By
David Berkey on
Wednesday, June 14, 2000 - 09:33 am:
Vern et al;
Good stats and good question re "what is the significance of
these trends .... for the 1102 series".
We need better training in the service contracts area. One or
two of the courses I've had there are truly lacking. The
philosophy, application, and mechanics of the Service Contract
Act and how collective bargaining agreements work needs to be
taught well. Real life examples of contract administration
problems should be taught via case studies.
The fundamental courses for 1102 need not be changed simply
because we buy a higher %age of services.
I am very interested in seeing the FPDS stats for GSA schedule
usage in services over the last three or four FYs. Say what you
will about Clinger Cohen, FARA, and FASA, to me the
availability, scope, flexibility, and PALT of the GSA Schedules
place the schedules at the pinnacle of procurement reform in the
1990s. Well, maybe the Guiding Principles added to the FAR and
the resulting change in mindset ranks at the top too. So good
courses on GSA schedules need to be developed. I'm sure some
will ask what's to learn since FAR 8.4 is about all there is.
Well, the forms and process mindset needs to be liberated.
Let'em know that the lack of regulations provides the freedom,
creativity, and TIME to devise great RFQs and Orders (planning,
good SOWs, UCC sections L & M), and that it does not mean we
become clerks working under the direction of program offices. It
allows us to become the "business managers" that innovators like
you, Linscott, and Nash have advocated since '90 or so(It galled
me at the NCMA "World Congress in Crystal City last Month that
the speakers were talking of 1102 as business mgrs AS IF it were
some new born concept). Pardon, I pontificate.
Dave Berkey, CO, US Dept. of Energy, Morgantown,WV
304.285.4990
By
Kennedy How on Monday,
June 5, 2000 - 12:27 pm:
With respect to the activity I'm
at, it has been the policy of the Acquisition management to
contract using long-term requirements-type or IDIQ contracts for
supply items, to the maximum extent practicable. This is in the
secondary (spare parts) arena. While I wasn't involved in how
this decision was arrived at, my understanding was that it
decreased the number of routine buys that were being constantly
generated. This was in conjunction with a major emphasis on the
reduction of Admin Lead Time. Full-blown procurements tend to
inflate this, and due to direction to the Army to reduce depot
stock, there had to be a way reduce qty stored, but also be
responsive. Increasing ALT wasn't the answer, so we went to
long-term contracts. Delivery Orders cut through the procurement
process, so managers can be more responsive to stockage levels.
Kennedy
By
Vern Edwards
on Friday, June 2, 2000 - 03:00 pm:
Here are some statistics about
awards in excess of $25,000 in FY94 (1 Oct 93 through 30 Sep 94)
and FY99 (1 Oct 98 through 30 Sep 99):
The table below shows the distribution of actions over $25,000
by type of action:
|
FY94 |
FY99 |
Total
Actions |
430,092 |
487,264 |
New
Awards |
17% ( 73,603) |
9% ( 42,461) |
Orders |
45% (192,472) |
49% (242,818) |
Modifications |
34% (147,058) |
30% (144,419) |
Small
Purchases |
3% ( 13,364) |
12% ( 56,537) |
Terminations |
1% ( 3,595) |
0% ( 1,029) |
The table below shows the
distribution of obligations on actions in excess of $25,000 by
type of action:
|
FY94 |
FY99 |
Total
Obligations |
$174.7B |
$183.3B |
New
Awards |
25% ( $43.8B) |
17% ( $30.9B) |
Orders |
17% ( $30.0B) |
26% ( $48.4B) |
Modifications |
58% ($100.9B) |
55% ($100.5B) |
Small
Purchases |
Not Available |
2% ( $3.5B) |
Terminations |
Not Available |
0% (-$0.2B) |
Note the changes in the distributions between new awards and
orders. Presumably, the changes reflect the increased use of
task order contracts, but I suppose that there could be other
explanations.
Another interesting statistic has to do with what the Government
buys. In FY94 Service Category R, Professional, Administrative,
and Management Support Services, was the third largest of all
categories of purchases, accounting for $13.6B worth of
obligations, which was slightly more that the largest supply
category, FSC Group 15, Aircraft and Airframe Structural
Components, which accounted for $13.2B. But in FY99, Service
Category R was the largest category, at $18.5B, while the
largest supply category, still FSC Group 15, was at $$11.5B.
Yet another interesting statistic is that credit card purchases
now account for slightly more than 66 percent of all actions of
$25,000 or less. This is a definite trend. In FY97 they were
slightly less than one-half of such actions.
Credit card purchases account for more than 40 percent of
obligations on actions of $25,000 or less and they are rapidly
approaching the 50 percent mark. In FY97 credit card purchases
accounted for less than 25 percent of such obligations.
Assuming that these numbers reflect trends that will continue in
FY2000 and beyond, even if at a slackening pace, what if any is
the significance of these trends for Federal acquisition in
general and the GS-1102 career field in particular?
P.S. In FY99 the top 100 contractors received 52 percent of all
obligations in excess of $25,000. The top ten contractors
received 28.3 percent of those obligations. Small businesses of
all kinds received 23 percent of all obligations, including
obligations of $25,000 or less. Everybody else divided what was
left.
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