November 23 2012 Copyright (c) 2012 Business Research Services Inc. 301-229-5561 All rights reserved.

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  • DOD releases Better Buying Power 2.0: Limiting fixed-price deals

    Limiting fixed-price deals: Defense Department officials released a draft acquisition strategy called Better Buying Power 2.0 that aims to incorporate lessons learned since the department rolled out the first phase of the strategy in 2010.

    Frank Kendall, undersecretary of defense for acquisition, technology and logistics, told reporters during a Pentagon briefing that the goal is to provide more capabilities to warfighters more efficiently during a time of budget cuts.

    The second phase will go into effect in early 2013 following a two-month comment period.

    The new strategy has 36 initiatives grouped into seven areas, replacing the 24 initiatives in Better Buying Power 1.

    Areas of focus include curbing utilization of fixed-price contracts, which had been promoted under the 2010 strategy, Kendall said in the briefing. The goal is to refine guidance so that appropriate contract vehicles are used, he said.

    The results of the 2010 guidance on fixed price was “an overreaction,” Kendall said in the briefing. Fixed price “was being used for anything, and that was not what we wanted.”

    However, the new approach has brought some criticism. Scott Amey, general counsel for the Project on Government Oversight watchdog group, said it would shift risks and costs from contractors to the Pentagon, according to an article in Business Week.

    Another area of emphasis in the second phase is improvement of the acquisition workforce, Kendall said.

    For more information: Pentagon briefing: http://goo.gl/eodxB Kendall memo, published by Federal News Radio: http://goo.gl/voLMW


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