April 30 2004 Copyright 2004 Business Research Services Inc. 202-364-6473 All rights reserved.
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Expert Panel Will Review Procurement Laws, Regs OMB’s Office of Federal Procurement Policy will convene an expert advisory panel this summer to conduct a yearlong review of acquisition laws and regulations and recommend changes. Creation of the panel was mandated by the Services Acquisition Reform Act, passed by Congress as part of the 2004 Defense Authorization Act. According to the Act, the panel is to be made up of “recognized experts” who will “review laws and regulations regarding the use of commercial practices, performance-based contracting, the performance of acquisition functions across agency lines of responsibility, and the use of governmentwide contracts.” The law requires that the panel’s members include representatives of both government and the private sector, including academic experts. At least one member will be “a small business advocate,” said Robert Burton, acting administrator of OFPP, in his April 22 remarks at a small business conference. (See page 1.) Burton said he expects the panel to produce wide-ranging recommendations. A key focus will be the use of GSA schedules and other multiple award contracts. “We have been very concerned for years about how the schedules are operating and its impact on small business,” he said. He said small businesses make up about 70% of schedule contractors and receive about 30% of the contract dollars. “Is that something we should be bragging about and declaring victory, or is it cause for concern?” he asked, noting that acquisition professionals in government are divided on the question. GSA says purchases through schedule contracts totaled more than $28 billion in fiscal 2003, about 11% of all federal procurement. Burton said the advisory panel should consider whether the rapid growth is unfairly limiting competition. “Have we gone too far on the schedules?” he asked. Another topic the advisory panel will tackle, performance-based contracting, is a Bush administration priority. OMB has set a goal of awarding performance-based contracts for half of its services acquisitions in fiscal 2005, but officials acknowledge that many people in the acquisition workforce need additional training in the process.
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