June 29 2007 Copyright 2007 Business Research Services Inc. 301-229-5561 All rights reserved.

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Washington Insider

GSA is considering allowing state and local governments to spend federal grant money on purchases through its Multiple Awards Schedules.

Michael Sade, deputy commissioner of GSA’s Federal Acquisition Service, said state and local officials could use the schedules to spend Homeland Security grants.

State and local entities are already allowed to buy IT products and services through GSA Schedule 70, but those purchases accounted for just slightly more than 1% of the schedule’s IT sales last year.

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The Defense Department said it is moving to impose tighter controls on its use of undefinitized contract actions, such as letter contracts and modifications.

The Government Accountability Office found DOD is not adequately tracking the use of such contracts, which are intended to be used to fill urgent needs. Auditors said DOD installations have also resorted to UCAs to keep programs running on schedule and because of inadequate acquisition planning.

The GAO report says DOD keeps track only of letter contracts, not modifications or task and delivery orders. “DOD faces a potentially large gap in its data and thus does not know the extent to which it is using UCAs,” the auditors said.

According to regulations, after a UCA is issued a definitive contract must be signed before half the money is spent or 40% of the work is completed, or within 180 days, whichever comes first. The auditors found DOD installations routinely missed the 180-day deadline. When that happens, they said, “the government risks paying unnecessary costs.”

Most often, the report said, the contractor did not submit a proposal in time to meet the deadline. Auditors said contractors have little incentive to submit timely proposals because they are almost always reimbursed for costs incurred before a definitive contract is signed.

DOD said it agreed with GAO’s recommendations for improved oversight and control.

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The Energy Department wants agencies to explain in writing their reasons for not buying energy-efficient products.

The 2005 Energy Policy Act requires executive branch agencies to buy products that meet ENERGY STAR or Federal Energy Management Program standards. Exceptions are allowed.

The Energy Department plans to propose a rule requiring annual reports from each agency, documenting and justifying each exception.

The advance notice of proposed rulemaking is RIN 1904-AB68 in the June 19 Federal Register. Comments are due by Aug. 20.

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The Office of Federal Procurement Policy has released a guide for acquisitions during emergencies. The document focuses on advance planning for the unpredictable and includes specific guidance on the flexible techniques that can be used in emergency procurements.

OFPP said the guide reflects lessons learned in the troubled response to Hurricane Katrina and the much-criticized Iraq reconstruction.

It is available at www.whitehouse.gov/omb/procurement/guides/emergency_acquisitions_guide.pdf.

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NASA has awarded its Exceptional Service Medal to Thomas May of the Jet Propulsion Laboratory for significant sustained performance in establishing the strategies for, and leading the ongoing implementation of, JPL’s Socioeconomic Business Outreach Program. May was honored at an award ceremony at the Pasadena, California, lab on June 2


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