Pick of the Day:

Pick of the Day:
Legislation10-14-08: President expected to sign FY2009 defense authorization act today. President George W. Bush is expected to sign the fiscal year (FY) 2009 national defense authorization act into law today, reports Federal News Radio. The legislation (S. 3001) includes a number of government-wide contract reform provisions, including language that would ensure the proper use of cost-reimbursement contracts (section 864), improve the management of interagency acquisitions (section 865), and require the linking of award and incentive fees to acquisition outcomes (section 867) (see What’s New in Acquisition, September 24, 2008). The measure also provides a 3.9 percent pay raise for military personnel. hID-13728 

Bush to sign DoD authorization bill (Federal News Radio, October 10, 2008 ) newsID-18855

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Department of Defense10-14-08: Contractors concerned defense spending will see cutbacks. Defense contractors are worried that the Department of Defense (DoD) budget could begin leveling off after the next administration takes office, due to both the recent economic downturn and $700 billion bailout package and both presidential candidates’ talk of bringing U.S. troops home. Faced with a possible contraction in DoD sales, including major weapon programs, some firms are diversifying. Bethesda, MD-based Lockheed Martin, for example, is pursuing information technology services and support to peacekeepers to offset any slowdown. “Our strategy is to leverage our core capabilities in adjacent markets,” said Tom Jurkowsky, a Lockheed spokesman. Major weapon programs such as Boeing’s Future Combat Systems and a future Navy destroyer program designed by Northrop Grumman could see cutbacks. “The Pentagon has gotten anything it wanted mainly because of the wars,” remarked Representative John Murtha (D-PA), chairman of the Defense Subcommittee of the House Appropriations Committee. “We’re going to be to the point where they’re going to have to come to some real justifications of what’s needed. You can’t have everything and you’re not going to get everything,” he commented.[Please note that first-time viewers of the Washington Post may be asked to register (it’s free) before viewing this article.] hID-13727 

Balancing Defense and the Budget (Washington Post, October 13, 2008 ) newsID-18853 Defense contractors brace for slowdown (Washington Technology, October 13, 2008 ) newsID-18854

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Department of the Navy10-14-08: RFP for NGEN expected by spring 2009, say Navy officials. Speaking at an industry luncheon in Arlington, VA, on Friday, top Navy information technology officials said the department expects to issue requests for proposals (RFPs) by spring 2009 for the Next Generation Enterprise Networks (NGEN) program (see What’s New in Acquisition, September 26, 2008), a follow-on from the Navy-Marine Corps Intranet. The Navy currently is examining 43 white papers on NGEN submitted by contractors, and it appears the RFP could be divided into several functional areas, such as hardware and software services and wide area and local communications. Additional industry days are planned for December and early next year. The service is creating a special program office that includes both Navy and Marine Corps personnel to provide governance and oversight for the contract; it should be finalized in the next few weeks. hID-13726 

Navy plans to ask for NGEN proposals by spring (NextGov, October 10, 2008 ) newsID-18851 Navy may break Intranet contract into four pieces(Federal News Radio, October 13, 2008 ) newsID-18852

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Department of the Army10-14-08: Army investigates defense contractor for possible overcharges. The Army Criminal Investigation Command is leading an inquiry into whether a defense contractor providing services in support of U.S. troops in Iraq overcharged the government, according to an Associated Press article on Federal News Radio. Combat Support Associates (CSA) of Orange, CA, which provides vehicle maintenance, computer repairs, and security work at defense facilities in Kuwait, has indicated it is cooperating with investigators. “CSA has acted in accordance with its contract and no allegations have been conveyed by investigators,” noted a company spokesman. In 1999, the company won a ten-year cost-plus contract initially estimated at $547 million, but its value has risen to some $2.2 billion because of the wars in Iraq and Afghanistan. hID-13721 

Gov’t probes US defense contractor over payments (Federal News Radio, October 10, 2008 ) newsID-18845

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