Tag: DOD Contracting

Congress Pads Bills with Preferential Treatment for Military Sole Source Contractors

Congress Pads Bills with Preferential Treatment for Military Sole Source Contractors
Congress Pads Bills with Preferential Treatment for Military Sole Source Contractors

Much of the business world is moving toward greater transparency these days. Some clothing retailers even explicitly state their costs per garment while touting their openness. In the defense industry, things don’t work like that. In fact, sole-source contractors for the Department of Defense were just given free rein to sell more to Uncle Sam without providing any cost info for labor or materials.

Funding the military meets with wide agreement, even among members of Congress. As David Dayen of The Intercept recently wrote, the National Defense Authorization Act passes on-time more than any other recurring vote.

Cost data must be provided for competitive contracts as part of the bidding process. For supplies or services with a sole-source contractor, there was previously no need to share cost data for contracts up to $500 million. That just got quintupled up to a $2.5 million limit.

As you can imagine, this means that suppliers who already have a monopoly on their work can now do even more business without transparency.

Smaller contractors have to worry about the cost of DoD contractors’ equipment needs and labor while bidding competitively. One could argue that’s the best thing for taxpayers’ interests and for maintaining a free market.

As Dayen notes in his coverage, this preferential treatment for larger, sole-source contractors takes away focus on minimizing costs for DoD spending. It also lets certain players avoid disclosure to rig the system in their favor.

DJ Products serves DoD contractors’ equipment needs with trailer movers, powered cart movers, and more GSA-approved equipment. Browse our site for solutions that can help your firm stay competitive for DoD contracts.

Networking Summit Acted as Matchmaker between Businesses and the Military

Networking Summits Acted as Matchmakers between Businesses and the Military
Networking Summits Acted as Matchmakers between Businesses and the Military

Most business people rely on networking to market themselves and discover valuable new opportunities. The same holds true for a military contractor equipment supplier attending the recent Army Contracting Summit in Killeen, TX.

“Marrying” Contractors and Local Companies

The Washington, D.C.-based Defense Leadership Forum hosted the two-day event for approximately 150 area vendors and business leaders. Various workshops and speeches focused on providing local companies with information and advice about Army contracts in the Fort Hood area.

Howard Snow, a retired Marine lieutenant colonel who formerly served as Deputy Assistant Secretary of the Navy, moderated the event. He explained that the purpose of the summit was to serve as “matchmaker” for defense contractors and local businesses.

What’s In the Future for Army Contracts?

Summit highlights included details about specific military contracts for goods and services including vehicles, ammunition, communications and housing. Contractors also received insights into successfully dealing with the government’s procurement systems.

Richard G. Kidd IV, Deputy Assistant Secretary of the Army for strategic innovation, gave the keynote speech. Kidd addressed the changing environment for military installations and the Army’s commitment to renewable alternative energy projects.

While in town, Kidd also attended a ribbon-cutting at West Fort Hood marking the completion of more than 60,000 solar panels. The hybrid renewable energy project is expected to save about $168 million dollars in energy costs over the next 30 years.

Military and DOD Tugs and Movers from DJ Products

We offer a full line of electric tugs and movers that are perfect solutions for military contractor equipment suppliers looking to improve workplace safety. Visit our website to learn more.

 

Military Spying Aircraft Market Targeted by Boeing

Businessman pressing modern business type of buttons
Department of Defense Contractors Use Our Equipment Solutions

By their own estimation, Boeing faces a serious test of whether their militarized 737 airliners are the future for the U.S. Air Force. Next up on the Pentagon’s decision block will be new planes for the JSTARS surveillance fleet, which has been running on Boeing 707s for decades.

This fall, when military leaders choose between the 737 or smaller business jets instead, it’s largely a question of short-term versus long-term outlooks.

About the Boeing 737 for Military Use

Use of the Boeing 737 by militaries is not new. Nearly 200 have already been purchased by the U.S. and other countries for various applications. This time, the notable difference is that the 737 is larger than what the JSTARS spying program may even need.

Boeing believes that the larger 737 offers great value for two key reasons. The extra room for growth can accommodate changing needs, and the higher immediate cost may well be offset by cheaper maintenance.

Business Jets or Commercial Airliners?

With many other aircraft fleets up for replacement soon, Boeing hopes the 737 will become the recurring preference.

The more glamorous business jets cost only half as much as the 737, whose higher maintenance costs may scuttle the deal. That would not be surprising, as lower immediate costs often seal the deal for military decisions.

Is bigger better when it comes to spying aircraft? One thing we know for certain: military and aviation professionals need the right tool for every job. Our aircraft tug helps tow small aircraft of all sizes for maneuvering in the hangar and staging on runways.

Check out the Lindbergh Aircraft Tug for more info.

Department of Defense Contractors Urged to Report Data Breaches

Hands of hacker
Report Any Data Breaches

Cybercrime is estimated to cost U.S. companies up to $2 trillion by 2019. Beyond the financial toll, cyberattacks on Department of Defense (DoD) contractors pose a crucial threat to national security. In an effort to limit the risk, DoD recently enacted stringent rules governing cybersecurity and breach reporting.

Protecting Sensitive Government and Defense Data

The latest Defense Federal Acquisition Regulation Supplement (DFARS), enacted in August 2015, includes the following provisions for DoD contractors:

• Implementation of security measures is required for all computer systems.

• Any occurrence of hacking or other cyberattacks must be reported to the Department of Justice within 72 hours.

This action was prompted by a series of high-profile hacking incidents involving government agencies including the IRS and Office of Personnel Management.

When Cyberattacks Go Unreported

Unfortunately, this regulation has not caused much improvement in breach reporting. One 90-day review revealed 199 instances of suspected leaks, but only 12 agencies reported any breaches.

Failure of DoD contractors to report cyberattacks leaves the door open for whistleblowers via the False Claims Act, which provides for awards of 15-30% of the government’s total recovery against companies found guilty of reporting violations.

DJ Products: The Solution to DoD Contractor Equipment Needs

Military and DoD projects require timely and efficient operations through every step of the process. DJ Products offers a comprehensive line of battery-powered tugs and movers to meet any DoD contractor equipment need up to 50,000 pounds. Call 800.686.2651 and let our friendly sales engineers help you choose the right product for your application.