For the Defense Department to make more cost-effective acquisitions, the department must be more realistic about its program expectations and control costs through the life cycle of products, DoD Under-Secretary of Defense for Acquisition, Technology and Logistics Frank Kendall said at a May 23 Center for Strategic and International Studies event.
The Defense Department paid 31.8 percent more for the average unit price of prescription drugs than the Veterans Affairs Department across a sample of 83 drugs, says a Government Accountability Office report (.pdf) dated April 19 but only released publicly May 20. The DoD paid 66 percent more than the VA specifically for generic drugs, the report says.
By using private sector procurement techniques such as setting savings goals, the federal government could save $12 billion a year on aquiring services, a recently released April 15 Government Accountability Office report (.pdf) says.
Set-aside contracts for women-owned small businesses no longer have a maximum value, under an interim final rule published May 7 by the Small Business Administration. Previously, a contract could not exceed $4 million to be eligible for the Women-Owned Small Business Program, unless it was a manufacturing contract, in which case it could not exceed $6.5 million.
The Defense Department has revised its 1996 directive on non-lethal weapons with the intent of fostering their future development and procurement, although without specifying exactly how it'll do so. One non-lethal weapon s the Active Denial System, which delivers a man-sized heat beam to stop someone from approaching without killing the person.
There's too much focus on certifying disadvantaged businesses for a Transportation Department program designed to support them, and not enough on whether they actually receive any contracts, the DOT office of inspector general says. In Maryland, about 4,800 businesses are certified for the program, but only 560 have received work through it.
The Defense Department didn't properly award performance based payments to contractors between 2009 and 2011 because DoD didn't properly negotiate and verify the contractors' need for contract financing or level of investment before authorizing the payments, an April 8 DoD Office of Inspector General report (.pdf) says.
Agencies say they lack money for training acqusition staff, says the Government Accountability Office in a newly-released March 28 report (.pdf). Twenty of 23 agencies said it was difficult to obtain adequate funding for the training and 19 of 23 said it was difficult to acquire funding for sufficient staff to manage training, the report says.
Contractor employees should make no more than the vice president, who is currently paid $230,700 per year, the administration says. President Obama called for a reduced cap in 2011 when the limit, based on private sector executive pay, reached $763,000.
The Superior Supplier Incentive Program could offer more favorable progress payments or fewer audits to Navy contractors who have excelled in the past, according to a notice in the Federal Register . During the planned pilot phase of the program, contractors would be judged for product quality, control control, management responsiveness and other factors.