Government Contractors Archives

GAO and the Top Government Contracting Trends

How does the Trump administration’s proposed budget line up with recent government contracting trends? According to the latest GAO report, there’s a significant disconnect between the two that bears watching.

What Does Current Government Spending Look Like?

Last March, the U.S. Government Accountability Office (GAO) released “Contracting Data Analysis — Assessment of Government-wide Trends,” commonly referred to as the Report. Contents included details on federal contract trends during the period from 2011 to 2015.

Overall federal contract spending declined nearly 24 percent, with the bulk of the change coming from a decrease in DoD spending. After spending reached its lowest level during sequestration in 2013, civilian spending bounced back while military spending continued to decrease.

Proposed Budget Changes: Increases and Cuts

A week later, the Office of Management and Budget released its “Budget Blueprint.” Among the major provisions of the blueprint was a significant increase in DoD spending with a corresponding significant decrease in civilian spending.

Specifically, the blueprint called for a $54 billion increase in defense spending, including more equipment for the Navy and Air Force. Cuts in civilian spending were proposed to allow for the boost in defense spending without increasing the national debt.

Congress is not entirely on board with the proposed cuts, so the final budget is expected to look different. Contractors who conduct business with the affected agencies are advised to pay close attention to the blueprint as it passes through the approval process.

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Made in America – Meets National Security Needs for Department of Defense

Following a push for “Buy American,” the Trump Administration has rolled out another executive order regarding the sourcing of defense equipment from domestic manufacturers. Soon, contractors may be required to source made-in-the-USA materials from a DoD equipment supplier whenever feasible.

A more thorough analysis of what we know so far about the new DoD equipment supplier requirements has been made by Inside Government Contracts. Among the takeaways:

> The manufacturing order is intended to assess the military’s procurement methods as well as to boost the country’s defense manufacturing industry.

> The Secretary of Defense must complete a report by April 17, 2018, detailing the “resiliency and capacity” of the defense industrial base, so exact laws and regulations will be clearer around that time.

> Requirements to buy American products will most likely impact purchases for products that are already made or could be made domestically, and are not prohibitively more expensive than foreign-made alternatives.

DJ Products, a USA-Made DoD Equipment Supplier

Our company’s mission is to provide ergonomic, safe, and affordable solutions for material handling equipment such as warehouse cart movers and trailer tows. As a DoD equipment supplier, we have GSA-approved products such as our CarCaddy Military Truck Pusher, which can haul Humvees and other heavy trucks.

DJ Products is based out of Minnesota, and our material handling solutions are made in the USA. Rest assured that our DoD contractor equipment will satisfy any kind of domestic procurement law that may affect your operations in the near future.

Contact DJ Products to learn more about our cost-effective options for military contractors who need vehicle, trailer, or equipment moving solutions.

Feds Work to Shut Out Contractors as Punishment

In July 2014, the Fair Play and Safe Workplaces executive order was enacted in an attempt to punish federal contractors who have a history of labor abuses. As Congress addresses funding for the Department of Defense, the order is causing members to take sides regarding its enforcement.

Is the “Fair Play” Order Necessary?

The order covers a wide spectrum of labor abuses, but the primary issue is wage theft, which occurs when employers don’t pay employees the full amount they are owed. In the absence of general anti-wage theft laws, the White House has used the policy to withhold federal agency contracts from offending companies.

This past May, the funding bill came before Congress, and it included a provision to make DoD contract equipment and other contracted services exempt from the President’s order. Rep. John Kline of Minnesota, author of the provision, argued that the order is redundant based on the effectiveness of current safeguards.

A House Divided

Rep. Keith Ellison, also of Minnesota, objected to the provision, citing evidence from a Senate labor report showing that $81 billion in contracts had been awarded to 49 companies with significant wage and safety violations on record. However, Ellison’s amendment to remove the provision was dismissed.

The House ultimately approved the funding bill, which is now before the Senate, but it still faces an uncertain future. The White House has suggested that President Obama will veto the entire bill unless major changes are made.

DoD Contract Equipment from DJ Products

Our reliable and cost-effective material handling solutions fill a multitude of military and DoD applications. Contact us for more information.

DoD Service Contract Program Change is on a Slow Track

Government Procurement Drives Demand for Industrial Handling Solutions

In January 2016, the Department of Defense instituted a policy aimed at streamlining their services contracting with better oversight and control. While the new policy is expected to make the process more cohesive, it may take another dozen years before coming to full fruition.

“A 15-Year Effort”

More than half of the Department’s procurement budget is allocated to services, with the remainder for purchases such as contract equipment. According to Ken Brennan, deputy director of services acquisition, the goal is for contracts to become part of “the general culture and policy” rather than standalones.

In Brennan’s view, the new policy is “a 15-year effort” that is already about three years along. Brennan adds that is making significant progress, and he anticipates potential for guidance soon in the areas of small businesses and administrative services.

Functional Domain Experts

One major change involves the creation of functional domain experts, or FDEs, to lead each of the individual service sectors. Claire Grady, director of defense procurement and acquisition strategy, explains that this lets people with particular expertise create strategies to improve planning and execution while reducing costs.

FDEs will also implement metrics to monitor contract performance, determine best practices and recommend policies. Grady says will be paying close attention to the metrics established by these new domain leaders.

Military and Material Handling Solutions

DJ Products offers quality options for contract equipment. Our battery-powered tugs and movers handle applications like maneuvering aircraft in and out of hangars and pulling heavy engines and parts. Visit our website to have your questions answered online by one of our knowledgeable sales engineers.

Department of Justice Wants to Preserve Competition Between Contractors

Preserving Competition

The Department of Justice (DOJ) and the Federal Trade Commission (FTC) are urging defense contractors to keep producing arms. Weapons and ammunition production are essential to keeping the peace for both law enforcement and the military.

Mergers

There have been several mergers between companies that supply weapons in the past year, which may be good for keeping prices competitive and products readily available. But mergers can also mean a slowing of development for newer and better weapons, and both the DOJ and the FTC want to make sure this type of development does not stop. This is why they have partnered to keep both development and production going, making sure there is no lull.

DOD Contractor Equipment

Weapons and ammunition demand signals will continue to drive the procurement of DOD contractor equipment. Heavy loads will need to be moved via carts, trailers, rail cars, etc., and shuttled from one place to another.

Wagons, waste and even such specialized munitions like bombs must be moved around, either within the factories themselves or out to the loading dock. Many of these require specialized moving machines, and all of them are available at DJ Products, who have industrial solutions for every market sector.

For more information on warehouse equipment suitable for any job, contact DJ Products, makers of trailer movers, dumpster movers and even aircraft movers. We have the mobile solution for your DOD warehouse floor management from munitions to waste removal.

DoD Contractors In Hot Water for Poor Accounting and Invoicing

Poor Invoicing Has Led to Issues in the DOD

After the Department of Defense found that some transportation contractors had falsified weight tickets, Maersk Line has settled the allegations with $3.66 million in civil penalties.

Maersk’s Farrell Lines and its logistics branch, Damco, appeared to be at fault due to a poor invoicing system. It is unclear whether there was any attempt to falsify the shipment weights, as the matter was settled before going to court.

The large fines indicate the stringent standards placed on DoD contractor equipment and practices — with strict scrutiny expected even for large and established contractors.

Why the DoD Fined Two Maersk Subsidiaries

The transportation companies had been subcontracted to move DoD cargo out of Scott AFB in Illinois. As per the terms of the contract, billing was weight-based. However, the companies did not create authentic weight tickets when shipping the loads — employees had apparently written up 563 tickets after shipment.

With the DoD contractor equipment available today, automated record keeping and material handling should prevent these sorts of invoicing issues.

Maersk had previously paid a $32 million settlement for overcharges to the DoD in 2012, but has been awarded billions in contracts since.

About GSA-Approved DoD Contractor Equipment

Firms with government contracts should take advantage of modern material handling equipment to automate many processes. At DJ Products, we offer GSA-approved truck pushers, trailer caddies, the BombCaddy remote explosive trailer, and other military contractor equipment.

These devices not only make it easier to push and pull heavy equipment and vehicles, but doing so can also make it easier to streamline operations and staffing needs.

Find out more about DoD contractor equipment at DJProducts.com.

DoD Cracks Down on Employees Leaving to be Contractors

DOD Lost an Employee to Boeing

Possible conflicts of interest when Department of Defense (DOD) employees leave to work for defense contractors should be of interest to every tax payer in the country. CNS News reports, when Darleen Druyun, one of the Pentagon’s top-level acquisition officials, was offered a job by Boeing earning $250,000 a year, it clearly compromised the negotiations of a contract for a tanker project. In her role as Principal Deputy Undersecretary of the Air Force for Acquisition, Druyun gave Boeing preferential consideration and agreed to a higher price for the project. She then left the DOD to accept the job at Boeing.

Problems still exist

The unethical behavior earned Druyun a $250,000 fine and nine month sentence in federal prison. It also prompted officials to add the “revolving door” provision to the National Defense Authorization Act in 2008. Audits in 2010, 2014, and March of 2016 show potential conflicts of interest remain a major concern. Among other problems with reporting, the required online database known as the After Government Employment Advice Repository (AGEAR) is lacking much necessary information to be an effective tool.

DOD contractor equipment

Civilian contractors are constantly under scrutiny and must operate as efficiently as possible. The GSA has a wide range of requirements for Military and DOD contractors.

At DJProducts, we know the requirements for DOD contractor equipment and the importance of maintaining both the safety of your employees and operational efficiency. Our BombCaddy is a remote controlled, self-propelled power trailer. It is capable of safely maneuvering heavy machines and equipment in tight spaces. Contact us today for more information on our full line of DOD contractor equipment.

Pentagon Changes the Face of Its Workforce Though Contractor Usage

Government Contracting

Since 2012, the Pentagon has faced congressional pressure to reduce DoD spending on civilians and contractors. While the DoD hit benchmarks the first few years of the mission, it has begun increasing its spending on contractors. The DoD projects an increase of $1.2 billion spent on contractors from fiscal year 2014 through 2016.

A showdown or new changes may be looming, as the civilian federal employee union AFGE fights proposed moves to re-classify civilians such as commissary employees and reduce their pay. A consulting group has recommended such changes to the DoD.

For DoD contractors, the increased spending means solid and steady work for now. The AFGE and some DoD spending watchdogs would argue that civilian employees should be performing more of the jobs carried out by DoD contractors and military personnel, however.

If the DoD agrees to change course and cut contractor spending, the next step would likely be contract reviews to determine the necessity and efficiency of the service provided by each contractor. Larger contracts would yield greater scrutiny.

The Pentagon has generally indicated a focus on overall DoD spending, rather than specific concerns for whether various roles are carried out by military, civilians, or contractors. For DoD contractors, this means that cost-effective bids are the surest path to retaining and securing work.

DoD contractor equipment may be one area to strategically spend on overhead to make tasks more efficient and require fewer personnel. Vehicle movers, aircraft caddies, and equipment carts with battery-powered motors from DJ Products are GSA-approved for defense contractors. Take a look at DJ Products DOD contractor equipment for more information.

Tag: Government Contractors