

FIRE SUPPORT FIREFINDER (Q36) IMS NLOS-LS

MANEUVER

LAND WARRIOR SOLDIER SYSTEM

FMTV

HMMWV M1114

UAV CL IV ASTAMIDS / EO/IR Tactical SIGINT PAYLOAD UAV –SAR/GMTI

NETWORK ADSI BVTC CLOE DCTS GPS JTRS1 JTRS5 JWARN LFED MC4 NCES PKI STEPS TELEPORTS WIN-T

LETHALITY ACSW AIRBURST MUNITION ACSW KE MUNITION ACSW TRAINING MUNITION CKEM Electronic Time Fuse EXCALIBUR MACS MOFA NON-LETHAL 155mm PGMM Training Unique Ammo MK-44 AMMO 30 mm AIRBURST MK-44 AMMO 30 mm KE MK-44 AMMO 40 mm AIRBURST MK-44 AMMO 40 mm KE MRM/ERM

MGV ACSW CED FCS–Non FCS CID HTI-FLIR LIGHTWEIGHT120MM cannon (Pending) MFCS MK-44 PROPHET JCAD JSLSCAD JBPDS JBSDS

SOLDIER HSTAMIDS LLDR MK VII RADIAC SET Soldier to FCS CID Soldier to Soldier CID

UGV ARV(L) JAVELIN MULE GSTAMIDS

TRAININGATIA

CCTTCTIADLSOneSAFOneTESS

ExternalSystems and Interfaces

Future Combat System (FCS)

The Working Conditions Have Changed•Compelling urgency – everything is

accelerated in fight against terrorism•Doing business in the battle space•Deployment of personnel leaves home

force shorthanded•Unprecedented level of support needed for

hurricane Katrina response•Constant threat of oversight and second-

guessing decisions•High media attention

The Acquisition Rules Have Changed

•Years of acquisition reform (1990’s)•Commercial items and complex services•Larger task orders with less transparency•Organization conflicts of interests• Interagency contracting•More outsourcing (competitive sourcing)•Expanded socio-economic programs•Buy American

The Supply Base Has Changed

• Industrial base consolidation•Partnerships and teaming•Global competition has increased•Strategic sourcing•More eBusiness•More competition at 2nd and 3rd tier• Increased OCI challenges

This All Adds Up To Risk!

•There is more work, it is more complex, and it must be acquired faster than ever

•Workforce downsizing, expert class retiring, while expectations and oversight increases

•Rules are more flexible, actions are less transparent

1. The Federal acquisition workforce remains a major challenge.• Shortage of skilled labor is not unique to our

profession, industries or employers.• Cannot replace ‘brain drain’ fast enough.• Workload will remain.• Training funds get cut routinely.• Alternative workforce solutions required.

– Eliminate barriers to hiring external candidates.– Eliminate barriers to re-hiring annuitants.– Increase use of alternative work arrangements and

compensation plans.– Increased telework.

2. The political pressures on the Federal procurement system will increase short term.• Mission will not be reduced soon.

– Replacing war equipment and materials.– Aging systems (refueling tankers, etc.)– Insatiable appetite for improved warfighting technologies.

• Dozens of contracting oversight bills in committees.• Increased attention on blended or multi-sector

workforce.• Attention on GSA Administrator, SBA effectiveness,

NASA IG, DHS acquisition organization and DoD systems acquisitions.

3. Financial pressures will force discretionary budget reductions beginning in next five years.• The Fiscal Wake-Up Tour being conducted by the

Comptroller General.• We spend less of our budget on defense in 2006

than in 1986 or 1966.• Discretionary spending is down from 67% in 1966 to

38% in 2006.• Budget deficits of $928 billion in last two years.• Rising entitlement (health care) costs is the main

cause.“Saving Our Future Requires Tough Choices Today”

GAO-07-739CG April 4, 2007

4. Regulatory changes likely:

• Reduce number of contracts awarded non-competitively.

• Eliminate practice of Lead Systems Integrator (LSI).• Increase use of fixed-price contracts.• Increase small business contracting goals.• Restrictions on contracting with entities in tax default.• Guidance on use of award fees.• Emphasis on using hybrid contracts containing

multiple incentive types.• Restrictions on outsourcing, new requirements to in-

source.

S.680 Accountability in Contracting Acton Task Order Contracts• require task or delivery order contract awards that are

anticipated to exceed the simplified acquisition threshold to be made on a competitive basis providing notice to all contractors offering goods or services under a multiple award contract, with specified exceptions;

• notice requirements on sole source orders in excess of such threshold that are placed against multiple award contracts or blanket purchase agreements;

• require a statement of work for a task and delivery order valued over $5 million to specify the basis for selection;

• require agencies to provide offerors not selected for such an order a post-award debriefing;

• authorize protests of such orders valued over $5 million; • include as a condition for use of noncompetitive contract

procedures the public disclosure of justification and approval documents; and

• limit the length of specified noncompetitive contracts for property or services available from only one source.

S.680 Accountability in Contracting Actother issues• a requirement for each agency to develop a plan

for minimizing the use of cost-reimbursement contracts

• the issuance of guidance on the use of tiered evaluations of offers for contracts and for task or delivery orders under contracts.

• the debarment of contractors that are serious threats to national security.

• limitations on the use of subcontractors or tiers of subcontractor.

• Workforce provisions include new SES position at OFPP for workforce, industry exchange, fellowships, interns, training programs.

Strategic Initiative

Increase Professional Advocacy• Monitor, analyze, communicate and train on

domestic and international developments that may have an impact on the practice of contract management or the people and organizations that practice contract management. – Pending and adopted legislation and regulation.– Workforce developments– Other conditions affecting the profession

• Publish white papers that explain, describe and clarify issues of importance.

• Provide information to key stakeholders to improve understanding of public procurement.

• Develop a public relations communications strategy.

Strategic Initiative

Create the Next Generation of Contract Management Professionals• Recruit students members.

– More than 500 undergraduate student members.

• Charter student chapters.– Cal Poly Pomona, Bowie State, and Christopher Newport

• Standard CM Curriculum• MacFarlan research program – papers due 12/31/07!• Contract Management Leadership Development

Program (CMLDP)– First class of 34 students graduated in April 2007– Second class of 24 students started June 2007.

Upcoming PublicationsProduct Date

Journal of Contract Management. September 2007

The Resource Guide 2008 November 2007

The 2007 Salary Survey. February 2008

Upcoming Education ProgramsNES Seminars

Solicitations, Bids, Proposals and Source Selection September 2007

New Far 45 Government Property Rules January 2008

Earned Value Management April 2008

Contract Costs and Pricing September 2008

Audio-seminars

FAR Overview (Parts 5, 6, 7, and 8) September 13

Contract Administration Basics (Performance Monitoring)

September 27

Contract Law Basics (Ethics and Compliance) October 4

Pricing Basics (Price Analysis) October 18

GSA Multiple Award Schedule (MAS) Contracts October 23

Upcoming Conferences

Event Date

Government Contract Management Conference in Bethesda, MD

November 8-9, 2007

Mid-Year Leadership Conferences in Las Vegas, Orlando, and San Antonio.

January-February 2008

World Congress 2008 in Cincinnati, OH. April 13-16, 2008

Leadership Summit 2008 in San Diego, CA June 2008

Aerospace and Defense Contract Management Conference in Garden Grove, CA.

July 2008

The Value of NCMA Certification

• Results of NCMA’s 2005 Salary Survey (over 2,200 respondents)

– $75,000 average salary with no certification– $85,000 average salary with CFCM– $100,000 average salary with CPCM

– $77,600 BS/BA degree and no certification – $85,500 BS/BA degree and CFCM– $95,800 BS/BA degree and CPCM

– $92,700 MA/MS/MBA degree and no certification– $108,000 MA/MS/MBA degree and CPCM

Communities of Practice

•More ways to connect to the information, people, and tools that you need.

•Launch March 2008:– GSA Schedule Contracting– Small Business Contracting– Performance Based Acquisition

•Online features: e-courses, discussion forums, listservs, blogs, expert networks, e-newsletters, website, research archives

•Meetings at World Congress, new educational conferences, quarterly magazines

New Program!

What you can do.

•Lead by your actions.•Be a “chief courage officer”•Stay informed on the issues.•Have opinions, and engage in the

discussion.•Participate in continuous learning. •Demonstrate your competency by getting

certified.•Resist cynicism and skepticism.•Participate in your NCMA chapter.Engage in your profession!

NCMA21740 Beaumeade Circle, Suite 125

Ashburn, VA 20147

Neal J. Couture, CPCMExecutive Director

couture@ncmahq.org1-800-344-8096 x423

571-382-1123703-448-0939 (fax)

www.ncmahq.org