Fall 2020 Service Contractor Magazine

Page 1

Fall 2020

Ushering in a Historic

New Fiscal Year

ALSO INSIDE: 6

COVID-19 ACCELERATING IT MODERNIZATION

19

DOD’S CYBERSECURITY ASSESSMENT

24

ACQUISITION AGILITY AND AUDITABILITY

26

DEFENSE SERVICES CONFERENCE RECAP


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Fall 2020

19 DoD’S CYBERSECURITY ASSESSMENT

8

24

Lifting Our Game:

Supporting a Better Federal Government 4 President’s Letter

5 FedHealth Recap 6 COVID-19 Accelerating

IT Modernization 10 Policy Spotlight 13 Bill Tracker

18 Acquisition Policy Survey Preview 22 Vision Preview 27 PSC TechTalk Conversation with Congressman Will Hurd 28 Member News

ACQUISITION AGILITY AND AUDITABILITY

26 DEFENSE SERVICES CONFERENCE RECAP

Cover Montage: Allison Weinstock

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 For advertising or to submit articles or items for the Member News section, contact: Pheniece Jones jones@pscouncil.org

P S C S TA F F David J. Berteau President & CEO berteau@pscouncil.org Alan Chvotkin, Esq. Executive Vice President & Counsel chvotkin@pscouncil.org Cate Benedetti Vice President, Government Relations benedetti@pscouncil.org Joe Carden, CAE Vice President, Marketing & Membership carden@pscouncil.org

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Paul Foldi Vice President, International Development foldi@pscouncil.org Ryan McDermott Vice President, Defense & Intelligence mcdermott@pscouncil.org Melissa R. Phillips, CMP Director, Operations phillips@pscouncil.org Robert Piening, CPA, CGMA Vice President, Accounting & Finance piening@pscouncil.org

Bradley Saull Vice President, Civilian Agencies saull@pscouncil.org Matthew Busby Director, Membership busby@pscouncil.org Michelle Jobse Director, Vision Forecast jobse@pscouncil.org Cassie Katz Director, Marketing katz@pscouncil.org Andrea Ostrander Director, Events ostrander@pscouncil.org

Pheniece Jones Director, Media Relations jones@pscouncil.org Jean Tarascio Senior Manager, Events tarascio@pscouncil.org Donald Baumgart Manager, Vision Forecast baumgart@pscouncil.org Karen Holmes Office Manager holmes@pscouncil.org Christian Larsen Senior Associate, Public Policy larsen@pscouncil.org

Sebastian Herrick Senior Associate, Public Policy herrick@pscouncil.org Amanda Goff Associate, Research & Analysis goff@pscouncil.org Natalia Gray Associate, Events gray@pscouncil.org Alexandra Gomez Executive Assistant gomez@pscouncil.org Allison Weinstock Associate, Digital Marketing weinstock@pscouncil.org

Service Contractor / Fall 2020 / 3


PRESIDENT ’S LETTER

W

elcome to the Fall Edition of Service Contractor magazine! We are currently in a historic time where government, democracy, and the core principles of our country are on everyone’s mind. As I write this, the election is near, and regardless of how rapidly we know the results, PSC’s priorities remain the same: advocate for the contractors who keep the government operating and support the missions essential to this nation’s security. At the same time, we still face the ongoing wave of COVID-19, as the pandemic continues to affect workers, families, and operations. This Fall edition offers perspectives into how industry plans for and identifies solutions to our most pressing issues. Regardless of who is president, there are key priorities for an administration. This is the case during any presidential election. I explore more on this in the article I co-authored with Cisco’s Alan Balutis, on page 8, “Management Agenda for the Next Term.” As we highlighted in the Summer issue, contractors continue to identify new approaches to acquisition policy. This is a timely topic as PSC puts the finishing touches on the upcoming 2020 biennial Acquisition Policy Survey. The results facilitate discussion between contractors and government acquisition professionals and highlight trends and policies in government contracting. The insights not only make industry more aware of the customer concerns, they also support smarter contracting. More details are on page18. In this issue: • Mary Majoros, CGI Federal’s Legislative and Intelligence Sector Director, looks at how organizations can adopt approaches where acquisition agility drives compliance, and vice-versa, on page 24. • Alexander O. Canizares, Senior Counsel at Perkins Coie, LLP, shares timely highlights of ongoing developments with CMMC and DoD’s Cybersecurity Assessment on page 19. • Kyle Tuberson, ICF’s Chief Technology Officer, shares how COVID-19 is accelerating federal IT modernization, with contractors playing key roles, in his article on page 6. PSC continues to work with the federal government on issues ranging from COVID-19 bills to appropriations. Read more about some of these in Alan Chvotkin’s Policy Spotlight on page 10.

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Cate Benedetti’s regular PSC legislative bill tracker is more important than ever. It expands on the Policy Spotlight with its jam-packed overview of key Congressional actions on COVID-19 and much more, beginning on page 13. PSC was honored to host a virtual “TechTalk” roundtable with Congressman Will Hurd (R-TX) on technology issues facing the Congress. Congressman Hurd shared the importance of implementing IT legislation at the agency level in a time when IT modernization continues to evolve to meet the needs of the customer. Read more of his insights on page 27. Additional insights come from PSC conferences, which continue to offer virtually the same great information sharing opportunity as before. Our recent Defense Services Conference (page 26) and FedHealth Conference (page 5) enabled hundreds of participants to hear valuable keynote speakers from government and to network via the online platform. It’s so refreshing to spend time with government officials who remain focused on their missions and who recognize the value that service contractors contribute to achieving those missions. Our just-completed virtual Annual Conference ended too late to make this edition, but it’s still available on-demand to registrants Up next is our annual Vision Forecast Conference in November where industry will convene to share best-in-class market intelligence and new data. I hope to “see” all of you there. We will also hold our Annual Development Conference in December virtually, where industry and government will discuss the constant changes and challenges of the international development community. Finally, as we navigate this unprecedented time, let us remember why we do this. We work to support a nation built on the core values of liberty, equality, diversity, and justice for all. They matter, but they are not self-sustaining. We work together to continue to pursue them. Thank you for all you do to support them. As always, I welcome your input, your feedback, and your engagement in our efforts.

David J. Berteau, President and CEO

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PSC Virtual Meeting Brings Industry Together to Discuss Top Federal Health Issues

by Bradley Saull, PSC Vice President, Civilian Agencies

PSC

’s Annual FedHealth Conference took place on September 15, 2020, and gathered close to 300 health professionals from industry and government. The event kicked off with a keynote address by Dr. Richard A. Stone, the Executive in Charge at the Veterans Health Administration. Dr. Stone discussed the adaptability and creativity of both the VA and American veterans in continuing care during unprecedented current circumstances. The morning keynote address was followed by a conversation with leaders from the FDA and HHS on national health priorities including COVID-19, as well as a panel on technology disruptors in health that included officials from the FDA and VA discussing the adopting of emerging technologies to advance the agency mission. Ms. Kimberly Brandt of CMS provided a morning Ted Talk covering their efforts to adapt and respond to

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the COVID-19 pandemic, including expanded Medicare coverage for telehealth and other non-traditional services. Her comments were followed by a forward-looking panel on acquisition with officials from HHS, CMS, NITAAC, VA, and DHA. Panelists highlighted COVID-19 response needs, acquisition policy changes, contract spending data trends, improved forecasting as well as updates on Chief Information Officer-Solutions and Partners 4 (CIO-SP4). The closing keynote address was from Dr. Barclay Butler, Assistant Director of Management at DHA. Dr. Butler the evolution of DHA, current initiatives, and the road ahead. The event closed with a series of breakout sessions covering supply chain risk management, technology implementations, adjusting your business strategy, and other pressing issues for the federal health sector. For a full recap, visit www.pscouncil.org/fedhealth. 3

Service Contractor / Fall 2020 / 5


COVID-19 is Accelerating IT Modernization, and Contractors are Behind the Wheel by Kyle Tuberson, Chief Technology Officer (CTO) at ICF

T

he COVID-19 pandemic has revealed cracks in our public information technology systems. In short, their technologies are outdated and overwhelmed. This dynamic includes our public health information and surveillance systems, accelerating the push towards modernization across the public sector. Although many agencies began this transformation before the COVID 19 crisis, they have had to expedite their efforts to deliver services and set up new processes in a largely virtual environment with a limited workforce. However, with attempts to modernize over the past years, agencies have faced key obstacles, from lofty expenses to lengthy timelines.

Confronting Outdated Systems

Most can agree that the global public health system is in need of an upgrade. In addition to the overwhelming amount of human hours required to deliver care and medical attention, the pandemic has exposed a clear need for health-oriented digital solutions designed to improve care, measure progress and provide a central database for public health officials to reference — especially during crises. In order to select the right technologies and build sustainable digital infrastructure, agencies need guidance from experts that operate in that world already and understand the immense value of matching metrics with innovation that can save and improve lives when optimized. The majority of these issues stem from outdated legacy IT systems and lack of standardized operations, particularly data fragmentation. Systems that transmit and track core data, including healthcare facility tracking (i.e. number of beds) and test results, lack interoperability to effectively exchange and utilize this information. Even today, much of the data received in the public health system isn’t electronic, meaning that everyone from healthcare workers to contact tracers all have to enter it manually. A mix of analog and digital systems forces public health professionals in pursuit of data to undergo an incredibly tedious, lengthy process that introduces major human errors, including typos or entering into the wrong cell, leading to inaccurate data sets. We’re missing

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a standardized digital process, and it’s hampering how we process and transmit data, from case reporting to contact tracing efforts. In Washington State, for example, the state government even called on the National Guard to assist with contact tracing efforts in an attempt to extend its reach and efficiency. For the U.S. specifically, it’s crucial to actively build systems that can help contain and monitor outbreaks. It’s also important to build and maintain infrastructure needed to transmit key information across states and agencies, while also devising plans for how to protect against and mitigate similar shortcomings in the future. To achieve the kind of transformation required at scale, all agencies need to move from outdated legacy IT platforms to agile environments, and contractors can play a central role in shepherding this transition.

Cloud Adoption and Hyperautomation: The Core Technologies and Methodologies Leading Modernization

One overarching approach with the ability to empower modernization is hyperautomation. In fact, I believe hyperautomation will prove crucial for agencies and governments to adopt and for contractors to be intimately familiar with. Hyperautomation encompasses advanced technologies that run on business process data and context, such as artificial intelligence (AI), and employs them to increasingly automate processes that augment and support human efforts. Not only does this pertain to the range of systems that can be automated, but also overall improvement of automated processes, particularly analysis. Hyperautomation is, in many ways, a matchmaker. Most complex IT portfolios can be divided into systems that capture the day-to-day transactions (business process data) of the business (or online transactional systems, OLTP), as well as systems that perform analysis on these transactions (or online analytical processing, OLAP). Hyperautomation sits between OLTP and OLAP – using cloud technology, our customers are starting to build complex data environments that support the collection of just about every business process transaction Professional Services Council


that occurs inside these OLTP systems. In turn, we – the contractors – are creating improved AI models with better predictive capabilities. Apply this to a real-world scenario: in a call center, when a caller calls a hotline to report an issue with a business, a new AI model can automatically detect if the business has been reported on under a different name. Essentially, hyperautomation melds the layers of AI, automation, data and new technologies to enable these models. At ICF, we’ve seen first-hand that all federal agencies have been looking towards modernization over the past few years, but have hit obstacles. Not only is the technology outdated, but purchasing models are as well. For example, the cloud provides a new business model where agency customers purchase cloud services as a commodity and only pay for what they use. Prior to the cloud, agencies had to anticipate peak demand and build infrastructure that could support heavy usage periods. In turn, agencies would have to pay for this infrastructure, even when it’s not in use, to be effectively prepared for these spikes. Transitioning to a cloud-based consumption model, where systems scale to meet demand and then throttle down when demand drops, will yield major cost savings, especially as the amount of data agencies collect grows. Further, these cloud-based solutions provide advanced capabilities needed to modernize legacy systems. Advanced and planned future AI models require significant computing power and access to labeled data sets (business process, image, video, etc.) to properly function. Many of the capabilities needed to effectively sort and analyze this sheer amount of data are not possible using legacy technology. Overall, moving to the cloud opens a new world of opportunities to build better predictive

models, which, in turn, moves federal agencies from a reactive

state (i.e. an outbreak occurred last week) to a predictive state ANNUAL CONFERENCE (i.e, an outbreak is occurring right now). FP AD

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Potential Roadblock to Modernization

One of the core challenges standing in the way of modernization, and one that contractors should be acutely aware of, is organizational silos. Overall, organizations can sometimes neglect to effectively communicate, leading to duplicative efforts and a lack of interoperability and standardized practices. This is an issue across agencies that directly impacts modernization progress. The Center for Disease Control (CDC), for example, has over 110 surveillance systems. Many of these could be consolidated into a single platform, which would require significant coordination across multiple centers and programs. At ICF, we are working with several CDC surveillance systems to expand the infrastructure to support nationwide usage. Effective IT modernization requires a widespread and conscious culture shift – a challenge for large, siloed federal agencies. Advising clients to start its hyperautomation journey small with one system that needs immediate updating allows agencies to add value right away that then provides confidence in larger success. Essentially, modernization is ensuring systems for future needs, as well as a key response to the new problems arising today. Contractors can play a central role in shepherding this transition. In order to lead, they should communicate that investing in technology should be at the center of government modernization efforts, and actively help agencies take modernization more seriously. 3 Service Contractor / Fall 2020 / 7


Lifting Our Game: Supporting a Better Federal Government by Alan Balutis and David Berteau

Here are some of the ways to improve the delivery of customercentric services and create an agile government:

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• Leveraging data • Developing and maintaining a strong and blended workforce • Mitigating cybersecurity risks • Applying intelligent automation • Expanding partnerships • Streamlining acquisition Let’s discuss each one briefly.

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shutterstock.com / fizkes

P

oliticians run on a promise to “drain the swamp” of government, with President Trump’s 2016 campaign capping a long tradition that dates to the dawn of the republic. Remember Ronald Reagan’s “nine most terrifying words” (I’m from the government, and I’m here to help”) and Bill Clinton’s celebrating the end of “big government.” Whether it’s correlation or cause-and-effect, the result is not surprisingly a decline in citizen trust in our public institutions and sense that the government is inefficient and ineffective. The 35-day partial government shutdown of 2018-2019 underscored a sense that even if the government stops, few outside of Washington will notice. We who work to support the federal government know that’s not true. We know that the federal workforce, both civilians and uniformed personnel, is filled with dedicated people. We know that federal contractors, including PSC’s members, provide many essential elements of government performance, across all agencies and branches. But we also know the myriad opportunities for making the federal government better. In times of crisis like this, the focus needs to be on improving the quality and efficacy of all our government, not on the details of its size or scope. The U.S. needs to rebuild government capacity and capability, restoring citizen trust and faith in its ability to deliver needed results across all programs. The goal is a smart and agile government. We are at a critical point, a time where we need to lift our game, to improve how the federal government operates and meets public needs. Agency operation, service delivery, hiring and employee retention, information technology, and procurement – everything needs to become more resilient, adaptive, and responsive.


Better use of Data is both a catalyst for decision-making and an economic driver. Agencies need a data strategy for customercentric insights. Better data will enhance productivity and empower workforce transformation.

Partnerships between governments, the private sector, academia, and the non-profit sectors are creating new ways to share costs, deliver services, and enlist a broader group of stakeholders in the public sector.

The Federal Workforce is integral to improving government. Too many federal employees are eligible to retire, and too few are under 30 years old. Federal hiring is slow and disjointed. It is time to recognize that a successful workforce is a blended workforce, drawing on the strengths of private-sector contractors as complementary to federal personnel. At the same time, agencies must improve the federal workforce as well. Together, government and its contractors can steadily increase their ability to attract, develop, compensate, re-skill, and retain top talent.

Acquisition is the key to all of the above. The federal government can perform better and deliver results by becoming a smarter customer and a better buyer. Innovation in the commercial sector can be brought into government through contracts that focus on results, not input.

shutterstock.com / Billion Photos

Cybersecurity will continue to be a critical factor in the ability to deliver outcomes and build trust. Current efforts are insufficient to address the growing threats and challenges, and fragmented approaches leave some agencies (and contractors) less resilient than others. We are only as strong as the weakest links in both cyber and personnel security. Intelligent Automation is the convergence of two technological concepts that have been around for years: artificial intelligence (AI) and automation. Success stories are emerging across the government, but there is too little promotion of those successes to wider applications. Professional Services Council

We know that the federal government operates and delivers on thousands of programs and projects essential to society, security, and the economy. We know that citizens have too little understanding of or trust in the government’s ability to perform those programs well. America needs a government that delivers and earns that trust. By lifting our game, focusing on the key elements outlined above, we can start that process. Government service contractors are a vital part of that effort. Alan Balutis is a Managing Partner and Distinguished Fellow with Cisco Systems, Inc. He is one of several co-authors of Agenda 2021 --the Industry Advisory council’s (IAC) Presidential Election Project. David Berteau is President and CEO of PSC. Service Contractor / Fall 2020 / 9


Policy Spotlight

Policy Meets Transitions by Alan Chvotkin, PSC Executive Vice President and Counsel

T

his is a year of and for transitions. Most notably, the rapid rise of COVID-19 infections forced families, companies, and federal agencies to adjust rapidly to the mandates imposed by health officials and governmental organizations at all levels. The nature of federal work changed significantly, as did PSC’s policy focus. We recognized the short-term limits the pandemic imposed on contractors being able to work in traditional settings and we successfully pushed for flexibility to permit most federal contractor employees, even within the Intelligence Community, to work remotely. Little did we know how persistent the effects of COVID-19 would last. As it continued, PSC pursued legislation and government policies to keep contractor employees on the active payroll, ensure contractors are paid for work performed, and facilitate agencies continuing to fulfill their missions. Coupled with the unprecedented federal spending to respond to the pandemic, the federal government ended fiscal year 2020 will record levels of contract awards. Transitions also challenged the annual appropriations process, again creating uncertainty about whether, when, and at what spending levels Congress and the White House would reach agreement on for fiscal year 2021 that was to begin on October 1st. PSC highlighted the previously enacted two-year budget agreement in urging Congress and the White House to adopt full-year appropriations for all of the government at the pre-approved levels. Regrettably, despite the House of Representatives timely passing ten of the twelve regular appropriations bills, the Senate did not move any appropriations out of committee, thus necessitating enactment of a Continuing Resolution (“CR”) for all federal agencies to start the new fiscal year. The good news is that the enacted CR, which the president signed just over one hour into the new fiscal year, will at least run through December 11, 2020 at the same spending levels as fiscal year 2020. The CR also included PSC’s top near-term legislative priority – the extension of Section 3610 of the CARES Act, also through December 11. The bad news is that new appropriations for all federal agencies will be required to be enacted in the unpredictable post-election phase. And presidential elections trigger transitions. President Trump is running for reelection, but even his victory will

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create transitions by numerous senior government officials and launch further policy changes – regardless of the outcome of congressional elections. Should Trump not be reelected, not only will there be a wholesale turnover of Executive Branch officials and policy orientation, but we should expect a flood of policy actions by the outgoing administration leading up Inauguration Day. PSC is working on a set of transition white papers to address the need for policy and process changes that should be undertaken by the next Administration and the next Congress. Significant transitions will simultaneously be occurring in the Congress. Senior members of Congress have already announced that they were not seeking reelection or were defeated in their primaries. As of October 5, 32 House Republicans, 12 House Democrats, and five seats open because of other vacancies, will not be returning when the new Congress is sworn in on January 3, 2021. In the Senate, four Republicans and one Democrat are not seeking reelection. As a result, for example, the Republican leader of the House Armed Services Committee, the Democratic chair of the House Appropriations Committee, and numerous committee and subcommittee chairs and ranking members in both the House and Senate will change, even if control of the House or Senate does not change. Additional incumbents of both parties may fail to win reelection, and control of the Senate could change, which will increase the congressional transitions that are already underway and will continue long after the swearing in of the new Congress on January 3, 2021. Finally, I, too, will be transitioning. After 19 years leading the PSC policy portfolio, I am leaving the staff at the end of the calendar year and will be looking for new ways to be an advocate in the federal government contracting community. It has been personally and professionally rewarding to work on behalf of the PSC membership and the professional and technology industry for almost two decades. But PSC’s work representing its membership will be even more important in the transitions that will be occurring in calendar year 2021 and beyond. Recognize the transitions that are occurring. Plan for their impacts. And may all your transitions be smooth ones. 3

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Bill Tracker: 116th Congress-Second Session (2020)* NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

H.R. 266 Paycheck Protection Program and Health Care Enhancement Act, McCollum (D-MN)

SUMMARY Provided additional funding for small business loan programs, including the Paycheck Protection Program, as well as new funding and authorities for health care providers, and COVID-19 testing. STATUS Signed into law on 4/24/20; P.L. 116-139. Protecting Business Opportunities for Veterans Act, Bergman (R-MI)

H.R. 561

SUMMARY STATUS

Would apply certain small business subcontracting limitations to contracts that the Department of Veterans Affairs awards to a small business concern owned and controlled by a veteran or a veteran with a service-connected disability. Passed the House (voice vote) on 2/25/20. Related Bills: S.3282.

H.R. 748 Coronavirus Aid, Relief, and Economic Security (CARES) Act, Courtney (D-CT)

SUMMARY STATUS

Authorizes $2 trillion in funding and makes policy changes in response to the COVID-19 (i.e., coronavirus disease 2019) outbreak and its impact on the economy, public health, state and local governments, individuals, and businesses. Signed into law on 3/27/20; P.L. 116-136.

H.R. 1688 The Internet of Things Cybersecurity Improvement Act, Kelly (D-IL)

SUMMARY Would require the Director of the National Institute of Standards and Technology to develop recommendations for appropriate use and management of Internet of Things devices and require OMB to issue guidance that agencies and contractors must meet based on NIST’s recommendations. STATUS Passed the House (voice vote) on 9/14/20. Related bill: S.734.

H.R. 3413

DHS Acquisition Reform Act, Crenshaw (R-TX) SUMMARY Would provide certain acquisition authorities for the Under Secretary of Management at DHS, including designates the USM as the Department’s Chief Acquisition Officer responsible for approving, pausing, modifying, or canceling major acquisition programs. STATUS Passed the House (380-4) on 2/10/20.

H.R. 3763 Promoting United States International Leadership in 5G Act, McCaul (R-TX)

SUMMARY Would direct the President to establish an interagency working group to provide assistance and technical expertise to enhance U.S. leadership in international bodies that set standards for 5th and future generations of mobile telecommunications (5G) technology. STATUS Passed the House (voice vote) on 1/9/20.

H.R. 3941

FedRAMP Authorization Act, Connolly (D-VA) SUMMARY Would codify the Federal Risk and Authorization Management Program within GSA and make certain changes designed to enable the government to better leverage cloud computing services. STATUS Passed the House (voice vote) on 2/5/20. Text included in H.R. 6395, the Fiscal Year 2021 National Defense Authorization Act.

*The bill tracker as of October 2020 represents the activities from this current Congressional session in 2020. Please refer to the bill tracker in the Summer issue of Service Contractor for last year’s actions and other pending bills. Professional Services Council

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Bill Tracker: 116th Congress-Second Session (2020) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Department of Homeland Security Mentor-Protege Program Act, McEachin (D-VA) H.R. 4727 Would authorize a DHS mentor-protégé program for the purpose of assisting the protégé firm to compete SUMMARY

for prime contracts and subcontracts of the Department. STATUS Passed the House (voice vote) 12/9/19. Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 7/22/20. Congressional Budget Justification Transparency Act, Quigley (D-IL) H.R. 4894 Would require federal agencies to make budget justification materials available to the public. SUMMARY

STATUS

Passed the House (402-1) on 9/14/20. Related Bills: S.2560.

Secure and Trusted Communications Networks Act, Pallone (D-NJ) H.R. 4998 Would require the Federal Communications Commission (FCC) to publish a list of companies SUMMARY

STATUS

deemed by federal authorities as posing national security risks to telecom networks and prohibits federal funding to purchase, rent, lease, or otherwise obtain any covered communications equipment or services from companies on that list. Signed into law on 3/12/20; P.L. 116-124.

H.R. 5130 Capturing All Small Businesses Act, Veasey (D-TX)

SUMMARY Would double the lookback period for small businesses that use the employee-based size standard from 12 to 24 months for manufacturing companies. STATUS Passed the House (voice vote) on 1/8/20. Text included in H.R. 6395, the Fiscal Year 2021 National Defense Authorization Act.

Opportunities for Small Businesses Act, Hagedorn (R-MN) H.R. 5146 Unlocking Would require contracting officers to consider the past performance of a joint venture when SUMMARY

evaluating a participant’s offer for a federal prime contract. STATUS Passed the House (voice vote) on 1/8/20. Text included in H.R. 6395, the Fiscal Year 2021 National Defense Authorization Act.

Homeland Security Acquisition Professional Career Program Act, Titus (D-NV) H.R. 5822 Would require the Department of Homeland Security to establish a career program to develop a SUMMARY

cadre of acquisition professionals. STATUS Reported by the House Committee on Homeland Security on 8/14/20. Coronavirus Preparedness and Response Supplemental Appropriations Act, Lowey (D-NY) H.R. 6074 Provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus SUMMARY

outbreak. STATUS Signed into law on 3/6/20; P.L. 116-123. The Families First Coronavirus Response Act, Lowey (D-NY)

H.R. 6201

SUMMARY Provides paid sick leave, tax credits, and free COVID-19 testing; expands food assistance and unemployment benefits; and increased Medicaid funding in response to the COVID-19 outbreak.

STATUS

Signed into law on 3/18/20; P.L. 116-127.

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Bill Tracker: 116th Congress-Second Session (2020) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

National Defense Authorization Act for Fiscal Year 2021, Smith (D-WA) H.R. 6395 Would authorize appropriations and policy for fiscal year 2021 for the Department of Defense. SUMMARY

This bill includes funding levels requested for DoD and policy changes affecting contractors. STATUS Passed by the House (295-125) on 7/21/20. Related bill: S.4049 . Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act, Lowey (D-NY) SUMMARY Authorizes $3 trillion in funding and makes policy changes in response to the COVID-19 (i.e., coronavirus disease 2019) outbreak and its impact on the economy, public health, state and local governments, individuals, and businesses. STATUS Passed by the House (208-199) on 5/15/20.Â

H.R. 6800 H.R. 7010

Paycheck Protection Program Flexibility Act, Phillips (D-MN) SUMMARY Modifies the small business Paycheck Protection Program to provide more time for participants to use the loans and allows the loans to be used for additional expenses. STATUS Signed into law on 6/5/20; P.L. 116-142.

H.R. 7096

NEW National AI Research Resource Task Force Act, Eshoo (D-CA) SUMMARY Would establish a task force within NSF to develop a coordinated roadmap and implementation plan for establishing and sustaining a national artificial intelligence research resource. STATUS Referred to the House Committee on Science, Space and Technology on 6/4/20. Related bill: S.3890.

Federal Small Businesses Contractor Prompt Payment Reporting Act, Crow (D-CO) H.R. 7342 Would require federal agencies to report to Congress on the timeliness of accelerated payments to SUMMARY

small businesses prime and subcontractor. STATUS Referred to the House Committee on Small Business on 6/25/20. Text included in H.R. 6395, the Fiscal Year 2021 National Defense Authorization Act. Small Business Contracting Opportunities Act, Houlahan (D-PA) H.R. 7403 Protecting Would exempt certain contracts awarded to small business concerns from category management SUMMARY

requirements. STATUS Referred to the House Committee on Small Business. Text included in H.R. 6395, the Fiscal Year 2021 National Defense Authorization Act. Business Category Management Training Act, Joyce (R-PA) H.R. 7533 Small Would require the Small Business Administration to develop a training curriculum on category SUMMARY

STATUS

management for staff of Federal agencies that includes best practices for purchasing goods and services from small businesses. Referred to the House Committee on Small Business on 7/9/20. Text included in H.R. 6395, the Fiscal Year 2021 National Defense Authorization Act.

FY21 Consolidated Appropriations Act, Lowey (D-NY) H.R. 7608 Combines four Committee-passed appropriations bills for Fiscal Year 2021: State-Foreign Operations, SUMMARY

Agriculture, Interior, and Military Construction/ Veterans Affairs. STATUS Passed the House (224-189) on 7/24/20. 2nd FY21 Consolidated Appropriations Act, Visclosky (D-IN) H.R. 7617 Combines six Committee-passed appropriations bills for Fiscal Year 2021: Defense; Commerce, Justice, SUMMARY

Science; Energy and Water; Financial Services; Labor, Health and Human Services; and Transportation. STATUS Passed the House (217-297) on 7/31/20. Professional Services Council

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Bill Tracker: 116th Congress-Second Session (2020) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

Intelligence Authorization Act for Fiscal Year 2021, Schiff (D-CA) H.R. 7856 Authorizes appropriations for the intelligence community’s programs for Fiscal Year 2021 and includes SUMMARY

policy provisions that impact the Intelligence Community contractor workforce. STATUS Ordered to be reported by the House Permanent Select Committee on Intelligence on 7/31/20. Related Bill: S.3905. DIGIT Act, Welch (D-VT) H.R. 8115 Would take steps to help develop a national strategy to encourage the development of the Internet of NEW

SUMMARY

Things (IoT). STATUS Referred to the House Committee on Energy and Commerce on 8/25/20. Related Bill S.1611, H.R. 1668. American COMPETE Act, McMorris Rodgers (R-WA)Â H.R. 8132 Would require the Federal Trade Commission and the Secretary of Commerce to conduct nine studies SUMMARY

and submit reports on emerging technologies, including AI, quantum computing, blockchain and 3D printing, among others. STATUS Ordered to be reported by the Committee on Energy and Commerce on 9/9/20. The Continuing Appropriations Act, 2021 and Other Extensions Act, Lowey (D-NY) H.R. 8337 Provides for a continuing resolution for all federal government agencies to begin Fiscal Year 2021, SUMMARY

providing appropriations through December 11, 2020. STATUS Signed into law on 9/30/20 (P.L. 116-159).

S. 92

Regulations from the Executive In Need of Scrutiny (REINS) Act, Paul (R-KY) SUMMARY Provides that major executive branch rules shall have no force or effect unless a joint resolution of approval is enacted into law. STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs 7/22/20. Related bill: H.R.3972. Secure 5G and Beyond Act of 2020, Cornyn (R-TX) S. 893 Would require the President, in consultation with relevant federal agencies, to develop (1) a strategy SUMMARY

to secure and protect U.S. fifth and future generations (5G) systems and infrastructure, and (2) an implementation plan for the strategy. STATUS Signed into law on 3/23/20; P.L. 116-129.

DIGIT Act, Fischer (R-NE) S. 1611 Would take steps to help develop a national strategy to encourage the development of the Internet of SUMMARY

Things (IoT). STATUS Passed the Senate on 1/8/20. Text included in S. 4049, the Fiscal Year 2021 National Defense Authorization Act. Related bill: H.R. 8115, H.R. 1668.

S. 2336

Department of Veterans Affairs Information Technology Reform Act, Tester (D-MT) SUMMARY Would improve the management of information technology projects and investments of the Department of Veterans Affairs. STATUS Passed the Senate on 7/30/20.

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Professional Services Council


Bill Tracker: 116th Congress-Second Session (2020) NEW

Newly introduced since last issue

Major action taken since last issue

Bill became law since last issue

S. 2560

Congressional Budget Justification Transparency Act, Peters (D-MI) SUMMARY Would require federal agencies to make budget justification materials available to the public. STATUS Reported by the Committee on Homeland Security and Governmental Affairs on 3/2/20. Related bill: H.R. 4894.

S. 3038

Promoting Rigorous and Innovative Cost Efficiencies for Federal Procurement and Acquisitions Act, Peters (D-MI) SUMMARY Would direct DHS to publish an annual, publicly available report on projects that have used innovative procurement techniques to accomplish specified goals. STATUS Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 7/22/20.

S. 3282

Protecting Business Opportunities for Veterans Act, Cassidy (R-LA) SUMMARY Would apply certain small business subcontracting limitations to contracts that the Department of Veterans Affairs awards to a small business concern owned and controlled by a veteran or a veteran with a service-connected disability. STATUS Reported by the Committee on Veterans’ Affairs on 9/15/20. Related Bills: H.R.561.

S. 3712

The Cybersecurity Competitions to Yield Better Efforts to Research the Latest Exceptionally Advanced Problems (CYBER LEAP) Act, Wicker (R-MS) SUMMARY Would require the Department of Commerce to establish national cybersecurity grand challenges to achieve high-priority breakthroughs in cybersecurity. STATUS Ordered to be reported by the Senate Committee on Commerce, Science, and Transportation on 5/20/20.

National AI Research Resource Task Force Act, Portman (R-OH) S. 3890 Would establish a task force within NSF to develop a coordinated roadmap and implementation plan NEW

SUMMARY

for establishing and sustaining a national artificial intelligence research resource. STATUS Referred to the Committee on Commerce, Science, and Transportation on 6/4/20. Related bill: H.R. 7096.

S. 3905

Intelligence Authorization Act for Fiscal Year 2021, Rubio (R-FL) SUMMARY Authorizes appropriations for the intelligence community’s programs for Fiscal Year 2021 and includes policy provisions that impact the Intelligence Community contractor workforce. STATUS Reported by the Select Committee on Intelligence on 6/17/20. Text included in S.4049, the Fiscal Year 2021 National Defense Authorization Act. Related Bill: H.R. 7856. National Defense Authorization Act for Fiscal Year 2021, Inhofe (R-OK)

S. 4049

SUMMARY Would authorize appropriations and policy for fiscal year 2021 for the Department of Defense, including provisions that impact the acquisition process and the contractor community. STATUS Passed the Senate on 7/23/20. Related bill: H.R.6395.

S. 4200 SUMMARY

STATUS

Modernization Centers of Excellence Program Act, Portman (R-OH) Would requires the General Service Administration’s Technology Transformation Services to establish a Modernization Centers of Excellence Program to facilitate the adoption of modern technology by executive agencies. Ordered to be reported by the Committee on Homeland Security and Governmental Affairs on 7/22/20. Related bill: H.R.5901.

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2020 PSC Acquisition Policy Survey Preview by PSC Staff

Key Survey Takeaways

While the COVID-19 pandemic has challenged all public and private enterprises, government respondents unanimously lauded the adaptability of their staffs. Procurement offices across the government transitioned to telework with few interruptions in business-as-usual. When asked if COVID-19 affected procurements due to cancellations or delays, one respondent said: “Absolutely not, new solicitations are hitting the street as normal with no impact. Telework is here to stay and it will encourage a federal priority of reducing the federal footprint.” Interviews indicate that procurement officials are planning for a continuing resolution to fund Fiscal Year 2021. Respondents view continuing resolutions as the status quo. Aggressive fourthquarter action has become normal operating practice and agencies now have experience performing under fragmented funding with solutions in place to address these challenges. Additionally, respondents suggest that “1102s” are hard to hire, and there is a gap in transition between the existing and the new workforces. Seasoned acquisitions professionals grow professionally beyond government practice, while developing professionals are either too inexperienced or treat regulations with rigidity rather than flexibly. There is a definitive gap, respondents say, that must be addressed. “People are turning over more, so they need to adjust the learning curve and the advancement curve. Not having experience shouldn’t preclude one from getting the experience. Retirements are coming and new hiring is going to be slowing, so there is a challenge to keep a good balance of experience levels.”

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As one respondent mentioned, the Federal Acquisition Regulation (FAR) can be intimidating, saying that Government should encourage better practices to train incoming professionals. There is “a lot of flexibility that exists within the FAR, and people get stuck on what they know.” Good acquisition professionals, the respondent noted, understand how to apply flexibility in the FAR. Respondents identified data management as one of the biggest disruptors in government acquisition. While the government engages with the contracting community to enhance past performance (CPARS), encourage competition at the task-order level, improve the federal acquisition workforce, and develop security regulation models, it will use artificial intelligence to automate processes and data to enhance efficiency. A most valued function of the contracting community, according to respondents, is to innovate in the collection, use, and application of data to develop smarter acquisition practices. Communication between government and industry, according to our respondents, is out-of-focus for smart contracting practices. From both the PSC and respondents’ standpoint, debriefs are critical and sensible for businesses - especially small businesses to effectively partner with the government. How do we define success? How do we better communicate information, guidance, and assistance? Government respondents showed a vested interest in answering these questions. PSC looks forward to the release of the full survey results later this year. Thank you to both our members and the government officials who participated. 3

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shutterstock.com / Rawpixel.com

PSC

staff have nearly concluded the interviews that will inform the 2020 biennial Acquisition Policy Survey that is expected to be released shortly. The survey continues an 18-year PSC tradition of candid discussion between contractors and government acquisitions professionals around the most pressing upcoming trends and policies in government contracting. The survey provides value to both government and industry, facilitating smarter contracting, better communication, and more seamless business. In conversations with the more than 60 government officials surveyed, the following themes appeared most frequently: • Operational resilience through the COVID-19 emergency; • Difficulty in maintaining a consistent “1102” workforce; • Need for budget flexibilities when Continuing Resolutions are the status quo; • Data management strategies are critical considerations in upcoming acquisitions policies; and • Need for better industry-government communications.


DoD’s Cybersecurity Assessment Regime and Disputes: Key Considerations for Defense Contractors by Alexander O. Canizares, Senior Counsel, Perkins Coie, LLP

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he Department of Defense’s (DoD) Cybersecurity Maturity Model Certification (CMMC) program and newly issued cybersecurity rule present contractors with a range of compliance issues as they prepare for expanded third-party and DoD assessments of their information systems that will be a condition of eligibility for nearly all defense contracts. Among these issues is how to manage disputes and litigation related to DoD’s assessment and verification regime, as well as risks of False Claims Act (FCA) liability. DoD’s interim rule to implement CMMC released on September 30, 2020 confirms that the non-governmental CMMC Accreditation Body (CMMC-AB) will adjudicate assessment-related disputes, but details are pending. Key questions remain about how disagreements related to DoD’s cybersecurity assessment regime will be resolved, what remedies will exist, and what procedures will be available at different stages. There is also uncertainty about the roles of courts and the Government Accountability Office (GAO) given CMMC’s reliance on nongovernmental entities and third-party verification. This article focuses on three areas companies should consider as they prepare for DoD’s program, which it plans to gradually implement over the next five years: • Disputes related to third-party assessments and certifications; • The impact of CMMC on source selection decisions and bid protests; and • Emerging risks of qui tam FCA suits related to cybersecurity non-compliance.

DoD’s Emerging Assessment Regime

Intended to protect the defense supply chain, CMMC provides a unified framework for safeguarding Controlled Unclassified Information in the Defense Industrial Base. Version 1.02 of CMMC consists of 171 practices and five processes organized into 17 domains and mapped across five levels of “maturity” ranging from Basic Cyber Hygiene (Level 1) to Advanced/Progressive (Level 5).

In its interim rule, DoD adopts regulatory changes to the Defense Federal Acquisition Regulation Supplement (DFARS) intended to roll out CMMC incrementally until October 2025, at which point CMMC will be required for all non-commercial off-the-shelf defense solicitations and contracts above the micropurchase threshold. The interim rule takes effect November 30, 2020 subject to becoming final later after receipt of comments. Accredited assessors employed by non-governmental ThirdParty Assessment Organizations (C3PAOs) selected by the CMMC-AB will be responsible for assessing some 200,000 contractors’ compliance and issuing certifications of compliance with one of the five CMMC levels. Companies subject to CMMC will need to be certified by the time of DoD’s award. The interim rule also adopts a separate track of assessments for companies whose contracts include the standard cybersecurity clause in DFARS 252.704-7012. That clause requires contractors that store, possess, or transmit so-called Covered Defense Information (CDI) to provide “adequate security” on their systems by, at a minimum, adopting the controls issued by the National Institute of Standards and Technology (SP 800-171), and to report cyber incidents post-award should they occur. Under the interim rule, companies subject to NIST SP 800-171 continued page 20

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from page 19

and DFARS 252.204-7012 will have to undergo assessments using a “NIST SP 800-171 DoD Assessment Methodology.” At a minimum, such companies will need to perform a Basic Assessment, which is a self-assessment performed by the contractor indicating the extent of its compliance with NIST SP 800-171. DoD also has discretion to perform Medium or High Assessments, which the Department expects to be conducted on a “finite” number of contractors annually.

Potential Dispute Areas

Several factors highlight the importance for companies to adopt strategies and processes to manage disputes and mitigate litigation risks related to CMMC and NIST SP 800-171 assessments. • The cybersecurity legal regime is changeable, as is the nature of the threat. DoD components may supplement CMMC and NIST SP 800-171 with their own cybersecurity requirements. This state of flux makes disagreements more likely. • The program presents high stakes for industry. Because CMMC and Basic Assessments of NIST SP 800-171 compliance will be a “Go/No Go” criterion in source selection, contractors will be motivated to protect their interests. • CMMC imposes new obligations on primes and their suppliers. As primes perform diligence on their vendors related to CMMC, disputes can arise both between primes and subs and potentially with C3PAOs and the CMMC-AB. • Cybersecurity requirements provide fruitful territory for qui tam litigation under the FCA, heightening the risks of violations. These issues bear upon CMMC’s implementation. In the report on its version of the FY 2021 National Defense Authorization Act (S. Rep. 116-236), the Senate Armed Services Committee directs DoD to brief the committee annually on CMMC, including on the status “of mechanisms within the [DoD’s] CMMC framework for fraud prevention, bid protest, and dispute resolution[.]”

that challenge an agency’s procurement-related decisions. The extent to which actions and decisions made by C3PAOs and the CMMC-AB may be challenged is thus uncertain. Litigation in federal district court is conceivable. Having DoD engage in the resolution of CMMC certification disputes in at least some circumstances could provide for better predictability and accountability but would bring about its own set of issues. It is also reasonable to expect that DoD-performed assessments of contractors’ implementation of NIST SP 800-171’s controls will result in disputes. Under DoD’s interim rule, contractors will have an opportunity for “rebuttal and adjudication” of their assessment scores. Again, many questions remain. For now, it appears that dissatisfied contractors will have a strong incentive to explore all available legal options.

Source Selection and Bid Protests

CMMC may also give rise to bid protests related to agency source selections. It is unclear what criteria agencies will use to determine CMMC levels for primes and lower tiers. A lack of uniform practice across DoD could generate allegations of arbitrary and capricious decision-making, especially to the extent that agencies err on the side of requiring higher CMMC levels. A protest of an agency’s choice of CMMC level would have to overcome case law giving agencies deference when defining their requirements. In its recent protest of DoD’s JEDI procurement for cloud services, Oracle argued that certain “gate” solicitation requirements—including that offerors be “FedRAMP Moderate” authorized—were unduly restrictive of full and open competition and impermissible “qualification” requirements. But on September 2, 2020, the U.S. Court of Appeals for the Federal Circuit rejected those arguments, explaining that it was “hesitant” to “override the agency’s judgment as to its needs” for security. Oracle Am., Inc. v. United States, Fed. Cir. 19-2326. Allegations of Organizational Conflicts of Interest (OCIs) may also arise. For example, firms that offer consulting services regarding CMMC that also bid on contracts may acquire access to non-public, proprietary information about other companies. Disappointed offerors may seize on these new types of relationships to challenge awards. continued page 22

Assessment and Certification Disputes

DoD’s interim rule indicates that the CMMC-AB will be responsible for resolving assessment-related disputes, but there are few details. Contractors will be able to bring assessmentrelated challenges before the CMMC-AB “related to claimed errors, malfeasance, or ethical lapses” by a C3PAO, and then seek further review before the CMMC-AB if the contractor “does not accept” the CMMC-AB’s preliminary finding. The CMMC-AB’s website defines “dispute” to mean a “formal process managed by the CMMC-AB” through which an assessor and an organization seeking certification “can seek resolution of a disagreement” over assessment results. A “Dispute Adjudicator” is a CMMC-AB employee “who is responsible for reviewing and resolving a Dispute.” But many questions remain, such as what procedures will be used, what standards will apply, and how long appeals will take. CMMC’s reliance on non-governmental entities raises legal issues. The Contract Disputes Act and the Disputes clause, FAR 52.233-1, apply to claims against the government. The U.S. Court of Federal Claims and the Armed Services Board of Contract Appeals lack jurisdiction over disputes between private parties, and the Court and GAO can only review bid protests

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Professional Services Council


8th Annual

Development

Conference Presented by

100% VIRTUAL

Dec. 8, 2020 • 8 a.m. - 12 p.m.

Constant changes and challenges are confronting the international development community, particularly with COVID-19 staffing and funding issues, prohibitions on the use of proscribed Chinese telecommunications, and a pending presidential election. Now more than ever, it is vital to hear directly from senior government leaders from USAID at this year’s [virtual] annual Development Conference.

Registration is now open! www.developmentconference.org Professional Services Council

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VISION Preview

by Michelle Jobse, Director, Vision Market Forecast, PSC

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n its 56th year, the 2020 PSC Vision Federal Market Forecast and Conference addresses the defense, civilian, and federal information technology markets. Each year, volunteers of PSC —through market research and an extensive interview process—gather, collate, and analyze information for the annual Vision Federal Market Forecast. This includes both qualitative and quantitative analysis from 325+ industry member volunteers who participate in the forecasting process. Volunteers compile and share insights provided by hundreds of government executives, think tank experts, Congressional staff and Wall Street analysts who take part in non-attribution interviews. The purpose of the Vision Federal Market Forecast and Conference is multi-faceted and includes: • Providing a forum for the Federal marketplace to obtain a concise, quantifiable assessment of the budgets, programs, priorities, and issues in a rapidly changing environment;

• Providing government customers the opportunity to express their current and future needs; • Enabling industry to understand and contribute to technology innovations, requirements development, upcoming opportunities, improved business practices and better customer relationships; • Encouraging greater government/industry communication and interchange on issues, technology, programs and other areas of mutual interest. Attendees will hear from 22 teams of industry volunteers, including plenary sessions on global macroeconomic trends, international security, government customer experience, and more. This year’s virtual conference will take place on November 9th and 10th and will highlight the impact of the COVID-19 pandemic, budget uncertainty in an election year, and more. Visit pscouncil.org/vision to learn more and register. 3

CMMC from page 20

False Claims Act

Another risk area is the FCA, which provides for treble damages and penalties when a person knowingly submits, or causes to be submitted, a false or fraudulent claim to the United States. Under the case law recognizing an implied false certification theory, liability arises when a company not only requests payment from the government but also makes specific representations about its goods or services while failing to disclose non-compliance with material statutory, regulatory, or contractual requirements. CMMC’s third-party verification could reduce FCA exposure based on cybersecurity violations. But compliance is an ongoing responsibility. Obtaining CMMC certification will not protect a company from a qui tam lawsuit if it recklessly disregards its cybersecurity obligations or falsely validates its or a subcontractor’s compliance. Apart from CMMC, DoD’s new requirement that contractors report to DoD their self-assessed scores reflecting the extent of their implementation of NIST SP 800-171’s controls will also present FCA risks. Inaccurate or unsubstantiated scores could result in alleged FCA violations. Key questions in future cases include how courts will address the issue of falsity involving cybersecurity controls, as well as the requirement that the alleged non-compliance must be material to the government’s payment decision.

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In May 2019, the district court in Markus v. Aerojet Rocketdyne Holdings, Inc., No. 2:15-cv-2245 (E.D. Cal. 2019) declined to dismiss allegations that a contractor fraudulently entered into contracts with DoD and NASA despite knowing non-compliance with cybersecurity controls. The court held that the whistleblower sufficiently pled “materiality” because the alleged violations “could have affected” the company’s ability to handle technical information related to its contract. Will courts handling future qui tam cases based on cybersecurity treat all CMMC controls as equally material? Or will they take a narrower approach?

Final Thoughts

An effective approach to managing disputes and FCA risks is an important aspect of CMMC’s implementation. Companies can benefit from considering these issues at an early stage of the program. Companies may wish to include language in their teaming agreements with partners related to CMMC and NIST SP 800-171 assessments and, to the extent possible, seek to negotiate clear disputes settlement clauses in contracts with assessors and vendors. Documenting ongoing compliance with cybersecurity requirements and ensuring mechanisms exist to respond to allegations of non-compliance can help mitigate FCA risks. 3

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Can your government contracts stand up to the scrutiny of a DOL investigation? Industry experts estimate that at least 50% of Contractors are currently out of compliance. Did you know that Contractors are also subject to fines and penalties if their subcontractors are out of compliance with the DOL requirements? Not knowing your duties is not a defense against compliance deficiencies! With penalties and sanctions becoming more frequent and often substantial, now is the time to put a strategic partner to work for you and your bottom line. GSA National understands the bid implications of SCA compliance and can help you navigate the ever changing and complex compliance landscape. Let our team of compliance experts be the asset that increases your ability to submit winning proposals.

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Acquisition Agility and Auditability: Partners, not Competitors by Mary Majoros, Legislative and Intelligence Sector Director, CGI Federal

A

cquisition within federal agencies has undergone many reform efforts over the years, all designed to make the process move quickly in anticipation of near-future needs and rapidly respond to unfolding events. While this topic is not new, conversations over the past year with senior federal procurement officials have shone a spotlight on a common thorn hindering their ability to increase acquisition agility—the requirement to achieve unmodified, clean, financial statement audit opinions. There seems to be an inherent tension within agencies between achieving acquisition agility or audit compliance. This line of thought seems to cast the challenge as an inevitable, zerosum trade-off between the two functions and the question of which is more important to mission support. When faced with such a bilateral conundrum, it is sometimes helpful to replace or with and to determine if both problems can be resolved simultaneously. By looking at both factors together and conjoining the concepts—that increasing acquisitions agility will lead to more effective system operations, reporting and compliance—agency perspectives are opened to broader options for problem solving. The following three approaches can help organizations see the concepts as two sides of the same coin, where acquisition agility drives compliance, and vice-versa.

Some procurement executives note that agency acquisitions must stay on a cycle of continuous improvement to remain both compliant with applicable regulations and responsive to rapidly changing mission needs. The words and concepts used to describe these acquisition workflows and methodologies are similar to those applied to agile software development. For context, agile software development refers to a group of software development methodologies based on iterative development, where requirements and solutions evolve through collaboration between self-organizing cross-functional teams.

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Agile methods generally promote a disciplined project management process that encourages frequent inspection and adaptation. It requires a leadership philosophy that encourages teamwork, self-organization and accountability. Agile also brings a set of engineering best practices intended to allow for rapid delivery of high-quality software, and a business approach that aligns development with customer needs and organizational goals. Professional Services Council

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Shift in thinking


Applying this mindset in practice in federal acquisitions creates greater agility, providing program managers much more responsive acquisition delivery support.

Embrace technology

Technology plays a key role too. An integrated acquisition and financial platform removes one of the most common obstacles to achieving an unmodified audit: an unreliable information exchange between the financial ledger of the organization and the acquisitions software of the procurement shop. Legacy contract writing systems often lack financial system integration, workflow capabilities, and data validation; instead, these systems rely on human validation or double entry. As a result, contract awards may contain discrepancies with an agency’s available funds and propagate other errors that eventually show up in an agencies’ audit report as significant deficiencies or material weaknesses. A modern, integrated acquisition and financial platform establishes a permanent information data flow across both platforms and removes human error, improving contract management financial data integrity. Every acquisition action that has financial impact is automatically recorded, properly updated in the general ledger, and verified against the budget. Implementing a modern, integrated platform also allows agencies to operationalize the concepts of continuous improvement while rapidly adapting workflows and processes for changing methodologies and organizational structure, all without custom code. Leveraging commercial-off-the-shelf products allows federal acquisition shops to keep pace with software releases that incorporate procurement process improvements, security enhancements, and federal regulatory changes. Such systems also allow on-the-fly configuration to easily accommodate changes in methodologies, organizational structure, and new agile initiatives.

Apply strategic change management

The overarching challenge for an agency is the enterprise change management that is inevitable when introducing innovation and unfamiliar systems. As with any major organizational change, there are things leaders can do behind the scenes to drive a successful transition. Key to any change is organizational leadership and changing an organization’s mindset. The following management concepts have been employed to assist numerous procurement workforces prepare for such a dramatic shift: • Drive culture change: As workplace strategies, structures, and systems are adjusted, the organizational culture responds. Achieving successful auditability and acquisition agility is easier when leaders are committed to embrace new information and different approaches, to provide frequent communication across all levels, and

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to maintain coordinated approach to human capital. Involving personnel on the front line also improves buy-in and successful adoption of functional changes downstream. • Foster collaboration: A leader’s success depends on an ability to influence people inside and outside their direct line of control. The relationship between the contracting staff and the procuring line of business is a critical one and acquisition agility is more likely when there is a strong sense of team and shared risk and understanding between the two organizations. • Imagine the possible: Leaders should think of acquisition agility as a clean slate, open to new information and unconventional approaches such as giving first-line acquisition and contracting officers a voice and incorporating a mission-centered vision that acts as the heartbeat of the change effort. Doing so allows leaders to be more involved in mission planning and outcomes, increasing their proficiency on the acquisition tools and vehicles involved, and participating in the development of—and transition to—streamlined acquisition processes. • Be open to innovation: Innovation comes in many shapes and sizes. Innovation can mean applying best practices from other acquisition shops across the Federal government. It also can take the form of embracing emerging technologies such as blockchain and robotic process automation—in conjunction with modern systems—to help streamline processes and keep up with change and continuous compliance. Furthermore, automation of tedious tasks can allow employees to perform next-level functions that can help deliver greater agility to agency mission. • Invest in a training program: Enterprise-level training programs are a key component of organizational change to help ensure the workforce is guided through the change journey. In addition to tooling the workforce on higher risk and more agile contracting, training promotes employee engagement, helps maintain visibility, and encourages a feeling of belonging. Building a roadmap of continuous training keeps the content fresh and outcomes relevant for a workforce that experiences high turnover, a fast-paced mission environment, and frequent regulatory changes.

Conclusion

Making acquisition more agile while maintaining audit compliance is an ever-present challenge. However, with emerging insights into leadership and management, and with modernized systems that keep data flowing with little or no human interaction required, there has never been a better time, with a greater chance of success, than now. 3

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Defense Services Conference 2020 Recap: Industry Collaboration Continues to Drive Transformation

by Ryan McDermott, VP, Defense and Intelligence, PSC

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n Thursday, August 13, 2020, over 175 attendees participated virtually in PSC’s Defense Services Conference 2020, exploring ways in which the federal government is meeting the demands of modernization and sustainment challenges and initiatives as it manages the ongoing COVID-19 crisis. The conference theme, “Beyond the Crisis: Adapting to Change and Accelerating Transformation,” brought senior executives across the Department of Defense and the federal contracting community to discuss how they are adapting to change and accelerating transformation in defense services. Following opening remarks from PSC President and CEO David Berteau and Defense Services Conference Chair Jim Jaska, the virtual conference opened with a keynote address from the Honorable Ellen Lord, Under Secretary of Defense for Acquisition and Sustainment (A&S). Under Secretary Lord gave an overview and update on several initiatives in A&S, such as the Adaptative Acquisition Framework (AAF), Section 889, CARES Act Section 3610, Cybersecurity Maturity Model Certification (CMMC), and small business growth. On Section 889 implementation, she remarked that while the Department of Defense is fully supportive of the intent behind Section 899, it recognizes the implementation challenges facing industry. Additionally, she described DoD’s efforts regarding CARES Act Section 3610, noting that within the Senate-draft HEALS Act, $10.8 billion has been apportioned to the Services for Section 3610 costs. Following Ms. Lord’s keynote address, Maria Proestou moderated the first panel focused on modernization entitled, “Accelerating DoD Modernization Through Digital Transformation.” The panel included Kristen Baldwin, Deputy Assistant Secretary of the Air Force for Science, Technology and Engineering; William Bray, Deputy Assistant Secretary of the Navy for Research, Development, Test and Evaluation; and Jeffrey White, Principal Deputy Assistant Secretary of the Army for Acquisition, Logistics, and Technology. The panel identified artificial intelligence, machine learning, cloud computing and data analytics, and spectrum as key tools the Services will be looking to industry to harness their operational needs. Regarding workforce improvements, while the panel highlighted the need to continuously train and retrain its current workforce, they all concluded that bringing the acquisition system into the digital age means focusing on digital talent recruitment and management. Neil Albert moderated the second panel entitled, “Revitalizing Sustainment to Meet DoD Requirements in a Post-COVID World.” This panel included Kristin French, Chief of Staff, Defense Logistics Agency; Andrew Hunter, Director of the Defense-Industrial Initiatives Group, CSIS; 26 / Service Contractor / Fall 2020

and William Williford III, Executive Director, Marine Corps Systems Command. The panel discussed how each of the Services is handling COVID-19’s impact on sustainment with successful government-industry partnerships and the challenges within the current acquisition system that are impacting the sustainment that industry can provide to the Services. Rear Admiral John Polowczyk, Vice Director, J4, Joint Staff, gave the final keynote address of the conference, detailing his current role as Supply Chain Task Force Lead, Department of Health and Human Services, Office of the Assistant Secretary for Preparedness and Response. In a Q&A session with PSC President and CEO David Berteau, Rear Admiral Polowczyk emphasized that COVID-19 has highlighted the need for logistics and that the lack of access to it requires deep examination, especially as the U.S. competes in great-power competition with China, where logistical support and coordination in domestic and global supply chains will be key to success. Wrapping up the Conference, PSC President and CEO David Berteau and PSC Vice President for Defense and Intelligence Ryan McDermott offered brief remarks and closed out the conference. Thanks to PSC members and participants for helping to successfully deliver this virtual event. 3 Professional Services Council


PSC TechTalk Conversation with Congressman Will Hurd: Using Congressional Oversight and Industry to Drive Federal IT Modernization by Christian Larsen, Senior Associate, Public Policy, PSC

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n July 24, 2020, PSC convened a virtual TechTalk roundtable with Congressman Will Hurd (R-TX) on technology issues facing the Congress. As a leading proponent of a government-wide national strategy governing AI, and the lead sponsor for the enacted Modernization Government Technology (MGT) Act, Rep. Hurd spoke of the importance of implementing IT legislation at the agency level to outfit the federal government with ethical, costefficient IT solutions; the essential oversight role of Congress in that endeavor; and why federal agencies must adapt their acquisition cultures to incentivize more collaboration and partnerships with the commercial sector. Rep. Hurd touted the success of the Federal Information Technology Acquisition Reform Act (FITARA) in improving efficiencies within the federal government, commenting that agencies now have the tools, congressional mandate, and the necessary funding mechanisms to modernize the federal IT landscape, regardless of leadership or administration changes. He specifically cited the FITARA scorecard in which GAO scores federal agencies’ overall IT performance in a variety of technology categories, essentially asking agencies to defend their positions or improve upon their scores. Since FITARA’s passage, its implementation has produced consistent results of how agencies procure and use technology. In the November 2015 scorecard, only 7 of the 24 agencies reviewed scored a “C” or higher, while all 24 reviewed agencies in the July 2020 scorecard received a “C” or higher.1 Continued successful implementation of FITARA will depend on federal agencies informing Congress on where improvements can be made; Congress can then incentivize more changes. Rep. Hurd emphasized the essentiality of congressional oversight when federal agencies adopt new technologies, with an emphasis on moving away from an “oversight of failure” strained by party politics to an “oversight of execution” such as how projects are being implemented with new technologies to support an agency’s mission objectives. Rep. Hurd asserted that industry has a role to play in providing feedback at the committee level on what is working and to identify emerging technologies that the federal government has yet to notice. For example, Rep. Hurd pointed to the assessment and auditing role of GAO in providing technology overviews to Congress regarding developments in science and

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new technologies. While Congress is on the receiving end of those assessments, industry has a vital role in driving the conversation. Rep. Hurd believes congressional oversight should be used to examine if technologies are being used appropriately to enhance the customer service experience, such as whether AI-based algorithms are being used by federal agencies to negatively impact affected communities. While federal agencies’ understanding of emerging technologies might be limited, Rep. Hurd believes it is the role of Congress to drive those conversations, effectively directing federal agencies on the right path. Beyond this, industry must also engage with Congress and the agencies on how industry is using emerging technologies and how the federal government can benefit. For example, Collective Liberty, an organization dedicated to ending human trafficking, uses data analytics tools to identify unnoticed patterns and anomalies in curated data and court documents that represent examples of human trafficking that would otherwise be overlooked by law enforcement.2 The federal government must adapt its acquisition culture to incentivize more collaboration with the commercial sector, including implementing commercial best practices that are cost-efficient. Rep. Hurd spoke of the indispensable role that the commercial sector plays in providing new technologies to the federal government in support of mission critical work. Exhorting a “buy-not-build” philosophy over a “buildnot-buy” mentality, Rep. Hurd emphasized the need for the federal acquisition community to embrace sourcing more broad-based solutions to achieve best value procurement over the current requirements-based approach that limits what the private sector can deliver. As the private sector has replaced the federal government as the largest contributor to R&D funding, the federal government needs to either attract or recruit the best talent from the commercial sector or lean on the private sector for such capabilities. Emphasizing the need for sustained oversight in the adoption of new technologies through legislative vehicles, Rep. Hurd believes this requires a constant feedback loop between Congress, federal agencies, and industry in order for emerging technologies to be effectively implemented. 3

COR Biannual Scorecard - July 2020 Collective Liberty Homepage

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MEMBER NEWS Ioana Singureanu BookZurman as Chief Innovation Officer

Ioana Singureanu has joined BookZurman as Chief Innovation Officer after working closely with the organization as a trusted advisor and subject-matter expert for more than a decade. As Chief Innovation Officer, Singureanu will apply more than 25 years of deep healthcare information technology standards expertise and thought leadership to solving complex business problems for public and private sector clients: empowering providers to embrace industry standards for patient safety. With a consistent connection to the full lifecycle of interoperability and standards, Singureanu will apply insights from engagement with the evolving standards community to client concerns and goals.

URC Welcomes Dennis Carroll, Former USAID Pandemic Expert, as Senior Advisor for Global Health Security [pic]

Global pandemic expert Dennis Carroll has been appointed URC’s Senior Advisor for Global Health Security and URC Global Advisory Board member. Carroll will help URC implement projects following evidencedbased best practices during this pandemic and with all infectious disease work. For nearly 15 years, Carroll directed USAID’s Pandemic Influenza and other Emerging Threats Unit. As Director of the unit, he led USAID’s Emerging Pandemic Threats program, a global effort to combat new disease threats before they can become significant threats to human health.

Sheri Murphy Joins VP Ranks at American Systems

American Systems has promoted Sheri Murphy, former director of information technology governance, risk and compliance, to vice president of quality assurance and continuous improvement. The 24-year company veteran will advise the leadership team on matters related to program and risk management, quality assurance and corporate business standards in the newly created position. Murphy will also be responsible for developing and implementing an integrated management system to address International Organization for Standardization requirements for quality, service management and information security. Murphy’s career at American Systems includes work related to IT, policy compliance and change management. She most recently served as director for IT governance, risk, and compliance.

Have a story for Service Contractor’s Member News section? E-mail jones@pscouncil.org

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2020 Greater Washington Government Contractor Awards™ Finalists Northern Virginia Chamber and PSC Announce 2020 Greater Washington Government Contractor Awards™ Finalists The Northern Virginia Chamber of Commerce and PSC announced the finalists for the 18th Annual Greater Washington Government Contractor Awards™, the premier awards event for the Washington area government contracting community. The winners will be recognized during the annual awards gala held virtually on November 4. The purpose of the GovCon Awards is to honor the exceptional work of the leaders and businesses in the region’s government contracting sector. The award categories include: Contractor of the Year in four revenue categories and Executive of the Year in three revenue categories. The 2020 Washington Government Contractor Awards Finalists are: CONTRACTOR OF THE YEAR Up To $25 Million Aptive Resources C2S Consulting Group Dynamis Electrosoft Services, Inc. Kreative Technologies Ripple Effect $25 – 75 Million Acclaim Technical Services Fors Marsh Group Na Ali’I Consulting & Sales, LLC NetImpact Strategies, Inc. Prescient Edge Robotic Research $75 – 300 Million DLH Corporation Dovel Technologies Metis Solutions Sevatec Systems Planning and Analysis, Inc VTG Over $300 Million Centauri Guidehouse Leidos Perspecta Smartronix, Inc. T-Rex Solutions, LLC Valiant Integrated Services

EXECUTIVE OF THE YEAR Up to $75 Million Alexander Granados, Prescient Edge Dr. Sarbari Gupta, Electrosoft Services Kendall Holbrook, Dev Technology Kavita Kalatur, NetImpact Strategies, Inc Jared Shepard, Intelligent Waves Paul Strasser, Brillient Corporation Erik Wittreich, Ridgeline International $75 – 300 Million Madhu Beriwal, IEM John Hassoun, VT Group Anirudh Kulkarni, CVP (Customer Value Partners) Zachary Parker, DLH Corporation Chris Wynes, METIS Solutions Over $300 Million Bruce Caswell, Maximus John Heller, PAE Roger Krone, Leidos Scott McIntyre, Guidehouse Julian Setian, SOS International

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Welcome New Q3 PSC Members!

Membership Engagement by Role

There is a membership path for a variety of roles within each member company. View the snapshot below and learn more in the PSC Member Engagement by Company Role handbook.

• C-Suite and Senior Executives • Strategy, Management and Operations

View all the way you can engage with PSC based on your company role in the PSC Member Engagement by Company Role . Handbook

• Business Development • Marketing and Communications • Government Relations • Contracts and Legal • Human Resources and Security • Information Technology and Cybersecurity Visit www.pscouncil.org/engage_by_role

For more information on PSC membership, contact membership@pscouncil.org.

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UPCOMING CONFERENCES & MEETINGS CONFERENCES

Vision Federal Market Forecast Conference

2020

CONFERENCE

Nov. 9 – 10, 2020 | 8:30 a.m. – 11:30 a.m. Daily Want to grow your business in the years ahead? Attend the virtual 2020 Vision Conference to access the only non-profit federal market forecast that addresses the defense, civilian, and federal IT markets. The Vision Forecast delivers insights from hundreds of government executives, think tank experts, congressional staff and Wall Street analysts who take part in non-attribution interviews. Get 20+ government-wide, agency and mission-focused assessments that provide agency priorities, program opportunities, budget projections and strategic insights. www.visionforecast.org

Development Conference 8th Annual

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Dec. 8, 2020 | 8:30 a.m. – 2 p.m. Daily Constant changes and challenges are confronting the international development community, particularly with COVID-19 staffing and funding issues, prohibitions on the use of proscribed Chinese telecommunications, and a pending presidential election. Now more than ever, it is vital to hear directly from senior government leaders from USAID at this year’s virtual annual Development Conference. www.developmentconference.org

MEETINGS PSC Service Contract Act Virtual Training

DHS Personnel Security Forum

CMMC Challenges, Disputes and Protests

Contract Finance & Cash Flow Committee

Smart Contracting Working Group

Board of Directors / Annual Member Meeting

Nov. 16 – 17, 2020 | 8 a.m. – 4 p.m. Daily

Nov. 17, 2020 | 2 p.m. – 3:30 p.m.

Nov. 19, 2020 | 1 p.m. – 3 p.m.

Dec. 9, 2020 | 9:30 a.m. – 11:30 a.m. Dec. 15, 2020 | 3:30 p.m. – 7 p.m.

Nov. 18, 2020 | 2 p.m. – 3:30 p.m.

View All Upcoming Events at www.pscouncil.org/calendar 30 / Service Contractor / Fall 2020

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100% VIRTUAL Nov. 9–10, 2020 8:30 – 11:30 a.m. Daily Access the only non-profit federal market forecast that addresses the defense, civilian, and federal IT markets.

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