The Office of Federal Procurement Policy’s push for performance-based acquisition poses risks for technology contractors, according to the market research firm Input.

The report says increased bid and proposal costs on performance-based contracts may drive some small firms away.

While OFPP is providing training on PBA for federal personnel, Input says, “The government is struggling with PBAs and shifting risk to industry.”

A proposed rule would require all agencies to buy commercial software and software maintenance through the SmartBuy enterprise software licensing agreements.

The rule, published in the Oct. 31 Federal Register, says agencies could buy software and services outside SmartBuy only after filing a written justification.

The FAR councils said the goal of SmartBuy is to leverage the government’s buying power and save money.

GSA, which runs the program, has negotiated six licensing agreements with software providers, including three with small businesses, the notice said.

The proposed rule is FAR case 2005-014. Comments are due Dec. 31.

Defense Department buyers wasted $600,000 by paying GSA to help in placing orders against the Air Force’s NETCENTS contract, the DOD inspector general said.

The IG urged that the responsible people responsible be disciplined.

Auditors said the DOD components paid fees ranging from 2% to 5% for GSA’s assistance. They said the contracts should have been handled through DOD contracting shops.

The director of defense procurement and acquisition policy, Shay Assad, said he will issue a policy memo outlining procedures for such assisted acquisitions.

DOD officials have argued that they need the services of GSA and other assisted acquisition shops because of a shortage of procurement personnel.

The report is number D-2008-007 at www.dodig.mil.

SBA is proposing changes in the size standard for Heating Oil Dealers, NAICS code 454311, from $11.5 million in average annual receipts to 50 employees.

The agency wants to change the standard for Liquefied Petroleum Gas (Bottled Gas) Dealers, NAICS code 454312, from $6.5 million in average annual receipts to 50 employees.

SBA says large and fluctuating increases in the prices of heating oil and propane indicate that employment is a more stable measure of firm size, rather than receipts.

The proposed rule is RIN 3245-AF67. Comments are due Nov. 30.

SBA is considering a waiver of the nonmanufacturer rule for Irradiation Apparatus Manufacturing.

The agency believes no small business manufacturers supply these classes of products to the federal government.

Comments are due Nov. 15.