CSA UNVEILS TOP TEN LIST FOR 2005

The 2005 Top Issues for the Contract Services Association (CSA) were announced at its 40th Annual Conference in San Diego. Prior to the Conference, CSA members recently voted on the issues on which they believe the Association should focus in the coming year. A full synopsis of these issues is discussed below.

Standardize Past Performance Evaluation Process

CSA supports the use of past performance as an evaluation factor used during the source selection process. However, certain inconsistencies in its application, as well as questions regarding the ultimate confidentiality of such information, continue to exist. Specific areas that need to be addressed include utilizing a centralized system that is fair and accurate; maintaining relevancy; providing reference checks; improving the evaluation process (including the use of neutral ratings); and allowing timely contractor response to less favorable ratings. Improvements in these areas will allow for better use of past performance information as a valuable tool in evaluating prime contractor performance on overall contract requirements as well as evaluating a company’s performance in meeting the requirements of its subcontracting plans.

Address Procurement Process Improvements

The role of Government contracting is challenging, particularly in an era of rapidly changing, commercially driven technological advances. A serious review is needed of current Government rules and their impact on business practices, and whether they support or weaken industry’s technological capabilities and financial strength. Acquisition policies (e.g., best value and performance-based acquisition), as well as recent regulations (e.g., the Safety Act) affect the ability of service companies to compete for Government contracts.

Address Small Business Size Standard and Certification Requirements

Federal regulations currently provide that a firm awarded a contract that was set-aside for small businesses may perform the contract for its entire term, even if that firm eventually outgrows its small business size standard. This policy recognized that small businesses invest significant financial and human resources to obtain Government contracts. However proposals abound to require ongoing small business re-certifications once a contract is awarded. A further potential adverse impact on small businesses is the proposed move from size standards based on annual receipts, or employee numbers, to a size standard based solely on employee numbers. These changes not only impact on the potential for small businesses to seek Government contracts as prime contractors, but also impacts on their ability to obtain subcontracts with larger businesses.

Enhance Implementation of Subcontracting Goals

Prime contractors are required to keep data on their subcontracts (but only those awarded at the first tier). However, this data is often not counted toward achievement of subcontracting goals (either for the contractor or the procuring agency), which would help both in measuring a contractor’s past performance, and in encouraging larger prime contractors to do business with small firms. Such initiatives will improve overall small business involvement in Government contracting.

Enact Further Services Acquisition Reform

The trend in contracting for services is significant for all industry. The Government relies more and more on private industry to deliver cost-effective, quality services. However, reforming the way services are acquired lags behind improvements in weapons system acquisition. CSA supported the enactment of a “Services Acquisition Reform Act.” This measure is aimed at increasing the utilization of commercial best practices in the services arena. CSA also is leading a taskforce on reviewing the laws and regulations specifically addressing service contracting (e.g., those found in FAR Part 37).

Improve GSA Schedule Use

Agencies are increasingly using multiple award contracts to satisfy their procurement needs. However, getting on the schedules – and once on, getting contracts – can be a complicated and confusing process, especially for small business with few bid and proposal funds to spare. CSA members believe the application process should be simplified, and the marketing process for companies on the schedule needs to be streamlined.

Improve Relationships between Small and Large Businesses and the Small Business Administration

More issues unite, rather than divide, companies within the service contracting industry – whether those companies are small, medium, or large. However, an adversarial relationship often develops that hinders the ability to work on acquisition policy and small business issues to the benefit of all. CSA has established partnerships with various military services to address issues of mutual concern. Using that as a model, CSA also entered into a partnership with the Small Business Administration that would assist with training of small businesses, resolution of issues, and improved communication for all sizes of Government contractors..

Decrease Burdensome Regulatory Requirements

Burdensome Government contracting regulations deter companies from doing business with the Government, and have a detrimental impact on the overall Government procurement process – particularly hindering the ability of small businesses to participate in the Federal marketplace. Implementation of new burdensome regulations is contrary to the significant acquisition streamlining measures championed by the Congress, the National Performance Review, and the President’s Management Agenda.

Improve Consistency in Best Value Contracting

CSA believes that a quality-based best value approach to contracting is necessary. Properly designed and executed, such a system will materially improve the quality, responsiveness, and cost efficiency of the goods and services acquired by the Federal government and will enable the balancing and trading off of technical, price, and other relevant considerations in the source selection process. Our efforts are aimed at enhancing contracting opportunities for CSA members, especially in competitions for commercial activities.

Expand Competitive Sourcing of Commercial Activities

Current statutes and existing Federal policies unduly limit the use of competitive sourcing and privatization options to achieve the performance of commercial activities more efficiently and at lower total operating cost. Therefore, we should readdress the nature and character of public-private competition and find new ways to streamline the process while still preserving its integrity. The 2003 Revisions to Circular A-76 were aimed at doing just that. CSA also supports the Federal Activities Inventory Reform (FAIR) Act, and will continue working with the agencies to encourage competition of those in-house activities that are commercial in nature. CSA will endeavor to repeal a number of statutes that are impediments to outsourcing as well as continue to fight against any anti-outsourcing legislation.

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CSA is the nation’s oldest and largest association of service contractors representing over 200 companies that provide a wide array of services to Federal, state, and local governments. CSA members do over $40 billion in Government contracts and employ nearly 500,000 workers, with two-thirds of those employees being members of private sector employee unions. CSA members represent the diversity of the government services industry and include small businesses, 8(a)-certified companies, small disadvantaged businesses, women-owned, HubZone, Native American owned firms and global multi-billion dollar corporations. CSA promotes Excellence in Contracting by offering significant professional development opportunities for government contractors and government employees, including the only program manager certification program for service contractors. For more information on CSA, go to: www.csa-dc.org.