GovCon Insights July 8, 2011: Service Contract Cuts, DOD Deputy Secretary Lynn Resigning; National Labs, Contractor Cyber Attacked
White House plans cuts to support service contracts [Washington Post] – At the White House Forum on Accountability in Federal Contracting yesterday, the Office of Management and Budget announced requirements for federal agencies to cut spending on management support service contracts 15 percent to $34 billion by the end of fiscal year 2012. Spending on such services quadrupled from 2000 to 2010.
William Lynn, no. 2 official at Pentagon, to resign [Washington Post] – Citing personal and family reasons, Deputy Secretary of Defense William Lynn said he will leave his post this fall. DOD has already seen Robert Gates leave last week and will lose key leaders Adm. Mike Mullen, Gen. David Petraeus and Adm. Gary Roughead in the coming months.
U.S. government facilities targets of cyber attacks [StarPhoenix/Reuters] – Virginia’s Thomas Jefferson National Laboratory and Washington’s Pacific Northwest National Laboratory (PNLL) and its managing contractor Batelle were victimized by cyber attacks last week. PNNL spokesman Greg Koller asserted that no classified information was compromised.
“IT Matters”: Why What You Do Makes a Difference [GovWin] – AOC Key Solutions principal owner and technical director James McCarthy looks at the positive things information technology contractors help accomplish. His list includes combating terrorism, cleaning up the environment and managing vast amounts of critical data.
Cuba to hear jailed American’s appeal July 22 [CBS News/AP] – On July 22, the Cuban Supreme Court will hear an appeal by jailed U.S. Agency for International Development contractor Alan Gross. The official Cuban government announcement noted that considerable evidence exists to suggest he was involved in a “subversive project of the U.S. government to try to destroy the revolution.”
Army to check out devices for munitions removal use [Honolulu Star Advertiser] – The Army, National Oceanic and Atmospheric Administration and contractor ARA Inc. are briefing the media in Pearl Harbor today about the $2.5 million Ordnance Reef project. The project will use underwater technology to determine whether discarded munitions can be removed from shallow waters and off coral masses.
Hanford contractor plans to cut 210 jobs [Tri-City Herald (Wash.)] – Washington Closure Hanford and subcontractor Eberline Services will shed up to 210 positions by October 1. Unlike many Hanford nuclear reservation contractors being laid off due to funding cuts, these job losses are due to the work cleaning up the Columbia River near the Washington site being completed.
Reverse auction ahead: Proceed with caution [Federal Computer Week] – Office of Federal Procurement Policy Administrator Dan Gordon’s four points of advice about reverse auctions are:
- They are to buy a product.
- Price is the only evaluation criterion for the procurement
- Services are not auctioned off, except in particular circumstances
- An agency buys a commoditized service, such as overnight delivery, where technical evaluations are unnecessary
VA establishing significant presence in Spotsylvania? [Fredericksburg.com] – Kizano recently announced it won a two-year, $2.5 million contract from the Veterans Administration (VA) for office services for 164 VA employees at the new Strategic Acquisition Center in Spotsylvania County, Va. While the agency has not admitted to having plans in the area, a Strategic Acquisition Center is listed on its Office of Acquisition and Logistics site.
Lockheed Martin says infrared images sent to Earth [CNBC/AP] – Lockheed Martin said its Space Based Infrared System craft sent its first infrared image to a ground station on June 21. The military satellite is designed to detect missile launches.
Shuttle’s end a blow to Florida’s “Space Coast” [Reuters] – The space program is so entrenched in the fabric of the Space Coast of Florida, the area successfully beat out Chicago for the “321” area code a decade ago. While University of Central Florida economist Sean Snaith feels the area will diversify economically enough to overcome the 3,200 space shuttle layoffs and not become “some sort of celestial rust belt,” a NASA contractor asking not to be identified predicted, “This place is going to be Flint, Michigan.”
After Military Market Dries Up, STD Med Scores With Medical Devices [Wall Street Journal] – Former military and aerospace contractor Stoughton Tool & Die has seen new life since the end of the Cold War as medical device maker STD Med. CEO Steven Tallarida points outs “One of the fun things about medical devices is you can make the whole product … You can’t build a tank.”
GovCon History
This Day in GovCon History, July 8, 1776: First Public Reading of Declaration of Independence [GovWin] – A look at the 235th anniversary of the Declaration of Independence being publicly read for the first time, after the Liberty Bell was sounded. Also, a summary of the contracting history of preserving and housing the document — along with the making, repairing and housing of the bell.
DOD Contract Announcements
Contract Announcements for July 7, 2011 [Defense.gov] – Boeing won a $119.4 million Navy contract for an assortment of Harpoon and All Up Round missiles and their associated hardware for the governments of Taiwan, Egypt, Singapore, Japan, Australia, South Korea and Canada. Michelin won separate ground tire contracts of $29.6 million and $9.9 million from the Defense Logistics Agency. The agency also gave small business Plaza Fueling Agents a maximum $8.6 million for marine gas oil. See the full announcement for more details and other awards.
Federal Register Updates
Major System Acquisition; Earned Value Management – NASA is seeking to relieve contractors of an unnecessary reporting burden by eliminating the requirement of contractors to establish and maintain an Earned Value Management System for firm-fixed-price contracts.
DOD. NASA and the General Services Administration are asking the Office of Management and Budget to extend a previously approved information collection requirement concerning:
Oh Brothel, Where Art Thou?
Partying Security Contracting Group Pays $7.5 M Fine [ABC News] – Former U.S. Embassy in Kabul contractor ArmorGroup North America has agreed to pay the government $7.5 million to resolve False Claims Act allegations, with $1.35 million going to whistleblower and former director of operations James Gordon. The company is accused of lying in State Department contracts, allowing employees to frequent brothels in Kabul and holding drunken parties where guards were pressured to perform sex acts in exchange for promotions and preferable shifts.
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