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Helpful Links
SCS Upcoming Events
Take a Break to Educate Charleston Seminar
"Staying Competitive in an Ever Changing Contracting Environment"
*Hosted by SCS:
April 23, 2013
Hilton Garden Inn
Charleston, SC
Time: 8am-12:30pm
For more information and to register for event,
9th Annual Waltz for Wishes
* For Make-A-Wish Foundation:
April 27, 2013
Downtown Marriott
Knoxville, TN
Time: 5:30pm
For more information and to register for event,
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Greetings!
It's somewhat ironic. Just a few years ago, the overall economy was struggling; the stock market was seeing all time lows. But government contractors didn't feel too much pain at that point. Contracts were being awarded and the amazing stimulus money was flowing. I know we felt cushioned from the economic downturn. Now the tables are turned - the economy is rebounding; the stock market just saw an all-time record high. But the government contractors are now seeing their recession through sequestration. Our March 1 deadline came and went. The only thing we know is that the President did sign the order for the 'across the board spending cuts'. But no one really knows what that means. We're all still sitting here wondering which budgets will be hit the hardest. We're all still waiting on contract awards and praying for solicitations to hit the streets. I had hoped by the release of this newsletter that we would know more, but it seems to be the same story. There is a great deal of rhetoric but in the end... it's a waiting game.
So what are contractors undertaking? Most seem to be doing the same thing the government agencies are doing - waiting.
But, what should or could we be doing?
The truth is the government is and will continue to be one of the largest sectors of our economy - if not THE largest in some industries. Defense spending has increased in the last 10 years by more than 2 ½ times from less than $300 billion to more than $700 billion every year. Even with some % of cuts, that's still a very large amount of money. And, that does not include hundreds of billions spent to get the Department of Homeland Security up and running or the large growth of all the intelligence agencies. DHS is 16 agencies / divisions spending another $100 billion per year. The 16 agencies that make up the US Intelligence Community spent more than $50 billion in 2010. And that's just the money we know about - not the top secret programs.
Many of us are entrepreneurs and / or former military, both vocations know that with each challenge comes one or more opportunities. So, here are a few things we can do while we wait:
Know your current contracts:
What is the funding - fully or incrementally?
What is the purpose - mission or support?
Are you doing any work "at-risk?" Other words, without proper approvals.
Keep open good lines of communcations:
Stay in touch with your customers.
Keep your own people informed.
Review your processes for making decisions about spending or on contracts.
Keep up the good work:
Manage your current work even more carefully.
Keep good documentation of everything that is happening.
Make sure your customer understands the value and quality of your work.
Remind people of your great past performance and ability for the future.
Finally, it may be time while you have time to actually invest in the future. At the very least look at your organization and your people and think about do I have the right talent in the right places to not only weather this particular storm but also to grow when it's time to do so. Are we strong enough to come out as one of the winners of this chapter in government contracting? Should I invest in some advice and / or tools that will payoff down the road? Being careful in times like this is important but so is being ready for what is next.
Regards,
Laura Davis,
President
Strategic Consulting Solutions |
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Strategic Consulting Solutions has been a sponsor of the local Make-A-Wish Annual Waltz for Wishes for several years. This has been a true blessing to hear the stories of the children and their families. We've also had the chance to talk with some of them. At one of the events, we were carrying the plaque that had been given to SCS when a man approached us to look at the plaque. His daughter, who was a Make-A-Wish child, had drawn the picture they used for the plaque that year. It was so touching to see his face as he saw the plaque for the first time and then to hear their story.
The 9th Annual Waltz for Wishes will be held at the Downtown Marriott in Knoxville on April 27. See the link below to get tickets or contact Laura Davis at 865-220-0051 for more information.
Make-A-Wish HERE
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Services lay out sweeping state-by-state spending cuts
by Tom Vanden Brook
USA Today
Budget cuts by the Air Force, Army and Navy scheduled to take effect March 1 will force almost $34 billion in wage and spending reductions and prompt furloughs or layoffs for millions of people, according to documents obtained by USA TODAY.
The Army's estimated cuts will force $15 billion in wage and spending reductions and prompt furloughs or layoffs for 300,000 people nationwide, while the Navy could face $11 billion in similar cuts affecting a potential 186,000 employees, records show. The Air Force estimates $7.7 billion in lost pay for its civilian employees.
Hardest hit states by the Army cuts include Alabama, Texas, Virginia and Pennsylvania. Among the least affected: Delaware, Wyoming, Montana and Rhode Island.
Read more HERE
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DOE: Budget cuts may slow nuclear waste cleanup
by Matthew Daly
Associated Press
Cleanup of radioactive waste at nuclear sites across the country - including one in Washington state where waste tanks may be leaking 1,000 gallons per year - would be delayed under automatic spending cuts set to take effect Friday.
Energy Secretary Steven Chu says the cuts would delay work at the department's highest-risk sites, including the Hanford Nuclear Reservation near Richland, Wash., where six tanks are leaking radioactive waste left over from decades of plutonium production for nuclear weapons.
Read more HERE
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The National Defense Authorization Act of 2013 will Change Small Business Contracting and Teaming
by Jackson W. Moore
Excerpt from Smith Anderson Client Alert
Federal government contractors that contract or team with small businesses must become familiar with recent changes resulting from the National Defense Authorization Act of 2013, signed into law in early January (the "NDAA").
Years ago, Congress established a small business prime contracting goal of 23% across all federal agencies. See 15 U.S.C. § 644(g). For more than a decade, the Government has missed this target. The NDAA's changes, including the following, are intended to help businesses meet this contracting goal:
- Increase of Surety Bond Cap for Construction Contracts.
- No Contract Award Cap for Women-Owned Small Business Concerns.
- Possible Expansion of Mentor-Protege Program.
- Changes to Performance Percentages by Small Business Prime Contractors.
- Failure to comply with subcontracting plans will impact past performance evaluations.
- Penalties for Misrepresenting Small Business Status, and a New Safe Harbor.
Read entire alert HERE
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SBA Administrator Karen Mills Announces Her Departure
Karen Mills announced on February 11, 2013, that she will departing from SBA. Following is the note that was sent to SBA staff.
Dear SBA Team:
After four years as Administrator of the SBA, I have let President Obama know that I will not be staying for a second term. I will stay on until my successor is confirmed to ensure a smooth and seamless transition.
Serving as SBA Administrator, and seeing this Agency rise to meet the economic challenges we faced when I arrived four years ago, has been both a privilege and an honor.
Read entire letter HERE
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Press Release: Strategic Consulting Solutions and Parsons Consulting Solutions, LLC Announce Formation of New Entity to support Deltek Costpoint Oak Ridge, TN
January 24, 2013
PRWEB.com
Strategic Consulting Solutions and Parsons Consulting Solutions have forged a new alliance, PDS Consulting Solutions, LLC (PDS), that will implement, support and host Deltek Costpoint and related products.
The two principals have worked together as users and implementers of Deltek GCS Premier and Costpoint collectively for nearly 30 years, starting together in the mid 1990's as an original beta site for Costpoint. "We are very excited about the launch of the new company, it consolidates into one entity strategic partnerships that will provide customers with a strong knowledge base of the product combined with exceptional and innovative services," explained Kenneth Parsons, co-founder of PDS.
Individually, each co-founder earned Partner status with Deltek. Both proprietors, successes by their own merit, recognized the synergy that existed when the two combine forces. "We wanted to create an easy path for current and future clients to retain their services, to host, implement and support Costpoint quickly and effectively by streamlining the process from beginning to end" explained Laura Davis, co-founder of PDS. The result being PDS Consulting Solutions.
Full press release HERE |
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Sequester could cost Knox business millions
by Ed Marcum
Knoxville News Sentinel
The possibility of drastic government spending cuts if the "sequester" takes effect Friday has some Knoxville area businesses on edge, with one company worried about the loss of millions in government contracts.
Aqua-Chem, a Knoxville-based producer of water purification equipment, stands to lose more than $12 million as contract work on seven Navy vessels would be either deferred or canceled, said David Gensterblum, Aqua-Chem president and CEO.
Also, the Marine Corps may delay procurement of a water purification system from Aqua-Chem, which would mean a loss of $3-5 million over several years, he said.
"I understand the political aspects, but sequestration is not a good strategy for our country going forward," he said.
Read more HERE |
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Deltek Sequestration Playbook Webinar March 12!
Join Deltek March 12, from 2 p.m. - 3 p.m. EDT, for Surviving Sequestration: Your Playbook for Profitability Navigating Through Troubled Times, a free webinar filled with expert insight and recommendations to help your organization adequately prepare and adapt to these changes.
Webinar highlights:
More information and registration HERE
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Air Force developing systems engineering contract
by Nick Wakeman
Washington Technology
The Air Force is considering what role small businesses could play on a contract that would support range, satellite control and space training systems.
A contract is being developed that would support the launch and test range system, the Air Force satellite control network and that the Space Training Acquisition Office. In this request for information, the service wants to know if there are any small businesses that could bid as primes or plan to participate as subcontractors to a large company.
The Air Force Space and Missile Systems Center is specifically looking for small businesses that can perform engineering and integration services under the Unified SE&I Contract that is being developed.
Read more HERE |
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Frank Munger: Y-12 embraces change to secure future work
by Frank Munger
Knoxville News Sentinel
Everybody tends to link the future of Y-12 to the Uranium Processing Facility, which potentially will be the biggest construction project in Tennessee history. The price tag for the new production center at the nuclear weapons plant has been estimated in the range of $4.2 billion to $6.5 billion, with operations supposed to come online around 2020.
Y-12's future is actually tied more to the work that's assigned to the Oak Ridge plant, and that's ever-changing.
While the missions are increasingly diverse, much of the plant's work is tied to refurbishment - and in some cases rebuilding - nuclear warhead components or dismantling old systems and recycling the materials. In that role, Y-12 continues to support nuclear deterrence and maintaining the stockpile.
More HERE |
SPAWAR office links small business with government
by Matt Tomsic
Charleston Regional Business Journal
SPAWAR's small business office advocates for small businesses within and outside the Department of Defense agency and provides resources for small businesses looking to do business with the government.
Check out the video link for the synopsis of the article. The article was published in the Charleston Regional Business Journal.
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* GSA News *
Government Contracting Trends 2013
Excerpt from FedLinx FedTips Winter Edition 2013
We now have a little more than one month of 2013 under our collective belts. As you continue to make plans for this year, keep these contracting trends in mind:
1. From our own Tom Suher: More agencies are using GSA Schedules to negotiate Blanket Purchase Agreements (BPAs). If you aren't sure how BPAs work, give Tom or David Houston a call at 336.379.0442.
2. From Lee Dougherty of General Counsel, PC: Continued movement away from best value to price only.
3. From Baker Tilly Virchow Krause LLP: Continued deterioration of government contract audit and oversight environment. "Over the last several years as deficit spending became highly politicized, we've seen renewed focus on contractor 'fraud, waste, and abuse' and intolerance for anything other than perfect compliance. Such an environment will persist throughout 2013 and contractors will continue to bear the significant cost of these high expectations." If you are concerned about your government contracts compliance program, call us today.
Excerpt from FedLinx FedTips Winter Edition 2013
In the GSA Winter 2012 Steps Newsletter, several clarifications were offered for submitting proposals through eBuy. First, GSA reminded contractors that when responding to "RFQs/ RFIs through eBuy to quote only Schedule contract items through the system. Contractors should not quote prices for any products or services that have not been awarded on their MAS contract; such items are commonly referred to as 'open market items.' The purpose of the eBuy system is for quoting Schedule contract items only."
A second issue that frequently appears with eBuy purchases "is where one contractor quotes items from another contractor's Schedule contract without any formal agreement. It is not permissible for contractors to sell other contractor's products or services without an authorized dealer agreement; the dealer's name and address should be listed on the approved Schedule price list. If quoting in this situation it is recommended that you provide a copy of such agreement and evidence that it is has been submitted to GSA via the price list, so that buyers will be able to understand the relationship."
Read all FedLinx FedTips HERE |
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Small business should feel first pains of sequestration
by Washington Technology staff
 Washington Technology
Military officials are warning that small businesses may feel the first effects of sequestration as the services cut their operations and management budgets.
FCW is reporting that Lt. Gen. Charles Davis, an Air Force acquisition official told Congress that sequestration will cascade down through primes and subs. He also warned of the effects of the continuing resolution, set to expire later in March.
"The absence of a final fiscal 2013 appropriations bill thrusts each military service into a planning purgatory of sorts, clouding near- and long-term fiscal programming with a fog of ambiguity," he told the House Armed Services Committee's Tactical Air and Land Forces Subcommittee.
More HERE |
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Effects of Sequestration on DOD
Darrell J. Oyer & Company Newsletter
February 22, 2013
www.darrelloyerco.com
Sequestration would cut defense spending dramatically in fiscal year 2013. DOD is taking steps to prepare for sequestration, scheduled to take effect March 1. Included in the preparations are (1) instituting a civilian hiring freeze (Navy has a freeze, DCMA does not yet); (2) laying off a significant portion of some 46,000 temporary employees; (3) curtailing more than $10 billion in funding for maintenance, mostly designated for contractors and (4) reducing base operating services by 30 percent.
DOD services and agencies were required to submit contingency plans by February 8 to address (1) furloughing most DOD civilian employees one day per week for up to 22 weeks; (2) cutting training and maintenance for units not scheduled to deploy to Afghanistan; (3) making cuts of roughly nine percent to 2,500 investment line items and (4) stopping payments of TRICARE bills toward the end of 2013 because of a $2 billion to $3 billion shortfall.
Read more HERE |
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Additional Reading from SBA
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About Strategic Consulting Solutions
Strategic Consulting Solutions is the leading provider of compliant solutions to government contractors. SCS specializes in Deltek software sales and implementation, complete accounting outsourcing, contract compliance support, contract administration and general accounting support. Whether you are new to contracting, or a seasoned contractor managing multiple, complex projects, we can help you to understand government cost accounting requirements, implement systems and processes to achieve compliance, assist you through DCAA audits, and help you accurately manage and streamline your business processes. Our team consists of professionals with extensive finance and government contracting experience. We understand the complexities of government contracting and strive to help our clients find the appropriate solutions to all of their contracting issues. |
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We focus on compliance
so you can focus on your business |
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