Service Contractor Magazine - Dec. 2011 by Professional Services Council

December 2011 / Published by the Professional Services Council

Social Media and the Government ALso inside: 7

Sounding Board: SOLVING the SKILLS CHallenge

PARTNERSHIP ZEN

PREFERENces in a globalized economy

security in the cyber age

Marketview 2012: the PSC Spring Conference

Save the Date - March 18 - 20, 2012 Camelback Inn â&#x20AC;˘ Scottsdale, Arizona

The members-only spring conference focuses on the broad technical services market, including trends and business opportunities in logistics, installations, range support, and more. Speakers include top DoD, military department and civilian agency officials in each area.

December 2011 Published by the Professional Services Council Service Contractor is a publication of the Professional Services Council 4401 Wilson Blvd., Suite 1110 Arlington, VA 22203 Phone: 703-875-8059 Fax: 703-875-8922 Web: www.pscouncil.org All Rights Reserved PSC Staff Stan Z. Soloway President & CEO soloway@pscouncil.org Alan Chvotkin Executive Vice President & Counsel chvotkin@pscouncil.org Carrington Blencowe Manager, Event Support blencowe@pscouncil.org Bryan Bowman Manager, Marketing bowman@pscouncil.org Matt Busby Manager, Member Services busby@pscouncil.org Elise Castelli Manager, Media Relations castelli@pscouncil.org Karen L. Holmes Office Manager/Receptionist holmes@pscouncil.org Roger Jordan Vice President, Government Relations jordan@pscouncil.org Jeremy W. Madson Manager, Federal Affairs madson@pscouncil.org Kate Peterson Manager, Legislative Affairs peterson@pscouncil.org Melissa R. Phillips Director of Meetings & Events phillips@pscouncil.org Robert Piening Director of Finance piening@pscouncil.org Jean Tarascio Membership Associate tarascio@pscouncil.org Kristine Thomas Executive Assistant thomas@pscouncil.org Callander S. Turner Vice President, Marketing & Membership turner@pscouncil.org For advertising or to submit articles or items for the Member News section, contact: Bryan Bowman

Social MEDIA how the government and industry engage via social media

Sounding Board:

Solving the Skills Challenge

SMALL BUSINESS

teaming up for partnership Zen.

Annual Conference RECAP

Policy Spotlight

4 Presidentâ&#x20AC;&#x2122;s Corner / 17 Domestic Preferences in a Globalized Economy 24 Bill Tracker / 34 Security in the Cyber Age / 36 Committee Corner 37 PSC Scene & Heard / 38 Member News / Inside Back: 2011

Government Contractor Awards Professional Services Council

Service Contractor / December 2011 / 3

PRESIDENT ’S CORNER

t’s really no surprise, but as we near the end of the first quarter of the federal fiscal year, the government’s fiscal direction remains murky at best. As a result, our market continues to lack the kind of predictability that means so much to the agencies and our companies. Even as the fiscal debate progresses and dominates the headlines, there are other developments of great importance and relevance to all of us. In this issue of Service Contractor we focus on several of them. Our “Sounding Board” feature is centered on what many would consider the “core” of our industry—people. The competition for talent, the challenges of developing and retaining talent, and the changing expectations of the workforce are tests faced by virtually every company in our industry. So we asked three of our Board members to share their perspectives on how current market or other dynamics have forced them to alter their human capital strategies to clear today’s hurdles. We think you’ll find their responses both insightful and informative. In keeping with the theme of the workforce of today and the future, we are also pleased to feature two articles on social media. The first, authored by Monica Mayk Parham from PSC member firm Market Connections, highlights the findings of the firm’s study on how the government and our industry are using social media today. The second, by social media consultant Kathryn Corrick, explores how the British government is using social media to engage with industry and identify innovative solutions. This issue also includes two important pieces on cybersecurity. In our Policy Spotlight, Alan Chvotkin, PSC’s executive vice president and counsel, explores the multifaceted nature of cyber warfare, protecting information, and emerging cyber policy. And retired Air Force Lt. Gen. Kenneth Minihan, a former director of both the National Security Agency and the Defense Intelligence Agency, shares his perspectives on how we should be thinking about and approaching those challenges.

4 / Service Contractor / December 2011

From the legal community, we feature an interesting article from Alan Gourley and Adelicia Cliffe, from PSC member law firm Crowell and Moring, which focuses on possible changes to (and the implications involved with) USAID’s rules regarding national source and origin for commodities and services procured by the agency. We also have a piece by Pamela Mazza and Kathryn Flood of member law firm PilieroMazza discussing the new eligibility criteria for companies to participate in set asides and what teaming partners need to know before agreeing to team. Finally, in this issue you will see a series of photographs from various PSC events over the last few months. Prominent among them are a series of photographs from the Nov. 1 Greater Washington Government Contractor Awards, which have been provided to us by PSC member company Deltek. That evening we had the privilege of honoring a number of companies and executives, public sector partners, and Dr. J. Robert Beyster, founder of SAIC. It was a night that once again reminded me that, despite some of the rhetoric and hyperbole, there is a lot of good and important work being done in this industry and by our government colleagues, work of which we should feel very proud. As always, if you have any comments or suggestions for us regarding Service Contractor, please do not hesitate to let us know. In the meantime, thanks, as always, for your support of PSC.

Stan Soloway President & CEO

Professional Services Council

THEY TAKE CARE OF US, WE PROUDLY TAKE CARE OF THEM.

The EMCOR Government Services division is proudly patched into dozens of military facilities that to the Army, Navy, Air Force —and the entire country. We’re relied upon 24/7 for services that range from facilities management, fire protection and transportation operations to HVAC maintenance, utility plant operations, energy services, and “green initiatives.” On our watch, these systems and others operate faithfully at peak efficiency for installations from the Washington Navy Yard to Kirtland AFB Medical Clinic in Albuquerque, NM. EMCOR provides best value through the efficient delivery of essential base operations support. No wonder we’re patched into our military’s infrastructure.

How can we be there for you? 866.890.7794 emcor_info@emcor.net Professional Services Council www.emcorgroup.com

Service Contractor / December 2011 / 5

Wyle Tackles the Tough Jobs

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6 / Service Contractor / December 2011

Experts for the 21st Century

Professional Services Council

SOUNDING BOARD:

In each issue, PSC asks members of our board of directors to offer their perspectives on key challenges facing the government services industry.

Solving the

Skills Challenge

QUESTION: What challenges have you seen in recent years to your ability to recruit and retain critical skills? What have you changed in your human capital strategies to address those challenges?

O Dan Johnson

President, General Dynamics Information Technology

ne of the biggest challenges that we’ve faced at General Dynamics Information Technology (GDIT) in recent years is the competition for highly cleared information technology professionals. Obtaining security clearances at any level is a complex and lengthy process that can result in a limited number of prospects in our marketplace. Qualified, cleared professionals are in high demand and therefore numerous companies compete in the same, limited talent pool. This issue is especially prevalent in the Washington, D.C. metropolitan area where the competition to find and keep these individuals is very high. To address this challenge, GDIT offers training, incentives and development opportunities for qualified professionals. Recruiting has clearly evolved from using traditional resources, such as employment advertisements and resume-based databases, to new social networking tools. As a result, we have incorporated tools that empower our employees with the ability to play an active role in recruiting talent for General Dynamics. An example of this is a new employee referral tool, called “Talentvine.” It pushes out new opportunities internally to our existing employees with similar clearances and skills. continued on page 31

I Wood Parker

Vice Chairman, TASC

t’s all about the people. In businesses like TASC—systems engineering services, technical analyses, advisory services, knowledge-based capabilities—it is the employees’ knowledge, expertise, skills and drive that provide the competitive differentiation that all businesses seek. Creativity, the ability to work together for a common goal, and leadership skills are a currency that applies to any business. Employees are a company’s problem solvers. Moreover, they are a company’s “face to the customer,” the point at which success is frequently determined. Leaders today must recognize that the workforce is changing dramatically. Indeed, what we are looking at is a social phenomenon of the intergenerational workforce. Successful companies are changing their human capital strategies to respond to this social reality. For over 30 years the sheer size of the Baby Boomer generation defined organizations’ social landscape. The Gen X’s and Gen Y’s will soon overtake that majority. These younger folks are continued on page 31

I Maria Proestou President, DELTA Resources Inc.

n the past 12 months, our employee retention has become increasingly challenging as a result of government insourcing, bid cancellation, and loss of government funding. Innovating from within and using research and metrics, we cultivated growth across our own company and developed three strategies to lay the foundation for growing our core competencies in order to retain our talent. The first strategy was to frame a new approach to our internship program. A consistent factor that effectively drives employee retention is accelerated individual development and the purpose of the program was to develop young professionals who would enter our workforce. Our separation metrics and exit interview data showed a 14 percent increased departure rate of employees ages 20 to 30 in the past year. Originally created to attract and provide opportunities for emerging talent to gain on-thejob training and experience, we have developed a more robust program that sets forth clear continued on page 32

Professional Services Council

Service Contractor / December 2011 / 7

By Pamela Mazza and Kathryn Flood

Small Business Teaming Partnerships–

Knowing Program Requirements Essential to Teaming Relationship Zen

he past year has created many changes within the small business contracting programs overseen by the Small Business Administration (SBA). With the creation of the WomenOwned Small Business (WOSB) program, there are now more subcategories of small business contracting programs than ever, and thus, more opportunities available for teaming arrangements. However, both large and small business must be mindful of the changes within the programs and ensure that both the small business and the teaming venture are compliant with all applicable regulations. Each program maintains its own set of requirements for both prime contractors and subcontractors—what works for the 8(a) Business Development program, for example, does not translate for Service-Disabled Veteran-Owned Small Business (SDVOSB) concerns. The key factors for most programs are ownership, control, and an examination of the day-today management of operations for the individual on which the program designation is based. However, these definitions may be different across the programs. Furthermore, new SBA regulations adopted to implement the Small Business Jobs Act of 2010 (P.L. 111-240) create stricter penalties surrounding misrepresentation of small business status, whether intentional or not. There has never been a time where strict regulatory compliance has been more important. While the majority of the small business contracting program requirements falls on the participating small businesses themselves, all contractors entering into teaming agreements with participant small businesses must have a working knowledge of the program requirements as well. As noted above, the nuances of the requirements and definitions among the various programs do not always run parallel, making compliance sometimes difficult to

understand and implement. For example, when examining the managerial control of a business, the SBA will consider the size of a concern and any quorums that might be established to exert control over the functions of the company, although a quorum in and of itself is not enough to hinder control. However, the Center for Veterans Enterprise (CVE), which certifies Veteran-Owned Small Business (VOSB) and SDVOSB concerns for the Department of Veterans Affairs (VA), routinely holds the opposite, denying VOSB and SDVOSB concerns certification for this very reason. If a business was certified as a VOSB or SDVOSB, even as little as two years ago, the examination process under the CVE has completely changed. CVE certification is a prerequisite for VOSBs and SDVOSBs that would like to contract with the VA, although SBA has instituted different requirements for its administration of the SDVOSB program. SDVOSBs are still able to self-certify for participation in non-VA SDVOSB set-asides. Another example is acceptable rights that may vest in minority owners of an 8(a) Business Development concern by SBA versus the strict limitation on such rights as applied by the CVE for VOSB and SDVOSB concerns.

8 / Service Contractor / December 2011

When teaming with HUBZone small businesses, another issue teaming partners must navigate is the disarray surrounding HUBZone eligibility. Due to the expiration of many redesignated districts as a result of the 2010 Census publication, many HUBZone small business concerns were forced to exit the program as of October 1, 2011. SBA has estimated that this has affected up to 40 percent of all previously registered HUBZone program participants. It is therefore crucial when considering a teaming arrangement with any HUBZone program participant for HUBZone opportunities that the teaming partner independently verify the eligibility of the HUBZone concern through SBA’s website. Additionally, since the WOSB program is new, naturally there will be a settling-in period with regard to the interpretation of its regulations and what does and does not constitute adequate ownership and control by the woman owner within the program. What do these changes mean for the contractor who enters into a teaming arrangement with a small business program participant? It means that both parties to the teaming arrangement must perform adequate due diligence prior to entering into any arrangement. Both sides must understand the nuances of the rules and regulations relating to the subject program’s eligibility requirements and both sides must know that the small business and teaming venture meets all program requirements to be successful. If either party to such an arrangement feels uncomfortable disclosing the level of information necessary to allay the concerns of its partner, it should seek guidance from a knowledgeable independent accountant or attorney who can confidentially verify the participant’s compliance. 3 Professional Services Council

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Service Contractor / December 2011 / 9

Social Media Use Expan Agencies, Contractors Show Different Priorities by Monica Mayk Parham Market Connections, Inc.

tweet • tweet • t w

ds in Government Space eet • tweet

bstacles to federal employees’ use of social media for work are declining. According to Market Connections Inc.’s new Public Sector Social Media Study released Oct. 18, just 19 percent of agencies surveyed reported they ban access to some or all social media sites, including Facebook, Twitter and

LinkedIn, down sharply from 2010, when 55 percent of agencies banned access. With use becoming more ubiquitous and accepted across the government, vendors need to know the right ways to engage with their federal agency customers. The study found that federal employees are using social media to inform decision making, educate the public, access information and increase collaboration, but generally do not want contractors to use networks as a means of pitching products or services. By contrast, contractors view the important benefits of social media as tools for marketing, the promotion of thought leadership and increased collaboration. Further, blogs are the No. 1 social media type federal agencies turn to for information, with 35 percent of respondents saying that they use blogs to inform decision making. Non-government specific social networks came second at 24 percent. Surprisingly, video did not even rank in the top five. While 56 percent of contractors said they were using blogs for promotion, 53 percent said they were using video. Additionally, growth in the use of mobile devices to stay connected is expanding the use of social media, which in turn will affect the form and content of information on the Internet. “We are seeing mobile usage driving social media,” said Lisa Dezzutti, president and founder of Market Connections, during the Oct. 18 release briefing. “There are implications for us as marketers in terms of how we’re delivering content. . . . Is it mobile-friendly? A 500-word blog post isn’t necessarily something people are going to want to read on their phones.”

Lisa Dezzutti, President & CEO of Market Connections Inc., addresses contractors at the Oct. 18 event releasing the new report. Photo courtesy of Market Connections.

continued on pg. 13

Service Contractor / December 2011 / 11

12 / Service Contractor / December 2011

Professional Services Council

Social Media continued from pg. 11

Federal agencies saw a significant year-over-year increase in the use of all social media sites, with LinkedIn realizing the largest growth, while the contracting community continues to use all social media at higher rates.

No one social media tool stands alone; marketing and communications campaigns need to be integrated across all these tools, just as with traditional media channels.

Social media in general saw significant increases in both public sector and contractor use, and government agencies are beginning to narrow the gap between themselves and contractors using social media. LinkedIn and Twitter showed the biggest gain among social media sites being used by federal respondents—LinkedIn grew from 32 percent using it in 2010 to 70 percent this year, while Twitter increased from 30 percent last year to 55 percent this year. Facebook and YouTube continue to grow in popularity as well. Last year, 72 percent of federal respondents said they use Facebook, growing to 86 percent this year, while YouTube increased from 61 percent last year to 80 percent this year. While all social media sites saw big gains in usage, government-specific sites such as GovLoop and GovTwit grew significantly; 35 percent of government respondents said they use GovLoop, up from just 11 percent last year, while GovTwit grew from 5 percent in 2010 to 30 percent this year. Roughly 30 percent of federal respondents reported using additional government-specific social media sites GSAInteract, GovWin and TFCN, which were not measured in 2010. Another sign of increased acceptance of social media sites: In this year’s study, 37 percent of federal government respondents said they are permitted to use social media as representatives of their agency, versus just 9 percent last year. Conversely, only 13 percent said this year they are not allowed to use social media as representatives of their organization, a significant drop from the 46 percent who said last year they could not.

Dezzutti emphasized the need to consider all these tools together, not as individual channels. “You’ve got to look at the bigger picture,” she said. “How are you linking them, integrating them, making them work together?” Other key takeaways included:

Professional Services Council

• Leverage where and how social media is being used. “Social media has become integrated into the fabric of our lives, both personally and professionally,” Dezzutti said. “Personal versus professional use is not the question. People are using it. You have to be where they are.” • Focus your efforts. Build presence in a few key areas and execute well. • Have clear objectives for implementation and a plan for measuring ROI. “Know what you’re trying to accomplish. It doesn’t have to be complex to be measurable,” said Dezzutti. • Promote your success stories, even if only internally, to help build the business case and maintain momentum around social media. Strategic Communications Group (Strategic), a public relations firm specializing in the use of social media, collaborated with Market Connections on the study. Marc Hausman, Strategic’s president and CEO, said, “The findings of the survey show how vital it is for government agencies to use social media wisely. Companies looking continued on pg. 15 Service Contractor / December 2011 / 13

Open Government, Open Business, Open Dialogue: By Kathryn Corrick

A U.K. View of Social Media and the Government

n May 16, 2011, Jeremy Hunt, U.K. secretary of state for Culture, Olympics, Media and Sport, asked citizens and those who work in fixed or mobile communications, television, radio, online publishing, video games, and other digital and creative content industries for responses to an open letter reviewing communications in the digital age. The open letter contained a series of questions aimed at gathering business and citizen ideas “to help frame the Government’s initial approach to deregulation and maximize the communications industry’s contribution to economic growth.” Hunt invited responses and ideas via a YouTube video (the department has had its own channel since 2006), and the department’s dedicated webpage encouraged visitors to have their say using the Twitter hashtag #commsreview. The open letter responses would be used to form a green paper, the U.K. equivalent of a proposed rule, to be published later in the parliamentary term for further consultation, followed by a final policy directive, known as a white paper, to be put before government. Hunt describes the aim of the communication review as to ‘‘strip away unnecessary red tape and remove barriers to growth. The wider public interest will underpin the way we address these issues.” And therein lies the key, “wider public interest”, not just to how this review is being conducted but the significant shift in how policy creation and government are now operating, which is essential for businesses to understand. On both sides of the Atlantic transparency, open government, open data and social media have been increasingly discussed. Going hand-in-hand with freedom of information, they have been part of policy and communications development for a number of years. In the U.K. we have seen the development of No. 10’s transparency Web pages, which include lists of which corporations government ministers are

meeting with and the energy usage by every government department building. The Public Sector Transparency Board set up by Prime Minister David Cameron has the agenda of ensuring the release of key public datasets, setting open data standards across the whole public sector and “listening to what the public wants and then driving through the opening up of the most needed data sets.” To make sense of this raw government data, new services are beginning to appear. Initially using U.K. data, this year saw the launch of Open Corporates. They aim to create a URL for every company in the world on their website (think of it as a corporate Wikipedia but with financial data) and import government transactional data relating to those companies where possible. So far they have 26 million companies listed across 31 jurisdictions, including the United States. Put this service together with another data driven U.K. site, Who’s Lobbying?, and you have the beginnings of a new accessible set of transparency tools. This is a significant cultural shift. The U.K. civil service has been long renowned for its closed, conservative, cautious nature, doing the bidding of ministers and senior civil servants quietly. It is now being asked to work openly, publicly and collaboratively, of which using social media for public two-way communication with citizens and businesses is just a part. For some, this is terrifying. And it is already challenging how

departments communicate consistently to everyone, rather than exclusively to the press or favored business partners. The economic climate and global down turn has also made citizens more aware of how their tax dollars are being spent. Yet unlike the past, citizens are now not only more easily able to access government spending data but to share their thoughts via social networks, forums and blogs. Obvious results are the “Occupy” protests in the U.S., U.K. and elsewhere. Catherine Howe, chief executive of the company Public-i,1 thinks this social media, transparency and open data shift has both a positive and negative impact for companies doing business with the public sector. She considers the upside to be access and connecting to the right people quickly. However, “You have to assume that every contact you have with government will end up in public. Not just contracts, but taking someone out to dinner,” she says. “This is fine if you share values as a business with the ministers or councillors you are dealing with but it will cause problems if the dealings are inconsistent with your (or their) brand.” And just like civil servants, this is something she believes that businesses will have to adjust to. Welcome to Open Business. Kathryn Corrick is a digital media consultant based in the U.K. www.kathryncorrick.co.uk

links:

http://www.culture.gov.uk/what_we_do/telecommunications_and_online/8109.aspx http://www.youtube.com/user/dcms https://twitter.com/#!/dcms http://kathryncorrick.co.uk/2011/07/04/reviewing-the-uk-communications-act-an-openletter-to-jeremy-hunt/ http://www.number10.gov.uk/transparency/who-ministers-are-meeting/ http://opencorporates.com/ http://whoslobbying.com/ http://data.gov.uk/blog/new-public-sector-transparency-board-and-public-datatransparency-principles http://www.public-i.info/

Public-i works at the local public sector level to ‘provide products that create democratic and social value from new technologies’, including a livestreaming platform used by councils.

14 / Service Contractor / December 2011

Professional Services Council

Social Media continued from pg. 13 to serve government customers need to understand how to deliver value to their social media audiences and achieve return on their marketing investment. This study is a good foundation for identifying how to do so.” A panel of government and industry experts—people with hands-on experience implementing and managing social media programs—spoke about what they have learned about using social media in the public sector market. “A lot of superiors may come to you and say they want to do [social media],” said Steve Lunceford, senior manager at Deloitte.

As familiarity grows with all social media tools, federal agencies and contractors alike are easing restrictions, allowing employees to use social media as representatives of their organizations.

“As marketers your first response should be to push back and say why, because it has to fit into an integrated strategy.” D.J. Caulfield, GSA branch chief in the Office of Customer Accounts and Research, Communications and Portal Services, agreed with Lunceford: “We came to realize early on, this is not a back-of-the-envelope kind of implementation,” Caulfield said. When agency leadership asked in early 2009 about creating a blog, rather than simply doing that, the project leaders developed a methodology. “Who are the people you want to talk with—the target audience; what objectives—what do you want to achieve; and how are you going to get there? Once you have those

Professional Services Council

three pinned down, then you pick the tools,” Caulfield said. “We had to fully evolve all those other channels and tools because we might decide a blog wasn’t the tool of choice.” Even the Department of Defense, which has different needs and limitations than civilian agencies, sees social media as a way to reach the public with more information less influenced by mainstream media editing. “This is a new environment in which we need to learn to live,” said Jack Holt, former senior strategist for emerging media at DoD and now director for policy analysis at Blue Ridge Information Systems. “We had very little shareof-voice.” Market Connections released a case study resulting from an in-depth-interview with Holt covering how the DoD used social media tools like YouTube to reach bloggers and push out what the DoD considered more factual information about the wars in Afghanistan and Iraq than traditional media’s coverage of events. “Bloggers showed up and asked questions that were very well thought out, very well researched. They had listened to the press and all of the other questions officers had been asked. The information that we put into the public debate through those blogger’s roundtables, we believe, over time changed the dynamic between the military and the public,” Holt said. Social media presents challenges to government contractors, too, said Meredith Lawrence, director of U.S. federal marketing for Polycom. In a large company such as hers, first she had to convince corporate marketing that social media needs to be in the mix, and then she had to explain “why we needed a unique federal one. You can’t just do a findand-replace for ‘enterprise’ to ‘agency.’” The DoD case study and one on GSA’s experience setting up GSAInteract, along with an executive summary and report overview, are available online at www.marketconnectionsinc. com/socialmedia. Monica Mayk Parham is marketing director for Market Connections Inc., a firm offering market research services in the areas of federal, state and local governments; information technology and telecommunications; education; healthcare; and associations and non-profits. For more information, please visit: www.marketconnectionsinc.com.

Service Contractor / December 2011 / 15

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Professional Services Council

by Alan Gourley, Partner and Adelicia Cliffe, Associate Crowell & Moring LLP

Struggling with

Domestic Preferences

in a Globalized Economy

lobalization is no longer the domain of the world’s multinationals. For the past 20 years, U.S. companies, large and small, have succumbed to the economic necessity of sourcing not just goods, but services as well, from overseas providers. And even if companies do not deal directly with foreign suppliers, the distributors and other sources from which they do purchase are likely furnishing foreign-sourced goods and services, at least in part. Moreover, given that the origin of the Buy American Act of 1933 (BAA) was the Great Depression, it is not surprising that the current extended recession has given rise to renewed focus—and indeed proliferation—of domestic preference programs in connection with providing services and goods to the federal government or under programs funded with federal grants. But the variation in the different domestic preference regimes and the global market economy realities make compliance with these domestic preference programs ever more challenging, especially at a time when increased use of the civil False Claims Act as an enforcement tool makes noncompliance ever more costly. Professional Services Council

Accordingly, it is important that any company providing services and products on federally funded projects recognize not only which domestic preference regime may be applicable to its projects, but also some of the traps for the unwary. The applicable domestic preference regime is usually a function of the source of funds and the agency involved. The BAA originally applied to all “goods” procured by a federal agency, but it must now be considered in conjunction with the Trade Agreements Act of 1979 (TAA), as amended. The

TAA in part serves to exempt certain contracts above a threshold amount (which changes every two years) from the BAA restriction (at least for goods from certain “designated countries”), but TAA also extends BAA’s domestic preference to services, and prohibits the procurement of goods or services from non-designated countries for those covered contracts. Statutes governing many federal grant programs, both domestic, like those administered by the Federal Transit Administration (FTA), and international, like those Service Contractor / December 2011 / 17

administered by U.S. Agency for International Development (USAID), have their own statutory domestic preference requirements. Most recently, the American Recovery and Reinvestment Act of 2009 (ARRA) included a domestic preference provision that applied both to federal procurements using ARRA funds, as well as to grants for state and local projects. This proliferation of domestic preference regimes runs directly counter, in at least two respects, to the federal procurement policy encouraging purchase of commercial goods and services that was established with passage of the Federal Acquisition Streamlining Act of 1994. First, as commercial providers continue to rely on a global supply chain, it becomes increasingly difficult to segregate (and in some cases even to know) the origin

“This proliferation of domestic preference regimes runs directly counter, … to the federal procurement policy encouraging purchase of commercial goods and services” of items that they may be furnishing to a federally funded project. Second, and compounding the compliance difficulty, is the fact that the various domestic preference regimes employ different tests and criteria for determining the country of origin. The BAA, for example, has long required “manufacture” (an undefined term) in the United States where at least 50 percent of the cost of the components and material are

18 / Service Contractor / December 2011

from components and material that have been domestically manufactured. The TAA does not focus on the origin of components directly, but instead employs the Customs test that looks to where such components and material have been substantially transformed into a new and different product. The ARRA Buy American provision was a hybrid. It is similar to the BAA without the component test, but some agencies have interpreted manufacture as essentially requiring substantial transformation. Each grant program has its own rules for determining country of origin. While these tests can lead to quite different results, there are areas of application that present common difficulties across the different domestic preference regimes. For example, the USAID rules are one of the few that address expressly how to evaluate origin

Professional Services Council

of a system that includes a number of different hardware components, an analysis that can present difficulties. Under other domestic preference regimes, contracting officers may define the end product as a system (versus its components), but that raises the question of where substantial transformation occurs. In cases where installation is done under a supply contract, that location may be the project site, but if furnishing a system is part of a construction project, the special rules covering “construction material” may require applying the relevant rule of origin to each item in the form it is delivered to the site. Software also presents a challenge. Where the federal procurement contract is for the development of software, GAO has recognized that such a contract is clearly a service and not subject to the BAA. Some have argued that

“None of these domestic preference regimes acknowledge the global supply chains”

buying shrink-wrap software should somehow be different, even though all that the purchaser actually obtains is the license to use the intellectual property, and even though concepts like “manufacture” and “substantial transformation” are not easily applied to software development. Further complicating the analysis is that while Customs has never articulated a rule of origin for software, it has traditionally

used the origin of software—at least where it is installed in a hardware product—as a factor to consider, sometimes the determinative factor, in applying substantial transformation to information technology products. Service contractors can face even greater difficulty in providing spares and other follow-up goods necessary to satisfy the service contract, where the spares or ancillary goods have to be evaluated independently, if not purchased as part of the original system or end product. None of these domestic preference regimes acknowledge the global supply chains of the commercial suppliers that the federal government says it wants. Indeed, the furor both domestically and abroad over the ARRA Buy American provision was precisely because, unlike in 1933, contractors and grantees in 2011 cannot simply reinsert domestic continued on page 22

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Professional Services Council

Service Contractor / December 2011 / 19

Allison Glatfelter of Alion Science and Technology Corporation poses a question to the panel during the Energy Sustainability breakout session.

Former DHS Secretary Michael Chertoff opened the conference with a discussion about homeland security a decade after 9/11 moderated by Sotera Defense Solutions President John Hillen.

The Chairman’s Banquet caps off the first day of the conference.

OFPP Administrator Dan Gordon and DHS Chief Procurement Officer Nick Nayak were featured on the Annual Procurement and Acquisition Policy Leadership Panel.

GSA’s David McClure, DHS’s Richard Spires and ODNI’s Peter Highnam talk about innovation challenges across the sectors with moderator Sudhakar Kesavan of ICF.

Julie Susman of Jefferson Consulting moderates the Healthcare IT breakout session featuring Karen Bell, chair of the Certification Commission on Health Information Technology, and Joe Paiva, executive director for Virtual Lifetime Electronic Records for VA..

PSC members stretch their legs and build their networks during a conference break. 20 / Service Contractor / December 2011

Professional Services Council

Thomas Mann of the Brookings Institution offered a provocative take on the 2012 political landscape.

More than 500 people attended this yearâ&#x20AC;&#x2122;s conference at The Greenbrier in West Virginia.

Brett Lambert, deputy assistant secretary of Defense for Manufacturing and the industrial base, discussed the collision between mission priorities and budget realities.

PSC member company executives Bill Hoover, Robin Lineberger and Donna Morea discuss what it means to be strategically agile in todayâ&#x20AC;&#x2122;s environment with moderator Todd Stottlemyer of Acentia.

Charles Rossotti, Ray Bjorklund and David Berteau presented their perspectives on key strengths and weaknesses in this sector on a panel moderated by Anne Reed of ASI.

Cameron Leuthy of Booz Allen Hamilton quizzes a panel.

Networking continues into the evening at a pre-dinner networking reception.

Professional Services Council

Former PSC Chairmen Mac Curtis and Philip Nolan. Service Contractor / December 2011 / 21

continued from page 19 sources for key components of their All commentators on the proposed “…the restriction equipment. Nor are they always able rule applauded USAID’s attempt to could exclude from to identify origin of items purchased simplify its source and nationality participation those through distributors and other resellers. restrictions, and bring them in line same commercial One agency that has undertaken an with the realities of business today. In suppliers the federal effort to revisit its regulations in light particular, eliminating the concept of government purports of globalization is USAID, which “origin,” i.e., having to identify where to want.” in February 2011 issued an advance a commodity is mined, grown, or notice of proposed rulemaking (ANPR) produced, eases the compliance issues inviting suggestions on how to modify for contractors and grantees which its “source, origin, and nationality” rules purchase items through distributors to meet the challenges of a global market and resellers. Focusing instead on while nonetheless remaining consistent with its statutory “source,” the country from which a commodity is shipped, is obligations. The ensuing August 2011 proposed rule includes more realistic in light of global and changing supply chains. numerous significant changes from the ANPR, including the However, it is clear that even USAID’s more accommodating deletion of the concept of “origin” from the rules (a concept approach leaves room for improvement. For example, USAID USAID describes as “increasingly obsolete and difficult to has added the requirement that for a commodity to have a apply in today’s globalized economy”), and a provision for country as its source, the commodity must also be available broad waivers by commodity or service type or category, for purchase in that country. “Available for purchase” in obviating the need for repeat or serial waivers for the same turn is defined as meaning that there have been documented, type or category, recognizing that many goods or services are multiple sales of the commodity or service by the supplier in simply unavailable domestically. the past calendar year. The result is that established suppliers offering new goods or services, or new suppliers of goods or services, may not be eligible to compete. Further, this rule also ignores that, in an era of electronic commerce, many companies no longer maintain static inventories in a particular location. Once again, the restriction could exclude from participation those same commercial suppliers the federal government purports to want. Buy national restrictions continue to enjoy political popularity. President Obama’s proposed American Jobs Act includes the same Buy American language that was enacted in ARRA. However, it is unclear that such restrictions actually protect U.S. companies and workers. To the contrary, the restrictions appear to create major hurdles for U.S. companies, large and small. Such rigidity likely discourages many U.S. companies from competing for federal dollars, whether in direct federal procurements or in state and local projects funded by federal grants, and the disincentives will only increase as globalization becomes more entrenched. Agency and contractor resources spent on complying with and policing buy national rules would be better spent on re-evaluating the entire framework—and even existence—of such regimes. Alan Gourley is a partner and Adelicia Cliffe is an associate with Crowell & Moring LLP, an international law firm with nearly 500 lawyers representing clients in litigation and arbitration, regulatory, and transactional matters.

22 / Service Contractor / December 2011

Professional Services Council

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Professional Services Council

Service Contractor / December 2011 / 23

Bill Tracker: 112th Congress-First Session (2011) H.R. 174

Homeland Security Cyber and Physical Infrastructure Protection Act of 2011, Thompson (D-MS) Summary Seeks to enhance cybersecurity capacity by creating and enforcing performance-based standards. STATUS Referred to Technology, Info. Policy, Intâ&#x20AC;&#x2122;l Relations and Procurement Reform Subcommittee on 2/8/2011.

H.R. 282

Federal contractors participation in the E-Verify Program, Gallegly (R-CA) Summary Would require federal contractors and subcontractors to utilize E-Verify to confirm the employment eligibility of all of their employees. STATUS Referred to Immigration Policy and Enforcement Subcommittees on 2/7/11.

H.R. 483

Electronic Employment Eligibility Verification and Illegal Immigration Control Act, DeFazio (D-OR) Summary Would require the Secretary of Homeland Security to create and maintain a publicly available and accessible online database of contracting and subcontracting individuals or entities which discloses the number of employment eligibility violations and employment eligibility verification rejections each contracting or subcontracting individual or entity has received. STATUS Referred to Immigration Policy and Enforcement Subcommittees on 2/14/11.

H.R. 598

Alaska Native Corporations contracting reforms, Thompson (D-MS) Summary Would eliminate the preferences and special rules for Alaska Native Corporations under the program under section 8(a) of the Small Business Act. STATUS Referred to Indian and Alaska Native Affairs Subcommittees on 2/14/11. Related Bill: S. 236.

H.R. 651

United States-Afghanistan Status of Forces Agreement (SOFA) Act of 2011, Woolsey (D-CA) Summary Would require the President to seek to negotiate and enter into a status of forces agreement with Afghanistan, mandating that U.S. Armed Services and contractor personnel be completely redeployed from Afghanistan. STATUS Referred to Foreign Affairs Committee on 2/10/11.

H.R. 674

3 percent withholding repeal, Herger (R-CA) Summary Would repeal the 3 percent withholding on government payments to vendors. STATUS Signed by the President on 11/21/11. Became P.L. 112-56.

H.R. 693

E-Verify Modernization Act of 2011, Gingrey (R-GA) Summary Would amend the Illegal Immigration Reform and Immigrant Responsibility Act of 1996 (8 U.S.C.1324a note) to make the E-Verify Program permanent and mandatory. STATUS Referred to Judiciary and Education and the Workforce Committees on 2/14/11.

H.R. 735

Government Neutrality in Contracting Act, Sullivan (R-OK) Summary Would preserve open competition and federal government neutrality toward the labor relations of federal government contractors on federal and federally funded construction projects. STATUS Referred to Technology, Info. Policy, Intâ&#x20AC;&#x2122;l Relations and Procurement Reform Subcommittee on 2/18/2011. Related bill: S. 119.

H.R. 829

Summary STATUS

Contracting and Tax Accountability Act of 2011, Chaffetz (R-UT) Would prohibit the award of contracts in excess of the simplified acquisition threshold unless the prospective contractor certifies in writing to the awarding agency that the contractor has no seriously delinquent tax debt. Reported by the Oversight and Government Reform Committee on 4/13/11.

24 / Service Contractor / December 2011

Professional Services Council

Bill Tracker: 112th Congress-First Session (2011)

H.R. 899

Independent Task and Delivery Order Review Extension Act of 2011, Lankford (R-OK)

Summary Would amend title 41, United States Code, to extend the sunset date for certain protests of task and delivery order contracts. STATUS Reported by the Oversight and Government Reform Committee on 3/17/11. Related bills: S. 498, H.R. 1540. Stop Taxing American Assistance to Afghanistan Act, Welch (D-VT) Summary Prohibits U.S. assistance for Afghanistan unless the United States and Afghanistan enter into a bilateral agreement which provides that work performed in Afghanistan by U.S. contractors is exempt from taxation by the government of Afghanistan.

H.R. 936

STATUS

Referred to the Middle East and South Asia Subcommittee on 3/29/11.

H.R. 1136

Executive Cyberspace Coordination Act of 2011, Langevin (D-RI) Summary Would establish within the Executive Office of the President the National Cyberspace Office to coordinate issues relating to achieving an assured, reliable, secure, and survivable information infrastructure and related capabilities of the federal government.

STATUS

Referred to Cybersecurity, Infrastructure Protection and Security Technologies Committee on 3/25/11.

H.R. 1163

Patriot Corporations of America Act of 2011, Schakowsky (D-IL) Summary Would grant a preference to “patriot” corporations in the evaluation of bids or proposals for federal contracts. Provides a definition of “patriot corporation.”

STATUS

Referred to the Oversight and Government Reform and Ways & Means Committees on 3/17/11.

H.R. 1354

American Jobs Matter Act of 2011, Murphy (D-CT) Summary Would amend titles 10 and 41, United States Code, to allow contracting officers to consider information regarding domestic employment before awarding a federal contract. STATUS Referred to Technology, Info. Policy, Int’l Relations and Procurement Reform Subcommittee on 4/8/2011. Related bill: S. 1363.

H.R. 1424

Federal Acquisition Improvement Act of 2011, Connolly (D-VA)

Summary Would reorganize the Federal Acquisition Institute to implement government-wide training standards and certification requirements and clarify FAI’s budgetary and reporting authority and requirements. STATUS Referred to Technology, Info. Policy, Int’l Relations and Procurement Reform Subcommittee on 4/8/2011. Related bill: S. 762.

H.R. 1425

Creating Jobs Through Small Business Innovation Act of 2011, Ellmers (R-NC) Summary Would reauthorize and improve the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. STATUS Reported by Science, Space, & Technology, Small Business, and Armed Services Committees on 5/26/11. Related bill: S. 493. Department of Defense and Full-Year Continuing Appropriations Act of 2011, Rogers (R-KY)

H.R. 1473

Summary Makes appropriations for the Defense Department and other departments and agencies of the government for fiscal year ending Sept. 30, 2011.

STATUS

Became P. L. 112-10 on 4/15/11. Related bill: H.R. 1.

Professional Services Council

Service Contractor / December 2011 / 25

Bill Tracker: 112th Congress-First Session (2011)

H.R. 1474

Freedom From Government Competition Act of 2011, Duncan (R-TN)

H.R. 1540

National Defense Authorization Act for Fiscal Year 2012, McKeon (R-CA) Summary Contains a number of provisions impacting the contracting community, including provisions regarding total workforce management, public-private competitions, contractor compensation caps, and contingency contracting. STATUS Passed the House (322-96) on 5/26/11. Referred to Armed Services Committee on 6/6/2011. Related bill: S. 1867. Fairness in Federal Contracting Act of 2011, Cole (R-OK) Summary Would amend title 41 of the United States Code to prohibit executive agencies from requiring the disclosure of political contributions by an entity submitting an offer for a federal contract.

H.R. 1906

STATUS Referred to Technology, Info. Policy, Int’l Relations and Procurement Reform Subcommittee on 6/20/11. Related bill: S.1100.

H.R. 1949

CLEAN UP Act, Sarbanes (D-MD) Summary Would suspend public-private job competitions indefinitely and encourage agencies to bring contracted work back in-house. STATUS Referred to Technology, Info. Policy, Int’l Relations and Procurement Reform Subcommittee on 6/20/11 Related bill: S. 991.

H.R. 2017

Department of Homeland Security Appropriations Act, 2012, Aderholt (R-AL)

Summary Would make appropriations available for the Department of Homeland Security for FY 2012. Would also prohibit funds from being used to implement any rule, regulation, or executive order regarding the disclosure of political contributions.

STATUS

Passed the House (231 - 188) on 6/2/11.

H.R. 2055

Military Construction and Veterans Affairs and Related Agencies Appropriations Act, 2012, Culberson (R-TX) Summary Would make appropriations available for military construction, the Department of Veterans Affairs, and related agencies for FY 2012. Includes automatic debarments for contractors with criminal convictions or delinquent tax debts. Would also create a new government entity with broad audit and investigative authorities. STATUS Passed by the House (411-5) on 6/14/11. Senate insists on its amendment on 7/20/2011.

H.R. 2112 Consolidated and Further Continuing Appropriations Act of 2012

Summary Would make appropriations for Agriculture, Commerce, Justice, Transportation and Housing and Urban Development Departments, NASA, and related agencies for the fiscal year ending Sept. 30, 2012. Would continue appropriations for all other agencies through Dec. 16, 2011. STATUS Became P.L. 112-55. DATA Act, Issa (R-CA) Summary Would require broad contractor reporting of federal spending similar to requirements under the American Recovery and Reinvestment Act. STATUS Placed on the Union Calendar on 10/25/2011. Related bill: S. 1222.

H.R. 2146

26 / Service Contractor / December 2011

Professional Services Council

Bill Tracker: 112th Congress-First Session (2011) H.R. 2219

Department of Defense Appropriations Act, 2012, Young (R-FL) Summary Would make appropriations for the Department of Defense for FY 2012. Would also prohibit use of funds to establish new FFRDCs, would lift the moratorium on A-76 public-private competitions, and would automatically debar contractors with criminal convictions or delinquent tax debts. STATUS Placed on legislative calendar on 9/15/11.

H.R. 2340

Transparency in Government Act of 2011, Quigley (D-IL) Summary Would change the Federal Funding Accountability and Transparency Act to require a â&#x20AC;&#x153;look backâ&#x20AC;? period of 10 years in lieu of the current 5 year period. STATUS Referred to the Subcommittee on the Constitution on 8/25/11.

H.R. 2434

Summary STATUS

Financial Services and General Government Appropriations Act, 2012, Emerson (R-MO) Would make appropriations for financial services and general government for FY 2012. Would prohibit funds from being used to implement any rule, regulation, or executive order regarding the disclosure of political contributions by contractors. Reported by the Appropriations Committee on 7/7/11.

H.R. 2665 Stop Outsourcing Security Act, Schakowsky (D-IL)

Summary

Would phase out the use of private military contractors in the federal government. STATUS Referred to Armed Services, Foreign Affairs and Intelligence Committees on 7/27/11. Related bill: S. 1428.

H.R. 2880

Contingency Operation and Emergency Oversight Act of 2011, Tierney (D-MA)

H.R. 2923

Josh Birchfield Security Contract Oversight Improvement Act, Donnelly (D-IN)

Summary Would create an Office of the Special Inspector General for Overseas Contingency Operations, headed by a Special Inspector General to conduct, supervise, and coordinate audits and investigations of the treatment, handling, and expenditure of amounts appropriated for overseas contingency operations. STATUS Referred to Subcommittee on Government Organization, Efficiency, and Financial Management on 10/3/2011.

Summary Would require DoD to establish a Quality Assurance Surveillance Plan setting standards to be incorporated in DoD oversight plans governing all security contractors operating in Afghanistan, and other future contingency operations. STATUS Referred to the Armed Services Committee on 9/14/11. Related bill: H.R. 1540. Department of Homeland Security Authorization Act of 2012. King (R-NY)

H.R. 3116

Summary Includes several provisions designed to help DHS improve its acquisiton planning, management and oversight. STATUS Reported (Amended) by the Homeland Security Committee on 10/13/11.

S. 21

Cyber Security and American Cyber Competitiveness Act of 2011, Reid (D-NV) Summary Would secure the United States against cyber attack, enhance American competitiveness and create jobs in the information technology industry, and protect the identities and sensitive information of American citizens and businesses. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 1/25/11.

S. 119

Government Neutrality in Contracting Act, Vitter (R-LA)

Summary Would preserve open competition and federal government neutrality towards the labor relations of federal government contractors on federal and federally funded construction projects. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 1/25/11. Related bill: H.R. 735. Professional Services Council

Service Contractor / Dectember 2011 / 27

Bill Tracker: 112th Congress-First Session (2011) S. 235

Lieutenant Colonel Dominic â&#x20AC;&#x2DC;Rockyâ&#x20AC;&#x2122; Baragona Justice for American Heroes Harmed by Contractors Act, McCaskill (D-MO) Summary Would provide personal jurisdiction in causes of action against contractors of the United States performing contracts abroad with respect to members of the armed forces, civilian employees of the United States, and United States citizen employees of companies performing work for the United States in connection with contractor activities. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 1/31/11.

S. 236

Alaska Native Corporations contracting reforms, McCaskill (D-MO) Summary Would eliminate the preferences and special rules for Alaska Native Corporations under the program under section 8(a) of the Small Business Act.

STATUS

Referred to Small Business and Entrepreneurship Committee on 1/31/11. Related bill: H.R. 598.

S. 341

No Contracting with the Enemy Act of 2011, Brown (R-MA) Summary Would require the rescission or termination of federal contracts and subcontracts with enemies of the United States.

STATUS

Referred to Homeland Security and Governmental Affairs Committee on 2/14/11. Related bill: H.R. 1540

S. 372

Cybersecurity and Internet Safety Standards Act, Cardin (D-MD)

S. 478

Federal Contractors Accountability Act, Pryor (D-AR)

S. 493

SBIR/STTR Reauthorization Act of 2011, Landrieu (D-LA)

S. 498

Independent Task and Delivery Order Review Extension of 2011, Lieberman (I-CT)

S. 633

Small Business Contracting Fraud Prevention Act of 2011, Snowe (R-ME)

S. 761

Acquisition Workforce Improvement Act of 2011, Collins (R-ME)

Summary Would reduce the ability of terrorists, spies, criminals, and other malicious actors to compromise, disrupt, damage, and destroy computer networks, critical infrastructure, and key resources. STATUS Referred to Commerce, Science, and Transportation Committee on 2/16/11.

Summary STATUS

Would amend the Internal Revenue Code to expand the 100 percent continuous tax levy for delinquent taxes to include payments to Medicare providers and suppliers and payments due to vendors of real property sold or leased to the federal government. Referred to the Finance Committee on 3/3/11. Related bill: H.R. 674.

Summary Would reauthorize and improve the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. STATUS Cloture on the bill not invoked in Senate by Yea-Nay vote on 5/4/2011. Related bill: H.R. 1425.

Summary Would amend title 41, United States Code, to extend the sunset date for certain protests of task and delivery order contracts. STATUS Passed by the Senate on 5/12/11. Related bill: H.R. 899, H.R. 1540.

Summary STATUS Summary STATUS

Would prevent fraud in small business contracting by making improvements to HUBZone and Section 8(a) programs and issuing an annual report in Congress outlining suspension, prosecution and debarment. Referred to the Small Business Committee on 9/22/11.

Would establish a government-wide Acquisition Management Fellows Program and related funding and reporting requirements to improve the federal acquisition workforce. Referred to the Homeland Security and Governmental Affairs Committee on 4/7/11.

28 / Service Contractor / December 2011

Professional Services Council

Bill Tracker: 112th Congress-First Session (2011) S. 762

Summary STATUS

S. 785

Federal Acquisition Institute Improvement Act of 2011, Collins (R-ME) Would reorganize the Federal Acquisition Institute to implement government-wide training standards and certification requirements and clarify FAIâ&#x20AC;&#x2122;s budgetary and reporting authority and requirements. Reported by the Homeland Security and Governmental Affairs Committee on 6/9/11. Related bills: H.R. 1424, H.R. 1540. Freedom from Government Competition Act, Thune (R-SD)

Summary Would require the government to purchase goods and services from the private sector. Provides exemptions, such as inherently governmental functions. Would require the use of competitive procedures as well as public-private competitive sourcing analysis in accordance with OMB procedures. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 4/12/11. Related bill: H.R. 1474. Information Technology Investment Management Act of 2011, Carper (D-DE) Summary Would require executive agency participation in real-time transparency of investment projects as well as performance and governance reviews of all cost overruns on federal information technology investment project. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 4/12/11.

S. 801

S. 991 CLEAN UP Act, Mikulski (D-MD)

Summary STATUS

Would significantly broaden the definition of functions that the government must perform under law and prohibit the government from undertaking A-76 competitions. Referred to the Homeland Security and Governmental Affairs Committee on 5/12/11. Related bill: H.R. 1949.

S. 1100

Keeping Politics Out of Federal Contracting Act of 2011, Collins (R-ME)

S. 1145

Civilian Extraterritorial Jurisdiction Act (CEJA) of 2011, Leahy (D-VT)

S. 1222

Data Accountability and Transparency Act of 2011, Warner (D-VA)

Summary Would amend title 41 of the United States Code to prohibit executive agencies from requiring the disclosure of political contributions by an entity submitting an offer for a federal contract. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 5/26/11. Related bill: H.R. 1906.

Summary Would clarify and expand Federal criminal jurisdiction over Federal contractors and employees outside the United States STATUS Reported by the Judiciary Committee on 6/23/11. Related bill: H.R. 2136.

Would require accountability and transparency in Federal spending. STATUS Referred to the Homeland Security and Governmental Affairs Committee on 6/16/11. Related bill: H.R. 2146.

Summary

S. 1363 American Jobs Matter Act of 2011, Rockefeller (D-WV)

Summary STATUS

Would amend titles 10 and 41, United States Code, to allow contracting officers to consider information regarding domestic employment before awarding a Federal contract. Referred to the Homeland Security and Governmental Affairs Committee on 7/13/11. Related bill: H.R. 1354.

S. 1428

Stop Outsourcing Security Act, Sanders (D-VT)

S. 1546

Department of Homeland Security Authorization Act of 2012. Lieberman (ID-CT)

Would phase out the use of private military contractors in the federal government. STATUS Referred to Armed Services Committee on 7/27/11. Related bill: H.R. 2665.

Summary

Summary Includes several provisions designed to help DHS improve its acquisiton planning, management and oversight. STATUS Reported favorably by the Homeland Security and Governmental Affairs Committee on 9/21/11. Related Bill: H.R. 3116. Professional Services Council

Service Contractor / December 2011 / 29

Bill Tracker: 112th Congress-First Session (2011)

S. 1694

Defense Cost-Type Contracting Reform Act of 2011. McCain (R-AZ)

S. 1736

Acquisition Savings Reform Act of 2011. Brown (R-MA)

Summary Would restrict DoD’s ability to enter into cost-type contracts for the production of major defense acquisition programs (MDAPs). STATUS Referred to Armed Services Committee on 10/12/11.

Summary Seeks to improve agency strategic sourcing, contract close-outs, and increase productivity improvements and cost efficiencies in services contracts.

STATUS

S. 1867

Referred to Homeland Security and Governmental Affairs Committee on 10/19/2011. National Defense Authorization Act for Fiscal Year 2012, Levin (D-MI)

Summary Contains a number of provisions impacting the contracting community, including rights in technical data, service contracting reductions, contractor compensation caps, and provisions that seek to restrict U.S. funds from flowing to adverse entities.

STATUS

Passed by the Senate (93 – 7) on 12/1/11. Related bill: H.R. 1540.

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Professional Services Council

Dan Johnson

continued from pg. 7

Our employees can easily forward new opportunities to friends and colleagues through a variety of social media channels, including LinkedIn, as well as contacts through their email network. We have made significant and continuous strides, increasing our applicant network, as well as our employee referral hires. We have also seen a rise in employee satisfaction where our employees feel they have the ability to directly affect future company performance by helping attract talented employees for difficult to fill openings. Another strategy GDIT has developed is reengineering our new hire orientation or “on-boarding” process and procedures. We have streamlined the process by replacing manual processes with a fully functioning online on-boarding tool. Our new hires now complete all pre-hire data on-line and receive company information via a webbased tool prior to their actual start date. This GDIT-wide initiative allows new employees to feel prepared, welcome and productive from day one. As an extension to our on-boarding process, GDIT provides mandatory supervisor training to all managers. This training teaches best-practices to keep managers actively involved with their employees, as well as their projects, and helps managers stay in line with the company’s objectives, goals and policies. Here at GDIT, we recognize the importance of a good working environment and empower our management team with the knowledge and tools to make this a reality. At the heart of it all and one of the keys to our success is our dedicated GDIT recruiting team. We take pride in our recruiters’ ability to not only source and locate quality candidates, but to also communicate the values of our company and work environment in a clear, concise and up-to-date manner. Our recruiting managers provide their team with a number of tools and outlets they can use to recruit and qualify candidates. Recruiting managers also provide their recruiters with numerous mandatory training programs to keep their skills and company knowledge current. With 24,000+ employees and a consistent flow of open requisitions, conducive to the growth of our business, GDIT is always looking for more effective ways to hire qualified employees and retain our valued employees. 3

Wood Parker continued from pg. 7 “hyper-connected.” They are constantly connected to multiple communications devices in order to know what and whom they need to know. They may not be technologically smarter than the Baby Boomers, but they are more comfortable with technology and their ways of communicating and relating will soon dominate organizations. Further, the traditional concept of loyalty within companies—the implied social contract of the 1950s in which a company would promise a life-long career and then a pension that would provide an employee with a reasonable standard of living during his retirement—is long gone. Today, people enter the workforce with the explicit intention to work for a given company for approximately three years and then move on. Indeed, colleges counsel their graduating students that this approach is the best Professional Services Council

way to garner broad experience and skills to position them for new opportunities in the future. These graduates cannot envision working for the same company for 30 years. Younger workers also want responsibility quickly and expect to provide meaningful input right away. Older workers, on the other hand, expect people to “earn their way up.” Younger workers tend to be anti-authoritarian and idealistic and it is critical that they perceive their work to be important and fulfilling. If they don’t believe in the purpose of the work they are doing, they will quickly disengage and leave. They are ambitious, flexible, productive, self-sufficient, and people-oriented. On the other hand, they distrust leadership, are juggling busy lives, and demand participative management. Thus, leaders need to prepare for the intergenerational workforce and the challenges these differing perspectives will produce. They must recognize that the same situation may look different to members of separate generations, reflecting their varying ways of communicating, and their expectations and preferences. What do these changes mean for recruiting and retaining critical skills? As implied by the above discussion of the intergenerational workforce, in addition to the traditional career fairs, open houses and job boards, companies need to have a social networking strategy for recruiting younger people using Facebook, LinkedIn, blogs, etc. Taking this multi-sourcing approach, a company has to recruit the right people to join the company and to place the right person in the right position. Next the company must assimilate people quickly so they become an integral part of the team. This involves orientation programs to ensure the new person understands the direction of the company and feels welcome in his team, and frequent follow-up meetings with his supervisor and team members. The most impactful part of the assimilation process is “on-the-job training” when the new employee is interacting with his new teammates. The relationship between these workers and their immediate managers and teammates is more significant than their relationship to the larger organization. Therefore, it is important to ensure that people throughout the organization know that this is part of their responsibility and that they are empowered to take action to rapidly assimilate new personnel into the company. The next step is never ending—retaining the right people in the company. There are many factors that go into the equation of whether an individual employee stays and the decision is usually personal. When employees are deciding whether to stay with a company, one obvious factor is compensation. However, as long as the compensation levels that a company uses are competitive in the marketplace, including bonuses and incentives, then compensation is not the determinant for most people, especially younger employees. Beyond the basics, companies need to provide training for new skill development and overall career progression opportunities. Moreover, formal training programs cannot develop employees to their maximum potential because the relevant knowledge base for most jobs is changing rapidly and requires extensive hands-on experience. Indeed, most of the Service Contractor / December 2011 / 31

knowledge and expertise required by employees is most effectively learned by “on-the-job” experience with their colleagues and work teams, with formal training programs focused on specific requirements and skills. We need to move to the notion of intrinsic motivators that are more aligned with today’s workers’ and frontline managers’ interests and desires, as described above. But perhaps the most important factor that is within the control of a company is the overall work environment and culture. This is one of the most critical roles of leadership: to provide the direction, resources, communications and modeling to move toward the desired work environment and culture. Statistics indicate that employees leave companies because they are disengaged from the business or because they have negative relationships with peers or their boss. Again, it is all about the people. That is why it is so important to put the right people in the right jobs. A supervisor who does not get along with other people can be a problem in terms of molding and nurturing a cohesive team, thus putting the company at risk of losing good people. Furthermore, a work environment that is open and collaborative with relationships based on mutual trust and respect is far more likely to encourage a person to remain with a company than a work environment characterized by internal competition, mistrust and tension. At TASC, where our desired work environment is one of empowerment, personal initiative and collaboration, our human capital focus is the initiative, creativity and energy of our employees. With that in mind, the most significant changes to our human capital strategy have been: 1) increasing our emphasis on employees’ professional growth through a significant investment in training and employee mobility within the company; 2) increasing our emphasis on management accountability for connecting with employees and retaining and developing them— and providing managers with training and tools to do so; and 3) increasing our emphasis on identifying and developing leadership at all levels in the company. All of our management and leadership training emphasizes collaboration, the personal connection between manager and employee, and how unique each individual and their needs and interests are. Our human capital strategy is a key element of our business strategy—not separate from it. Our objective is to be a magnet for talent and that our talent is seen as distinctive in the eyes of our customers. It’s a strategy that we have to constantly assess, question, and adjust. Henry Ford built the perfect car for his time. The Model T was inexpensive and available to the working class. However, when people started asking Ford for a car with a different color, he is reported to have said, “You can have any color car you want as long as it is black.” The decline of his company to competition began soon afterward. The principle of meeting people’s needs, desires and aspirations applies to both customers and employees. It is all about people—and as our people’s needs and interests shift, we’ll continue to evolve our human capital strategy. 3

32 / Service Contractor / December 2011

Maria Proestou

continued from pg. 7

expectations and a defined path for career progression and upwards placement within a two to three year timeframe. Each junior employee works in a training capacity on assigned tasks under close supervision from a team specialist. Each receives additional mentorship from a senior counterpart in order to establish an effective support system. Assignments build on prior training, raise skill level, provide exposure to standard operating procedures, and enhance knowledge in a particular field. Learning and development activities are evaluated regularly in order to accomplish organizational and personal advancement goals and solidify future direction. Successful completion of the program typically leads to a position conversion with promotion potential. The second strategy was to further develop our front-line managers. As the eyes and ears of our company, they have a heightened sense of awareness of what happens at our customer locations since they work onsite alongside their direct reports. Managers must understand their place in the company and the impact their actions have on employee retention. Two years ago we began surveying our management team to assess their understanding of their roles and responsibilities. The survey asked them to evaluate the tools and resources available to them along with corporate support in order to help them succeed as managers. This input led to changes that improved organizational efficiency and communications. Four key outcomes included: 1) increased frequency of line manager internal training; 2) quarterly forums to supplement training; 3) greater involvement with business development initiatives; and 4) greater participation in our hiring process. The third strategy was to continue promoting a flexible work environment, a key driver of employee loyalty. In March 2010, I was invited to participate in the White House “Forum on Workplace Flexibility,” to assist in identifying workplace flexibility initiatives and collaborate on ideas and strategies on how to make the workplace a more flexible place for American workers and families. Workplace flexibility contributes to employee morale and satisfaction, company loyalty, and employee commitment and engagement. Whereas flexible work practices have recently been dubbed “the new normal” in the workplace, they were among the founding principles at DELTA. From DELTA’s initial conception, we recognized the importance of providing flexible work options to our employees and continue to implement and improve workplace flexibility policies and practices to foster an engaged workforce. Further demonstration comes from our annual survey, where 92 percent of employees polled believe DELTA cares about them and 87 percent feel valued by DELTA. Our employees feel a strong emotional bond to our company. We remain committed to sustaining a supportive work environment that respects employee needs for work-life balance that builds lasting loyalty. 3

Professional Services Council

by Alan Chvotkin

PSC Executive Vice President and Counsel

PSC Policy Spotlight:

Federal Cyber Policy Through Multiple Lenses

ybersecurity is a broad and often undefined area of federal policy. From the Congress to the regulatory environment to the policy initiatives, there are numerous sources for the identification of issues affecting contractors and the number of proposed solutions that will have a direct impact on contractor operations, costs and compliance. Congress has numerous complimentary and conflicting initiatives pending, some of which were drawn from the legislative proposal the Obama administration submitted to Congress in May 2011 and many of them that predate that submission. In early 2011, Senate Majority Leader Reid directed the six committee chairmen with jurisdiction over parts of both the issues and the solutions to develop a comprehensive approach to cyber policy and security, drawing primarily on stand-alone proposals separately introduced in 2010 by Sens. Lieberman and Collins from the Homeland Security Committee and from Sens. Rockefeller and Snowe from the Commerce Committee, along with other proposals. Despite over six months of periodic meetings, the Senate does not appear to be any closer to reaching an agreement on a comprehensive proposal or what areas such a â&#x20AC;&#x153;comprehensiveâ&#x20AC;? proposal should cover. PSC has provided numerous recommendations and held numerous meeting with Senate staff on how to address the federal acquisition policy issues that are on the table. But it is possible that any final proposal may defer providing any federal acquisition coverage. In the House, Speaker Boehner formed a task force of Republican members, chaired by Rep. Mac Thornberry, R-Texas, to develop the outlines of a comprehensive package of legislative initiatives, but not to draft those proposals. Rather, the primary committee of jurisdiction for each element of the task force recommendations is responsible for drafting and reporting the appropriate legislation. The task force filed its report in October, addressing 10 major topic areas, but it did not specifically address coverage for federal acquisitions.

The House Judiciary Committee was the first committee to report its covered legislationâ&#x20AC;&#x201D;dealing with the elements of notification when a privacy breach occurs and providing for strong federal preemption of state laws covering notification. The full House has yet to take up this or any other related legislation. As a result, PSC is carefully monitoring the work of the key House committees. The Defense Department has moved the farthest on regulatory coverage for cybersecurity identification and reporting. Following the public disclosures of information technology network breaches by several major defense companies, DoD published in July a proposed acquisition regulation that would require contractors to control the access to and protection of unclassified program information and to promptly report any breach to DoD. Over the past several weeks, PSC and several other associations have held lengthy discussions with DoD about the scope of coverage and reporting procedures in the rule. PSC will be submitting more detailed comments on the proposed rule in mid-December. Yet the DoD rule is symptomatic of the concerns that other executive branch agencies have in protecting a wide range of important, but unclassified, information and is likely continued on pg. 35

Professional Services Council

Service Contractor / December 2011 / 33

by Lt. Gen, Kenneth A. Minihan United States Air Force (Retired)

ords matter. Understanding those words and cyber developments in the 21st century is critical to our success. Realizing this success is realizing it will mostly be bounded by mega trends. Cyber technology and with it cyber power will develop very quickly, measured generally in quarter or half years—web years. Secondly, power sharing will shift dramatically from nation states to transnational actors. Advanced commercial information technologies will be applied to most military systems. Global relationships will remain conflicted and engaged worldwide, even during so-called periods of peacetime. Lastly, the global environment will become more stressful, impacted by terrorism, natural disasters and inappropriate or illegal activity. Make no mistake, this is a competition for our future.. As we look at this time of continued transition of the cyber age, it is important to think about what it means. Again, words matter. Future battle space will not be geographically confined. Cyber technologies will present opportunities for lethal and non-lethal operations. Information dependency will present operational vulnerabilities to public and private resources. Defining, defending and exploiting the medium will be what it is all about. The defense challenge will be to try to understand the changing threat in the context of operations other than war while seeking to “own” the technology space. Some will get it right and some will not as we transition to the realities of the 21st century. Some of the issues for this time of transition are not easily resolved. The global security environment will continue to be obtuse economically and militarily. The distinctions between peace and war, national and transnational, and defense and commerce remain blurred. New thinking is emerging as we analyze the emerging threat and its diffusion of power. Asynchronous security challenges abound as we try to understand simulta-

Security

in the Cyber Age

neous information operations. What has changed? New information technology allows one to see the adversary everywhere, physically and virtually. We can target vulnerabilities with lethal and nonlethal options while conducting dispersed precision network operations. Exploiting the medium will be what it is all about. Today’s threat is fulsome, with both a horizontal and vertical extent not unlike an iceberg. We see two categories of threat: unstructured and structured. The unstructured threat manifests itself in random attacks by individuals/groups/regional organizations that degrade system operations—the tip of the iceberg. The structured threat is planned, methodical attacks by nation states and transnational organizations supported by intelligence that threaten system survival—the body of the iceberg. We are not yet performing well in combating the structured threat in the body of the iceberg, and thus our heightened attention to cyber security. Is the threat to cyber security or national security? Again, the words matter. In a world critically dependent on networks for information, energy, transportation, technology and systems

34 / Service Contractor / December 2011

for essential national security and business operations, it would seem national security is at risk. The narrow focus on cyber security has been ineffective and has ratcheted up the risk to exposed vulnerabilities and the potential damage toll to unacceptable levels. Gone are the days when we could consider the cyber threat as a technology challenge independent of the threat to national, and yes, global security. Welcome to the Cyber Age with its global challenges, revolutionary technologies and shared vulnerabilities. Security in the Cyber Age has its own unique challenges. How do we turn shared vulnerabilities into shared opportunities; how do we build competitive advantage in a world more narrowly focused on security; and, how do we build trusted solutions that can be shared by the public and private sectors? Security in the Cyber Age must include the global domain of critical infrastructure where we live, work and play. The public and private sector have an ever growing dependence on large-scale, highly distributed systems. Industry owns a significant portion of the cyber space critical infrastructure and it is all about the data not the network. The constantly evolving nature of the threat with ever increasing numbers and impact of cyber attacks suggests our adversaries see beyond cyber security into a comprehensive and agile attack across the public and private sector taking advantage of the seams between each. Tough, complex technical challenges must be met by the public-private sector partnership. It is time to engage them as a team with a shared vision: Security in the Cyber Age. Retired Air Force Lt. Gen. Kenneth A. Minihan is a former director of the National Security Agency and the Defense Intelligence Agency. He is currently a managing director in the Paladin Capital Group. Professional Services Council

Policy Spotlight continued from pg. 33 a precursor to other agency-specific or governmentwide acquisition regulations. Similarly, the Defense Department has been the leader in establishing an important government-industry partnership with 16 companies to fully exchange information about cyber attacks on both DoD’s and the companies’ information networks. This information exchange is not based on contractual responsibilities or assigning liabilities. Rather, the purpose is to collectively identify intrusion sources and methods and to assess the impact of any such intrusions on departmental programs and activities. The test program has worked well and DoD intends to expand the number of participating companies. PSC supports this “defense industrial base” program and is a proponent of significantly expanding this “no-fault” partnership to others. Finally, in an interesting initiative, in October the Securities and Exchange Commission (SEC) issued guidance—not regulations—regarding the information that publicly traded companies should disclose to investors and the public about network security breaches that occur and the status of the company’s information protection and potential vulnerabilities.

While being careful to stop short of suggesting that companies provide a “roadmap” to their network vulnerabilities, the SEC determined that more relevant and timely information about information protection should be made available. As a result of this SEC guidance, it is likely that companies will begin developing “standard” disclosure language that balances providing meaningful information to investors while protecting company proprietary and network security matters. PSC is evaluating the SEC guidance and may submit comments to the SEC on their guidance and its impact on publicly traded government contractors. Whether it is pending legislation or proposed regulations or information exchanges, the federal government’s approach to cybersecurity information protection and reporting is expanding – through multiple (and often disconnected) methods. While it is not likely that legislation will advance in the next several months, PSC recognizes that the multifaceted issues of cybersecurity protection and reporting can arise in multiple venues, addressing a myriad of simple or complex issues, and emerge at any time. We are prepared to act quickly. 3

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Service Contractor / December 2011 / 35

by Jeremy Madson PSC Federal Affairs Manager

Committee Corner

n response to growing member company interest, and in recognition of the Department of Veterans Affairs’ (VA) prominent position among federal agencies in acquiring professional and technical services, PSC launched its newest customer-focused task force 18 months ago: the Veterans Affairs Task Force (VATF). The VATF is the focal point for PSC’s advocacy at VA and provides a forum for member companies to address VA contracting issues and exchange best practices. Above all, the task force is a key resource for VA to seek the consensus voice of the department’s services industry partners. Under the guidance of co-chairs Ken Quaglio (Ernst & Young) and Julie Susman (Jefferson Consulting), the task force is undertaking a number of initiatives and meeting with key department leaders. Just days after its official establishment, the task force hosted Deputy Secretary of Veterans Affairs Scott Gould at a Dialogue Series breakfast with PSC members. Gould expressed enthusiasm for collaborating with the task force and pledged VA’s cooperation in developing a framework for meaningful ongoing dialogue between the department and the VATF. The task force took a significant step forward in cultivating this dialogue in the fall of 2010 when it hosted VA Assistant Secretary for Policy and Planning Dr. Raul Perea-Henze. The VATF provided feedback to Perea-Henze on the department’s strategic transformation plan and its major supporting strategies, objectives, and initiatives, and has continued to engage with the department as it refines and implements diverse elements of its strategic plan. Subsequently, the task force held a series of meetings with Greg Giddens, executive director of VA’s then newly created Enterprise Program Management Office (ePMO). As part of the process and systems improvement objectives in support of the department’s transformation initiative, the ePMO is developing a new VA acquisition framework. The new framework seeks to align VA processes around acquisition, program design, management, program execution and related skills and personnel requirements. Given the historical autonomy of the department’s major components,

36 / Service Contractor / December 2011

implementing such a coordinated approach represents a major challenge and a marked shift in how VA executes major objectives. The VATF developed a white paper for the ePMO recommending a number of actions the department could take to enhance its capabilities in these areas. In particular, the paper focused on the crucial role communication and collaboration regarding roles and requirements for all stakeholders plays in achieving program and acquisition outcomes, and the need for adequate planning and resources throughout the acquisition and program lifecycle. The task force continues to work with the department, most recently meeting with VA’s Office of Acquisitions to address major challenges in how the department partners with the private sector to achieve its mission. Heading into 2012, the VATF will expand its relationships with the department and its component agencies. Potential focus areas include VA’s use of information technology and innovative solutions to enhance its capabilities in delivering services to our nation’s veterans. For more information about the task force, or to be added to the VATF mailing list, please visit PSC’s website and click on “Committees & Task Forces” or contact Matt Busby at busby@ pscouncil.org. Professional Services Council

PSC: SCENE & HEARD 3

5 4 8

PSC President and CEO Stan Soloway greets PSC members at October’s New Member Breakfast held at the Tower Club in Tysons Corner, Va.

PSC members network at September’s Networking Happy Hour held at Rock Bottom Brewery in Arlington, Va.

Jerry Punderson and Brian Persons of the Naval Sea Systems Command meet with PSC members to discuss service contracting.

PSC Executive Vice President and Counsel Alan Chvotkin talks about business systems at an event PSC cohosted with member company Cherry, Bekeart and Holland. Professional Services Council

PSC Executive Vice President and Counsel Alan Chvotkin (right) talks about business systems at an event PSC co-hosted with member company Cherry, Bekeart and Holland. At the table, from right to left, are co-presenters David Lundsten, John Ford, Sam Davidson and Caroline Ternes.

PSC Executive Vice President and Counsel Alan Chvotkin, Dee Lee of Fluor, Rick Fields of Accenture, and Robin Schulze of Baker Tilly participated in a panel discussion on the new realities of government financial oversight and compliance during an event PSC co-sponsored with Baker Tilly.

PSC President and CEO Stan Soloway addresses the National Council for PublicPrivate Partnerships at the Nov. 10 “PPPs for the Federal Government: Real Estate and Energy Projects” meeting.

Al Corvigno leads a Service Contract Act training class PSC held on Nov. 2 and 3. The classes provided attendees with the tools they need to comply with government regulations.

PSC Vice President of Government Relations Roger Jordan testifies about the state of the acquisition workforce before a House Oversight and Government Reform subcommittee on Nov. 16. Service Contractor / December 2011 / 37

MEMBER NEWS Mergers & Acquisitions

On Nov. 7 Pacific Architects and Engineers Incorporated (PAE) completed the purchase of Defense Support Services, LLC (DS2), a leading provider of military aircraft and vehicle maintenance, logistics and base support services for the U.S. government. The purchase will allow PAE to expand geographically and enhance its agility and cost effectiveness, according to a company statement. DS2 was founded in 2004 as a joint venture between Lockheed Martin and Day & Zimmermann. PAE has provided missionessential services to the U.S. government for over 50 years. With the addition of DS2, PAE will employ 10,000 people across the nation and around the globe.

Anniversaries

Argy, Wiltse & Robinson, P.C., celebrated the firm’s 20th anniversary in September with a reception at the Newseum Knight Conference Center in Washington, D.C. and recalled its growth from a $500,000 firm in 1991 to a $50 million firm in 2010, making it the 55th largest independent public accounting and business advisory services firms in the nation, according to Inside Public Accounting. It has been named one of 25 “Best of the Best” firms in the nation for seven years in a row and the fastest growing “Best of the Best” firm in 2010.

New Hires & Promotions

Sabre Systems, Inc., a professional information technology and engineering services company, announced the following staffing changes. • Retired Navy Capt. Bob Roof was hired as senior executive director for Sabre Mid-Atlantic Region Group Operations, supporting the Maritime Patrol and Reconnaissance Aircraft Program at the Naval Air Systems Command. He will help lead Sabre’s regional operational and strategic initiatives across the company’s aviation and maritime sectors. • Thomas Dickson became the company’s new vice president of IT, responsible for leading the corporate IT team and managing the overall corporate technology infrastructure, including network and storage infrastructure, telecommunications infrastructure, and corporate systems. • Hampton Dowling will serve as senior executive director for the company’s Mid-Atlantic Region, responsible for managing Networks and Illicit Trafficking Programs, Secure Logistics and Operations with additional emphasis on integrated business and tactical solutions that address homeland security related challenges of partner nations, critical private sector initiatives, and various offices and agencies within the U.S. public sector. • Shawn Watt was promoted to executive technical director of the company’s mid-Atlantic region. In this new capacity, he will continue to manage Sabre’s support services for Atlantic Test Range (ATR) Operations, but will also manage Sabre’s support services for ATR Strategic Planning, the Executive Helicopter Program, Strike Ordnance JSEAS Program, and Aircraft Prototype Facility.

Honors & Achievements

the second time. Washingtonian’s 50 winning workplaces were chosen on the basis of such measures as: generous pay and benefits, challenging and interesting work, great work/ life balance, opportunities to learn and grow, financial stability, commitment to charity and community, and the recognition and respect given to employees. DELTA was also ranked 23 on another workplace satisfaction survey, Entrepreneur’s Great Place to Work® Rankings: 2011 Best Small & Medium Workplaces, which recognizes companies that have exceptional workplace cultures. Finally, DELTA was named the Star Workplace Medium winner in the second annual GovStar Awards, a program by SmartCEO magazine and Sheppard Mullin. The GovStar Awards recognize Greater Washington-area government contractors who lead the way by exceeding the extremely high expectations in this complex and competitive sector of business. Glevum Associates has been included on the Inc. Magazine 500 annual list of fastest growing U.S. companies, ranking No. 141. The ranking measures growth in revenue for the years 2007- 2010. According to Inc., the list represents the most comprehensive look at the most important segment of the economy—America’s independent entrepreneurs. NeoSystems Corp. was named to a related Inc. Magazine list of fastest growing private companies, appearing as 3,578 in the Inc. 5000, which is widely regarded as the most comprehensive look at America’s entrepreneurial sector, measuring revenue growth between 2007 and 2010 for these companies nationwide. In 2010, NeoSystems’ revenues grew to $15.8 million, a 46 percent increase from its 2007 revenues of $10.8 million. NeoSystems’ strong growth in revenues and employees has continued throughout 2011. Amyx achieved Capability Maturity Model Integration (CMMI) for Development v 1.3 Level 3 rating for its software development projects. This milestone, along with the ISO 9001-2008 certified processes already in place, allows Amyx to continue to improve customer satisfaction, deliverables and project performance. CMMI is a global process improvement model that provides guidance to how an organization develops and delivers products and services. Developed and supported by Carnegie Mellon University’s Software Engineering Institute (SEI), the CMMI framework and best practices are widely used by organizations around the world to improve software development related processes and services to meet the needs of customers and end users.

Relocations

NeoSystems Corp., which specializes in strategic back office services for government contractors, nonprofit organizations, and commercial entities, moved to new corporate headquarters in Tysons Corner on Oct. 29. Its new location at 1861 International Drive, Suite 200, consists of 29,947 square feet, including a 5,000 square foot state-of-the-art training center which will support up to four simultaneous training sessions for up to 94 students in each training room. continued on next page

DELTA Resources had a stand out month in October, obtaining three coveted business honors. It was named among Washingtonian Magazine’s Great Places to Work listing for

Have a story for Service Contractor’s Member News section? E-mail Bryan Bowman at bowman@pscouncil.org. 38 / Service Contractor / December 2011

Professional Services Council

2011 Government Contractor Awards The 9th Annual Greater Washington Government Contractor “GovCon” Awards showcased the industry’s success and continued relevance in solving the government’s biggest challenges. 1 2

5 4

1. PSC president and CEO Stan Soloway kicks off the 2011 GovCon Awards. 2. PSC Chairman Paul Cofoni, of CACI International, Inc. accepts the Executive of the Year Award for companies with revenue greater than $300 million. 3. Michele Foster, the deputy

director of the Tactical Operations Center for the Department of Veterans Affairs, accepts her Public Partner of the Year Award, which she shared with outgoing OFPP Administrator Daniel Gordon. 4. The GovCon winners and presenters pose for a celebratory group shot. 5. Mary Ann Beyster accepts the Hall of Fame award for her father, SAIC founder Dr. J. Robert Beyster from Deltek Executive Vice President Tom Mazich. 6. Former PSC Chairman Mac Curtis accepts the Contractor of the Year Award for Vangent. 7. PSC member company Vangent, which was recently purchased by GDIT, celebrates its Contractor of the Year Award for companies with revenue greater than $300 million. 8. Chris Torti of Jorge Scientific Group accepts the Executive of the Year Award for companies with revenue between $75-300 million. Photos 2-8 by Micheal Mullen/Deltek

With you when

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© 2010 Wells Fargo Capital Finance. All rights reserved. Wells Fargo Capital Finance is the trade name for certain asset-based lending, accounts receivable and purchase order finance services of Wells Fargo & Company and 40 / Service Contractor / March 2010 its subsidiaries, including Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A. (3-10 127735)

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