Service Contractor Magazine - October 2013

October 2013 / The Voice of the Government Services Industry

the PsC Leadership Commission report

recommendations for

A new season in government Performance

ALso inside: 7

ChALLenges in informAtion seCurity

16

Q&A with PhiL LAntz

20

new Vets hiring ruLes

25

new ruLes on humAn trAffiCking

October 2013 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 Bryan Bowman Manager, Marketing bowman@pscouncil.org Matt Busby Manager, Member Services busby@pscouncil.org Joe Carden Vice President, Marketing & Membership carden@pscouncil.org Elise Castelli Manager, Media Relations castelli@pscouncil.org Charlene Dowdy Membership Associate dowdy@pscouncil.org Paul foldi Director, International Development Affairs foldi@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 Petersen Manager, Legislative Affairs petersen@pscouncil.org Melissa R. Phillips Director of Meetings & Events phillips@pscouncil.org Robert Piening Director of Finance piening@pscouncil.org Jean tarascio Manager, Events Services tarascio@pscouncil.org Matthew taylor Policy Associate taylor@pscouncil.org Kristine thomas Executive Assistant thomas@pscouncil.org For advertising or to submit articles or items for the Member News section, contact: Bryan Bowman

The Voice of the Government Services Industry

13

transforming government Services Management

7

16

Sounding Q&a with board: Phil lantz ChallengeS in info SeCurity

20

new VetS hiring ruleS

25

new ruleS on huMan traffiCking

4 President’s Corner / 11 House Intelligence Top Priorities / 22 The Case for an Ethical Culture / 28 Successful Mentor-Protégé Relationships / 31 Bill Tracker / 40 Policy Spotlight / 42 Committee Corner / 43 Member News / 46 PSC Scene & Heard Cover photo: sykono/istockphoto.com.

Service Contractor / October 2013 / 3

PRESIDENT ’S CORNER

T

his summer has been dominated by news about furloughs, the continuing fiscal drama (some might say debacle), defense authorization bills, the implications of the Edward Snowden case, and, of course, continued uncertainty across the federal services sector.

Yet, for this issue of Service Contractor, we’ve opted to focus most of our attention elsewhere. Not because those are not critically important issues—they are and they remain at the forefront of our advocacy, analyses, newsletters, alerts, committee and task force meetings, and, of course, the Annual Conference. Instead, in this issue we focus on a set of questions and issues that may not dominate the news but are nonetheless of significant importance to our industry.

First and foremost, the 2013 PSC Leadership Commission has just released an in-depth report examining how government and industry can transform government services management and inject innovation and efficiency into both processes and outcomes. Our lead story walks us through the findings and recommendations of the commission as articulated in “From Crisis to Opportunity,” which was released in early September and has been briefed to and discussed with a number of top government officials.

We are also pleased to include a conversation with Rep. Dutch Ruppersberger, the ranking Democrat on the House Intelligence Committee, who shares some of his perspectives on current events and top priorities for the committee. In addition, longtime PSC Board member Phil Lantz, the founder and CEO of Systems Planning and Analysis, who is stepping down this year after 40 years at the helm, talks candidly about today’s market and what he believes are the keys to success in the government services industry.

Meanwhile, in our regular Sounding Board feature, three member of our Board of Directors—Ken Asbury of CACI, Kevin Beverly of Social and Scientific Systems, and Gary Slack of QinetiQ North America—take the discussion on cybersecurity in a different direction as they share their per-

4 / Service Contractor / October 2013

spectives on the biggest challenges in ensuring information protection and security within their own companies.

And there is more. On the heels of her company being awarded the United States Agency for International Development’s (USAID) first ever Excellence in Mentorship Award, Barbara Turner, the president of University Research Corporation, explores what it takes to have a successful mentor-protégé relationship. Suzzanne Decker of Miles & Stockbridge gives an overview of the pending veteran’s hiring regulations and preliminary steps that federal contractors can take to ready themselves for the changes ahead; Kelly Heinrich of the Global Freedom Center discusses new contracting rules to address human trafficking; and Jacob Blass of Ethical Advocate offers his take on ethics and compliance pitfalls in today’s environment.

To round out a very full issue Alan Chvotkin discusses the quadrennial reviews at Defense, Homeland Security and State Departments in our Policy Spotlight and the key questions each much address regarding the roles of acquisition, contractors, technology, intelligence, and communication among agencies.

There is indeed a lot going on, and not all of it is front and center. But it all matters. And we hope that you find the perspectives and insights in this issue to be informative and valuable. Please feel free to let us know what you think.

And, thank you, as always, for your support of PSC.

Stan Soloway President & CEO

Professional Services Council

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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.

Challenges in Information Security as the government evolves its own information security policies, what are the two or three biggest challenges you have faced in implementing your own cybersecurity policies and procedures? what do you think other companies need to be most concerned and thinking about?

A ken asbury

President and CEO, CACI International Inc.

t CACI, we take cybersecurity and information assurance very seriously. We recognize that we have a responsibility to identify, disrupt, and defeat those who attempt to obtain a commercial, financial, or military advantage from our corporate information and from the information entrusted to us by our customers. While we know that we cannot achieve a state of complete invulnerability, we strive continuously to provide a world-class cybersecurity environment and information assurance policies.

We have faced several challenges along the way. The first of these is the nature of the cyber threat itself—it is varied and sophisticated. Adversaries are employing an ever-changing range of complex attack methods against corporate networks, and we know that these threats require a correspondingly agile and informed response. continued on page 8

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kevin beverly

Executive Vice President, Social & Scientific Systems

here are a myriad of technology solutions available to address the security threats that firms face. As I see it, the biggest challenge facing companies relates to engaging our employees and the difficulty of creating a culture of security awareness at the individual level. Through our client-funded research in the health field, our firm has been dealing with large volumes of personal health data for many years and we have always understood the importance of protecting client data but there are challenges.

First, get agreement across all of the internal business units that specific policies or procedures meet the mandatory compliance requirements as well as support the overall business objectives. To have any hope of fully addressing this issue requires having effective collaboration from all of the affected business components, coupled with clear communications from the firm’s leadership about the objectives to be achieved. continued on page 43

Photo: vladru/istockphoto.com

A gary Slack

President and Chief Operating Officer, QinetiQ North America

s the government undergoes its migration to the cloud and the adjustment of its security policies accordingly, QinetiQ North America has adapted its architecture and information assurance policies and procedures to align with government goals.

Relative to our specific cyber/information assurance policies, we had to consider the proliferation of mobile devices and cloud offerings. Therefore, the challenge was to create policies and procedures that addressed the complexities and security nuances associated with those devices and offerings.

Another challenge was cultural adoption of these policies—whereby user acceptance and awareness was crucial in making them effective. This was achieved through aggressive education and employee training.

In the Defense business, QinetiQ North America operates in a highly targeted environment. As such, security is an essential element and integral to what we do and what we deliver continued on page 45

Professional Services Council

Service Contractor / October 2013 / 7

ken asbury

continued from pg. 7

At the same time, the many exploits available to those who attempt unauthorized access mean we need to come up with an equally diverse range of technological, as well as procedural, solutions. Technology in the cyber defense area tends to be expensive, so identifying the appropriate balance between cost and risk mitigation is an ongoing challenge for us.

Finally, because we are always striving to make continuous improvements in our network performance, we are constantly upgrading our architecture—which, in turn, creates opportunities for new vulnerabilities to arise. Similarly, our business often involves support for varying client environments, which may call for hardware and software that varies from our corporate standards. Mitigating the vulnerabilities that come along with this requires close collaboration between our Chief Information Officer (CIO), who is responsible for our network operations, and our Chief Security Officer (CSO), who is responsible for information assurance.

CACI has addressed our cybersecurity challenges in several ways. First, we have separated responsibility for IT system operations from IT system security. This approach offers a number of advantages over the more traditional model—where a Chief Information Security Officer (CISO) typically reports to a CIO—because it eliminates the inevitable conflict that arises when a CIO is required to balance schedule, cost, and capabili-

ties against security. At CACI, this separation of duties ensures security receives the independent focus, attention, and priority that is essential in today’s threat environment.

Another benefit of separating internal cybersecurity from IT operations is that we have reduced our tendency to look at cyber threats as a strictly technological issue that calls for an exclusively technological response. We have deep counterintelligence and criminal investigative expertise in our security organization that helps us to anticipate, understand, and respond to IT system threats in a more holistic way. This is reflected in the training we provide to our workforce. We strive to maintain a balance between user productivity and secure behaviors, supported by appropriate security technologies, practices, and policies.

In thinking about other companies faced with similar cybersecurity challenges, I’d say that they should focus on the ways in which their businesses are connected to others, such as vendors, suppliers, customers, subcontractors, and partners. A weakness in any one of these can easily become a vulnerability in a business environment where we often interact with one another. In other words, IT system vulnerabilities pose a supply chain security threat. I believe we will increasingly see requirements imposed by our government customers and our private-sector partners that speak to the integrity of the IT systems upon which any one of us relies, to some extent, in our relationships with each other. 3

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The House Permanent Select Committee on Intelligence

Top Priorities

by Congressman Dutch Ruppersberger, D-Md.

T

he House Permanent Select Committee on Intelligence (HPSCI) has the tremendous responsibility of authorizing funding for and overseeing the U.S. government’s intelligence agencies, including the Central Intelligence Agency, the Federal Bureau of Investigation, the National Security Agency, and the other military and intelligence agencies, and their activities. HPSCI conducts rigorous oversight of these agencies, asking them tough questions and ensuring that their actions not only protect our country, but are sanctioned under the law and protective of American’s privacy.

There are a number of pressing priorities facing the committee including: • Protecting our nation against terrorism, • Operating in a bipartisan manner, • Promoting cybersecurity, and • Encouraging investment in space technology.

Terrorism

Our first priority must be protecting the American people.

We must provide our intelligence professionals with the resources, authority, and capabilities they need to keep us safe. Whether it is ensuring they have the latest in technology to track terrorists around the world or investing in the intelligence professionals who risk their lives around the globe to keep us safe, it is our responsibility on the Intelligence Committee to make that happen.

Bipartisanship

When Chairman Mike Rogers, R-Mich., and I took over leadership of the Intelligence Committee in 2011, we made a commitment to passing an intelligence budget every year to ensure proper oversight of the intelligence community and provide critical financial guidance. We kept that commitment.

Over the last two and a half years, we passed not just one or two, but three Intelligence Authorization Acts for fiscal years 2011, 2012 and 2013 with overwhelming bipartisan majorities.

In this era of partisan politics, those numbers are pretty impressive. We are getting things done and giving our intelligence professionals what they need to protect this country to thwart and confront existing and emerging threats.

Photo: alxpin/istockphoto.com

Cybersecurity

Another one of the committee’s top goals is cybersecurity.

Every day, our government and private networks are hit by a relentless onslaught of cyber attacks. Countries like China and others are robbing American businesses blind. The theft of valuable U.S. trade secrets has already cost America $400 billion worth of trade secrets, according to U.S. cyber command, not to mention thousands of jobs. We must work to shore up our

Professional Services Council

cyber networks and protect our country from those who want to harm us financially and otherwise.

Chairman Rogers and I sponsored common sense legislation, the Cyber Intelligence Sharing and Protection Act, known as CISPA, to allow American companies to receive classified cyber threat intelligence to protect themselves before an attack occurs. CISPA allows for two-way cyber threat information-sharing between industry and the government on an entirely voluntary basis to help protect our critical cyber networks while also guarding privacy. On April 18, 2013, the House passed CISPA with an overwhelming bi-partisan margin.

It is one of the only pieces of cyber legislation to pass a chamber of Congress. We look forward to movement in the Senate.

Space

Another one of the committee’s priorities is encouraging investment in space technology and using that technology to protect our nation. More than 50 years after America landed a man on the moon, our nation’s dominance in space is fragile. Years of undisciplined program management, skyrocketing launch costs, export controls that were just recently updated and the lack of a defined space plan are all contributing to the problem. An uncertain future and immense budget constraints are jeopardizing years of billion dollars worth of investments and shaking the space industrial base, a group of highly skilled workers who are critical to our power in the skies. At the same time, other countries like China and Russia are trying to outpace America in space.

Satellites and other space technology are critical to the security of our nation because they keep us safe and they spur innovation in the private sector as well. We use satellites to track suspected terrorists around the world and stop future attacks.

Satellites are an integral part of our worldwide communication system and our country’s economy.

We must invest in long-term strategies to keep our space industry alive. Our future in space must be built upon a robust government and corporate partnership. The government must work with American companies that specialize in space launch to give them a chance to bid on contracts to safely put U.S. satellites in space. We must also invest in Science Technology Engineering and Math (STEM) curriculums and training for middle school and high school students in the United States.

Conclusion

The House Intelligence Committee has much to achieve in the coming days, but together Democrats and Republicans will work together on the committee to achieve these important initiatives. 3 Service Contractor / October 2013 / 11

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PSC Commission Makes Recommendations to

Transform

Government Services Management

by Elise Castelli, PSC Media Relations Manager

T

he government is at a critical crossroads, contending with fiscal uncertainty and austerity, coping with a rapidly escalating human capital crisis, a pace of change in technology never before seen, and diminishing public confidence.

Since acquisition is responsible for over 45 percent of the government’s discretionary spending, it follows that it should also be a primary focus of leadership in every government component and positioned to enhance the quality and efficiency of government service delivery. To date, it has not been. It is now time to address half of the discretionary spending pie.

The pressures under which the civil service and its implementing partners (contractors, non-profit organizations, FFRDCs and others) are expected to deliver more and better services make it nearly impossible to sustain that current level or performance, let alone strive for new levels of excellence and innovation. That is why, at the start of this year, PSC convened the 2013 PSC Leadership Commission. It published its findings and recommendations in September.

The Commission report, “From Crisis to Opportunity: Creating a New Era of Government Efficiency, Innovation and Performance,” does not claim to have “cracked the code” on addressing the myriad issues.

However, it has coalesced the thinking of highly experienced PSC member-company executives with deep roots in and around government, as well as the insights and perspectives of government acquisition, technology and human capital leaders, to present a framework through which both short- and long-term initiatives can address the current crises and help turn them into exciting opportunities.

To that end, the Commission found the government is facing a human capital crisis, lacks the flexibility to apply tools to deliver excellence and incentivize high performance, and needs stronger leadership to affect the culture change needed to drive innovation and excellence across the government.

To address these findings, the Commission made the following key recommendations to the government and industry. With regard to the human capital crisis, the Commission recommended that the government, among other things: • Create a joint working group of senior Office of Federal Procurement Policy, General Services Administration, Defense Department, Homeland Security Department, and other agency officials representing acquisition, technology and human capital leadership to assess the intersection of human capital planning in the acquisition and technology fields. continued on page 14

Professional Services Council

Service Contractor / October 2013 / 13

from page 13

• Launch a research program to demonstrate the potential for alternative acquisition workforce training and development methods, emphasizing business acumen, a strong reliance on contemporary online training tools, and enhanced continual learning opportunities.

• Establish an interagency Acquisition Excellence Council comprised of senior leaders, frontline staff, and external stakeholders to devise new, standardized training and evaluation regimes.

• Design a new human capital strategy model for both acquisition and technology personnel with rapid rotations across broad functional areas (such as budget, program management, IT, and HR), along with early and continual career development review and standard path development for new hires.

• Create mandatory “cross training” requirements for acquisition, technology and oversight/audit personnel, including basic courses within each functional area as well as in outcome-focused performance management.

With regard to improving processes and outcomes to deliver excellence and incentivize high performance, the Commission recommended that the government, among other things: • Create a new taxonomy for services that provides a basis for aligning what is being procured with options avail-

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able to the government regarding how to procure it. A clear, pre-award framework of this type will help improve outcomes and drive innovation.

• Include specific source selection scoring for innovation where innovation is desired in the acquisition. For bidders, the inclusion of such criteria signals a seriousness of purpose on the part of the customer.

• Avoid using lowest price technically acceptable (LPTA) acquisition processes for any requirement for which new or innovative solutions are sought. Only true best value approaches avail the government of the flexibilities needed to obtain such solutions.

With regard to building a culture of innovation and excellence, the Commission recommended that the government, among other things: • Establish “360 degree reviews” through which bidders can give anonymous and candid feedback to the agency about what did and didn’t work and why. The results would provide lessons to acquisition professionals and customer agencies about how to become better buyers.

• Require that post-award debriefings be substantive, interactive and provide a quality and scope of information to unsuccessful offerors similar to what would be provided through a formal discovery process.

• Convene program-specific stakeholder meetings focused on specific goals that identify effective practices, increase adoption of those practices, and find lower costs.

• Create a government-industry exchange program in which government employees have the opportunity to gain a better understanding of how industry functions. This program must be implemented carefully to avoid any potential conflicts of interest.

The PSC Commission also recognized that industry has a critical role in bringing about necessary changes. As such, the Commission recommended that industry: • Convene a joint panel of industry and government to craft recommendations on how to institute balanced and meaningful reforms to the protest process.

• Develop a template to be used as a proposal addendum through which companies can identify and monetize proposed innovations or performance objectives that exceed the requested minimum.

• Develop and make available (without charge) an online, strategic acquisition course focused on consumptionbased acquisition/infrastructure as a service. The course will be designed to help government entities establish effective requirements and execute an appropriate and effective acquisition strategy.

In short, the government’s current strategy of throwing money and resources at challenges and “nibbling around the edges” of longstanding strategies will only perpetuate the current trajectory. Through the report’s recommendations, the PSC Commission believes that it has provided a way forward that should move the government and its industry partners from crisis to opportunity. 3 Professional Services Council

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Lantz in the early days of SPA.

& A Q

with Phillip E. Lantz founder of systems Planning and Analysis, inc.

16 / Service Contractor / October 2013

Professional Services Council

for everyone associated with SPA: employees, their families, our clients, our teammates, our suppliers, and even our competitors.

This longstanding consistency of focused action has been our key to success.

SPA Corporate Objectives: • Perform interesting work that impacts important decisions.

• Maintain marketplace integrity.

• Maintain high-quality staff.

• Provide opportunity for individual initiative.

• Provide a good working environment.

• Remain profitable.

sC: would the principles that made you successful apply to a firm starting up today?

PL:

During my more than 40 years in this business, I have seen the business environment change almost continually. Specifically, the tide of business opportunities has ebbed and flowed several times during my tenure. Each time there is a significant change of direction there are organizations that race to the front of whatever trend is current. That approach does not align with my principles. Rather, we have stuck with the original objectives (and principles) and have found the need for our services has Phillip Lantz founded systems Planning and been and continues to be recognized by many senior leaders.

The current business environment for professional services conAnalysis, inc. (sPA) 41 years ago with three people and one goal: to be an ethical contractor who tractors, particularly in the DoD environment, makes starting a firm today especially challenging. Building on solid principles and knowcontributed to interesting and important work that ing what your firm is about becomes critically important because impacted national security decisions. Because of his there is little margin for error. Anyone starting a business today needs desire to build his business on principle and integrity not only a guiding set of principles, but also a good knowledge of the first, with profits being a result rather than the driv- current market and the stamina to flourish under the workload and ing force, many asked him, “So Phil, what do you plan pace essential to success.

If I were starting a business now, I would spend some time definto do next?” Fortunately, he never had to find out. ing my fundamental principles and objectives and ensuring they were Today, SPA employs more than 450 people who consomething I could deeply commit to and sustain. Otherwise, I might tribute to decisions made by key leaders in the Depart- find myself in a business that I was not particularly proud of.

EO, t and C presiden , nc. tz I n s, a si L . aly Phillip E nning and An Pla Systems

ments of Defense, Homeland Security, and Energy by providing timely and objective support that balances the technical, operational, programmatic, policy and business aspects of national security issues.

As he prepares to step down from the role of president and CEO of SPA, a title he has held for more than four decades, he shares his insight about the keys to success in the ever-changing government services industry. Lantz will remain as SPA’s chairman of the board.

sC: how has the government and industry’ss approach to risk/failure changed? how has that change af-fected the marketplace and doing business?

PL:

As an entrepreneur who started a small business with no outside financial help, I went into it feeling that I was assuming the majority of the risk and that my employees were sC: to what do you owe the success of sPA? also sharing in the risk. I came Lantz accept Phillip Lantz (PL): SPA has a proven sense of identity that to understand that most of the s the award for SPA’s sele as Governm guides us. We know who we are, and just as importantly, who we government officials with whom ction ent Contrac tor of the Yea ($ 7 5 are not. Let me explain. For my entrepreneurial endeavor to be -$300 Milli I have dealt have been a pretty r on category ) in 2011. successful, I think there needs to be a single guiding objective or, risk-averse group and did not at most, a small number of prioritized objectives that focus the have much appreciation for the risk being entrepreneur and the core team from the beginning. For me, and taken by an entrepreneur nor for any potential failures. In those thus for SPA, there are six corporate objectives (below), written cases where I felt my company was most effective in meeting (and down almost 40 years ago, which define us, focus everything we usually exceeding) client expectations, the difference frequently do, help determine what not to do, and provide expectations came down to a mutual understanding and appreciation of each continued on page 19 Professional Services Council

Service Contractor / October 2013 / 17

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other’s needs. When we worked things as a team, things nearly always worked for both sides. This has not changed.

One troubling difference I am seeing today stems from some of the initiatives designed to save money in contracting. Whether it is arbitrary rules that fail to discern and value the range of complexity of the services or poor implementation of the rules, the end result is the failure to achieve the all-important mutual understating of value to both the contractor and the client. This has translated into higher costs in the long run, poor quality work, and ultimately, more risk to all concerned.

objectives. In business, as in life, there are many temptations. It is important to stay focused on the things you know to be important.

sC: As you look back on your career, what was your greatest failure? how did you apply that experience to ensure future success?

PL:

Many, if not most, of life’s lessons come from encountering problems, having things not go as planned, or experiencing some failure. By that definition, I have had many learning Lantz is interviewed by a local opportunities and think that I have radio program about the importance learned a lot along the way. of leadership.

One of the axioms for success is to sC: what should today’s entrepreneurs/ take care of problems when they are aspiring business leaders know to mimic small. They don’t get better with age. your success?

The same applies when things don’t go as planned. It is imSuccess, for me, is about principles, integrity, portant to catch problems early and to avoid major failures. priorities, and a long-term vision. It is generally not Looking back, I frankly can’t name a “greatest failure.” about near-term gains and maximizing profits. The I believe that I have been fairly successful in identifying profits are the results of successful work and not themselves the and addressing problems early, when they were small, and success. Because I went into a business knowing the kind of avoiding major failures. I have taken risks in business; some work I wanted to do and the principles for doing it, I always situations have worked out and some haven’t. I have tried to felt that business decisions were pretty easy. One thing that I learn from each of these problems and plans that didn’t work learned along the way is that it is at least as important to know out but there have been no great failures, no “going bust.” what you do not want to do and why, as it is to know your Maybe that defines my success. 3

PL:

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Preparing for Increased Veterans Hiring Requirements

by Suzzanne W. Decker, Miles and Stockbridge

W

ith the return of thousands of service men and women from Afghanistan and Iraq, there are an increasing number of veterans reentering the job market. In anticipation of the conclusion of these military engagements, the Obama administration, through the Office of Federal Contract Compliance Programs (OFCCP), released final regulations in August directing federal contractors to take steps to increase their veterans workforces. A related final rule covers hiring individuals with disabilities. The regulations, although initially proposed in 2011, finally will go into effect in February 2014 and federal contractors should take steps now to prepare for them. Additional Federal Acquisition Regulation (FAR) rules will also be forthcoming.

The new OFCCP regulations will apply to any affirmative action plan (AAP) developed after the effective date. If the AAP is in existence prior to the effective date, the contractor can delay implementation until the next plan year. The OFCCP regulations require federal contractors to: (1) expand the invitation for veterans to self-identify their status in connection with company employment applications; (2) establish separate hiring goals/ benchmarks for veterans and the disabled; and (3) take good faith efforts. The OFCCP estimates these actions will have an annual cost to contractors of no more than $880 per establishment.

Self-Identification

The self-identification veteran categories have been modified to include recently separated veterans, disabled veterans, Armed Forces service medal veterans, and active wartime or campaign badge veterans. The invitation for applicants to self-identify must also include a question regarding the “existence of disability.”

Questions will not be permitted regarding the nature or the severity of the disability. However, even this limited inquiry appears to run afoul of the Equal Employment Opportunities Commission’s (EEOC) guidelines on the Americans with Disabilities Act (ADA). This conflict will require further clarification by OFCCP and the EEOC. To minimize risk, the contractor should make certain that no decision-maker at any stage of the hiring process is privy to the information about a disability. In addition, contractors must survey its current employees the first year after becoming subject to the new regulations, and every five years after that.

The regulations require federal contractors to establish hiring benchmarks for veterans. The employer may use the national percentage of veterans in the civilian workforce, which is currently 8 percent. The employer also has the option of calculating its own benchmarks, taking into consideration: (1) the percentage of vet-

20 / Service Contractor / October 2013

Good Faith Efforts

Even the most diligent federal contractor will not be able to implement such drastic change immediately. Thus, the OFCCP will be looking for good faith efforts. There are three steps that can be taken now to prepare and that will contribute to these good faith efforts: (1) expand effective recruitment efforts for the disabled and veterans; (2) improve the documentation around workplace accommodation; and (3) modify the company’s self-identification forms to prepare for implementation.

There are numerous job fairs for veterans that can help expand recruitment efforts. Your local employment services office may also be able to suggest recruiting sources. In the event of an audit, it is critical that the contractor be able to produce the name, date, and location of the job fair, the contact person and the contact person’s phone number. Federal contractors Professional Services Council

Photo: PinkTag/istockphoto.com

Benchmarks

erans in the local civilian workforce; (2) the number of veterans who participate in the state’s employment system delivery service; (3) the referral, applicant, and hiring ratios; (4) the contractor’s recent assessments of outreach; and (5) any other factors that would likely affect the number of qualified protected veterans in the applicant pool. The problem with such a contractor-established benchmark is the lack of reliable data regarding the number of qualified veterans in the workforce. Another difficulty will be that contractors who successfully increase veteran applicants may be held to a higher threshold than those contractors who make less of an effort, which will result in a double standard that may hamper the implementation of truly effective benchmarks.

should use such recruiting sources but must also assess whether individual sources are effective. The failure to focus recruiting efforts on those sources from which the employer will truly hire may lead the OFCCP compliance officer to find that the contractor is not engaged in good faith efforts.

Most employers would also do well to improve documentation around workplace accommodation, including those who self-identify as disabled, requests to engage in the interactive process, and the final accommodation decision. In many orga-

nizations, the implementation of a disability accommodation policy is done at the department level and decisions are made ad hoc without proper understanding of the ADA’s obligations. A key component here is creating a central repository for requests and complaints.

The new regulations also expand the mandatory requirements on the contractor to disseminate its affirmative action policy. The contractor must provide written notice to its subcontractors, include the policy in company handbooks and notify union officials who represent current employees.

The OFCCP regulations will greatly expand the affirmative action obligations of federal contractors. Taking a few steps now will smooth the implementation requirement and may allow the contractor to assert a “good faith efforts” defense in the event of an audit.

Suzzanne W. Decker is a principal in the Baltimore office of Miles & Stockbridge P.C. She has extensive experience assisting federal contractors in meeting the obligations of the Department of Labor’s Davis-Bacon and Service Contract Act regulations as well as the OFCCP’s affirmative action requirements.

The opinions expressed and any legal positions asserted in the article are those of the author and do not necessarily reflect the opinions of Miles & Stockbridge, its other lawyers, or Service Contractor Magazine.

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The Financial and Reputational Case for a

Deeply Embedded Ethical Culture

by Jacob Blass, President of Ethical Advocate

I

n a (highly) regulated work environment, leadership frequently fails to distinguish between compliance and ethics. Compliance is typically defined as adhering to a specification, policy, standard or law and reflects having appropriate systems and controls in place that conform to required standards. Ethics identifies right and wrong behavior, is frequently subjective, and in the work environment reflects the culture and how it is strategized, prioritized and enforced, or even paid attention to.

Being in compliance might affect ethics; however, it is not quid pro quo.

Enron was widely looked upon as the paragon of well-developed compliance and ethical policies; but its failure spectacularly underscores that lofty words on paper and checked compliance boxes do not mean a company will do the right thing.

The government contracting world is a primary playground for how ethical issues are played out under the public’s and government’s microscopic eye.

Every incident seems to garner headlines. Despite government contractors’ immeasurable contributions to our country’s safety and security, the sector is consistently targeted for scrutiny by government regulators and agencies around the world for violations related to fraud, waste, financial mismanagement, conflicts of interest and bribery.

Escalating enforcement of the U.S. Foreign Corrupt Practices Act poses risk to both U.S. and non-U.S. companies.

Newer and country-specific laws including the United Kingdom’s Anti-Bribery Act, China’s Amendment 8 of the PRC Criminal Law and Australia’s Crimes Legislation Amendments of 2010 confirm the evolving compliance chal-

22 / Service Contractor / October 2013

lenges to global government contractor companies.

Being in compliance and having proper internal controls are critically important, yet many companies who are in compliance do not devote the time, energy and intellectual commitment to a deeply embedded ethical culture. As again evidenced by Enron, codes of conduct, ethics policies and compliance measures just become boxes to check and words on the wall without an ethical culture to embed it in the daily actions of the company.

The government cares; data from the Interagency Suspension and Debarment Committee on the status of the federal suspension and debarment system reflects the following alarming numbers for fiscal year’s 2009 - 2011:

Over 1,950 suspensions and 5,550 debarments in just those three years!

And as the numbers go up year by year, there is no reason to believe the trend won’t continue. Most important, the financial, reputational and human pain is enormous, even when people of no intentional ill-will make mistakes resulting in contracts suspended, no business coming in, extraordinary legal expenses, layoffs (one company went from 1,000 to 50 FTE’s) and reputations soiled.

There is another distinct motivation for having deeply embedded ethical cultures, again with significant financial implications. According to recent Association of Certified Fraud Examiner surveys, fraud is as common in business as coffee cups.

• 45 percent of all companies experience fraud at any given time and it’s not paper clips and post-its; the median fraud incident is $140,000.

• 25 percent of fraud incidents are in excess of $1 million.

• A typical company loses 5 percent of its revenue annually to fraud.

• Perpetrators with higher levels of authority cause much larger losses.

The median fraud loss caused by managers is $180,000 and the median loss committed by executives is $573,000.

Sixty percent of a company’s market value is based on its reputation, according to a November 2011 global study commissioned by PR firm Weber Shandwick. Data shows that employees in organizations with strong ethical cultures and formal programs are 36 percentage points less likely to observe misconduct than employees in organizations with a weak culture even with full formal programs. What you do counts much more than what you say.

Even for companies where leadership wants to do the right thing, ethics as a strategy is rarely a defined part of management decision making. The failure then is that ethical issues become managed by incidents as opposed to strategies, tactics, goals and measurements in a deeply embedded ethical culture that won’t tolerate misconduct.

Yet, ethics is about the bottom line.

Ethisphere Institute, a leading thinktank dedicated to business ethics, annually creates a list of “the world’s most ethical companies,” that demonstrate real and sustained ethical leadership within their industries. In 2011, there were 110 such companies. The following graph boldly illustrates that investProfessional Services Council

Perc Pe rce rc ent Returns - W World’ orld’s Most Ethical Companies vs. S&P 500 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50%

2007

2008

2009 WME

ing in ethics is beneficial for any company, even in a recession, as it compares all the publicly traded honorees against the S&P 500 since 2007.

This data, along with the government encouraging employees to bypass internal compliance programs and report instances directly to federal agencies, underscores that corporate ethical culture and trainings now take on an even more significant role. It’s of great importance to employees—and the organization—for its leaders to be ethically driven.

Critically and where most organizations fall short with respect to the ongoing management of an ethical culture is commitment, rigor and the alignment/ integration between words and actions— actionable and measurable strategies and tactics that will (re)create, deepen and shape their ethical culture and reputation. And while leadership sets the tone, it would do well to involve employees from across the entire enterprise to help organizational buy-in. Following are concrete, measurable actions that can put organizations on the right track: Organizational Structure, Culture and Commitment: Addresses your organization’s overall approach to ethics and compliance, including philosophy, articulation, and how the expectations are embedded.

Professional Services Council

2010

2011 (YTD)

S&P 500

EXAMPLES: In a contest between upholding principles and seeking profit, how do you evidence that principles come first?

Are ethics and compliance stood up for even if deemed controversial?

Are ethical awareness and actions incorporated into the selection of executives and management, and in their performance evaluations and promotion decisions?

Leadership Commitment: Responsibilities of the organization’s leadership in shaping, guiding, and supporting the organization’s ethics and integrity initiatives.

EXAMPLES: Are management pay, bonuses and promotions tied to ethical indicators?

Is it clearly articulated that part of senior managementt’s responsibilities is to be seen as models of ethics and provide leadership in this arena?

Legal and Compliance Policies: The core laws, policies, rules, and guidance that comprise the legal framework for the organization’s ethics and integrity systems.

EXAMPLES: Has your organization articulated the ethical standards and principles expected of third parties?

Is your organization knowledgeable of and in compliance with the laws of jurisdictions that it operates in?

Discipline and Rewards: How the organization sets and enforces its standards for ethical conduct and behaving with integrity – all the way up to the C-suite and Board.

EXAMPLES: Has your organization taken disciplinary action against high-performing executives for ethical or compliance breaches?

Have leaders and managers consistently taken disciplinary action when necessary with regard to unethical acts?

Ethics Communications: Describes how the organization’s ethics and integrity initiatives are articulated and promoted, both internally and externally.

EXAMPLES: Is there a clear articulation of executive commitment to ethics as demonstrated by speeches or other correspondence and communications from the CEO or other senior executives?

Is there a narrative description of business ethics in action as demonstrated by the company’s response to a specific challenge?

Warren Buffett famously said “It takes 20 years to build a reputation and five minutes to ruin it.” He also less famously said “Lose money for the firm and I will be understanding; lose a shred of reputation for the firm and I will be ruthless.”

This is especially germane to government contractors where public trust has become compromised and it is under the glaring spotlight of scrutiny. Companies must go beyond making statements about doing business ethically and translate those words into action. Leaders must lead. Deepening an ethical culture requires a commitment equal to making the bottom line numbers sing.

Jacob Blass is the president of Ethical Advocate, a Chapel Hill, N.C., based company providing ethics and compliance trainings and consultation to organizational leaders; and the provision of anonymous and confidential whistleblower systems.

Service Contractor / October 2013 / 23

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New Rule Requires Contractors

to Address Human Trafficking

by Kelly Heinrich, Global Freedom Center

Photo: badmanproduction/istockphoto.com

H

uman trafficking is the practice of physically or psychologically compelling another to work or to provide commercial sex services. Worldwide, 27 million people are estimated to be trafficked with 78 percent held in labor trafficking and 22 percent in sex trafficking. Incidents have emerged in nearly every sector, including security, construction, janitorial services, agriculture, food services, and more. The Department of Labor annually documents goods confirmed to have been produced with forced labor, showing that forced labor is deep within supply chains and in the goods we purchase and the services we procure.

Companies are now reexamining their efforts to identify and prevent forced labor in response to laws and regulations requiring public disclosures regarding responsible sourcing and global workplace compliance through all supply chain tiers. The federal government is similarly stepping up its requirements for federal contractors and subcontractors in solicitations, contracts, and subcontracts for supplies or services.

Since 2006, the FAR requires contractors and subcontractors to notify government employees of trafficking violations and puts parties on notice that the government may impose remedies, including termination, for failure to comply with the requirements. The FAR also requires federal contractors to put in place policies and procedures to identify and prevent forced labor, inform employees of the policy and consequences, and include the “Combating Trafficking in Persons” clause in any subcontracts. Contracts can be terminated and contractors can be debarred, although that has not yet happened.

In September 2012, President Obama issued a new executive order, “Strengthening Protections Against Trafficking in Persons in Federal Contracts,” saying: “[A]s one of the largest purchasers of goods and services in the world, the United States government will lead by example. We’ve already taken steps to make sure our contractors do not engage in forced labor. And today we’re going to go further. I’ve signed a new executive order that raises the bar. It’s specific about the prohibitions. It does more to protect workers. It ensures stronger compliance. In short, we’re making clear that American tax dollars must never, ever be used to support the trafficking of human beings. We will have zero tolerance. We mean what we say. We will enforce it.”

Pressure from Congress, findings of the Wartime Contracting Commission, audit reports on high risk government contracts, and the desire of senior government officials to lead by example culminated in the president’s executive

order. Under the order, federal contractors, contractor employees, subcontractors, and subcontractor employees are expressly prohibited from: • engaging in fraudulent or misleading labor recruiting either by failing to disclose basic information or misrepresenting the terms of the job such as wage and benefits, location, housing, costs, and hazardous nature of the work, • charging recruitment fees, and • destroying, concealing, confiscating or denying employees access to their identify documents.

For all contracts $500,000 or greater or that are to be performed abroad, contractors and subcontractors must maintain a compliance plan and post it publicly on their website including: • the process by which employee can report complaints and violations, • recruitment by companies with trained employees and that does not charge fees, • wages according to local law, continued on page 26

Professional Services Council

Service Contractor / October 2013 / 25

from page 25

• housing that meets local housing and safety standards, • an employee awareness program about the corporate policies and actions taken against employees for violations, • procedures to prevent, monitor, detect and terminate any subcontractors or subcontractor employees for engaging in human trafficking or related activities, and • certification by each contractor and subcontractor that none have engaged in human trafficking or related activities and that there is a compliance plan in place.

Additionally, contractors and subcontractors are required to provide reasonable access and comply with investigations and audits.

As of the end of July, the proposed FAR rule implementing the executive

order was still being drafted. But it behooves federal contractors to not wait for these rules before examining their current compliance status.

Enforcement

In addition, federal contract enforcement is already ramping up. For example, last year, the federal government launched mandated training for federal contracting officers responsible for oversight of individual contracts. Contracting officers are now trained on human trafficking and contract requirements, how to assess compliance, how to conduct verification, and what to do in cases of violations, including terminating contracts and recommending contractors for suspension or debarment. Multiple agencies have publicly posted the guidance to their contracting officers, keeping the issue at the forefront of their attention and underscoring its importance to the relevant agency and the administration.

Other Risks

Beyond compliance, implementing corporate policies and practices that identify and prevent human trafficking is a necessary and appropriate risk mitigation strategy. Companies have faced everything from a reputation damaging media explosion to shareholder lawsuits to becoming the target of watchdog organizations, all of which involve expenses and a disruption to their business.

Ensuring due diligence today regarding compliance and developing broader risk mitigation strategies not only protects the company but also enhances its brand as a socially responsible firm.

Kelly Heinrich is the president of the Global Freedom Center.The Global Freedom Center’s expert attorneys have more than a decade of human trafficking experience including federal government service regarding FAR clause enforcement. Learn more at www.GlobalFreedomCenter.org.

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Professional Services Council

Being Successful in a

Mentor-Protégée Relationship

by Barbara Turner, President, URC

O

n behalf my company, University Research Co., LLC (URC), I was proud to accept from the United States Agency for International Development (USAID) their first ever Excellence in Mentorship Award. It was particularly significant to me since URC started out 48 years ago as a small business, the idea of a group of university professors to introduce change and innovative approaches based on evidence. Today URC is active in the U.S. and over 45 countries around the world improving health and social service delivery and is recognized as a worldwide leader in the application of the science of quality improvement to enhance the effectiveness, efficiency and scale up of health systems innovations.

This award was made in May during the agency’s Sixth Annual Small Business Conference, a venue for small businesses to convene, discuss success stories, network with other small businesses, and receive guidance on business and managerial practices.

I was surrounded by leaders of small business that serve the global development community. The energy and dynamism of the small

business leaders was palpable in the room. It reminded me how much is required of a small business working in the international development context where they must not only contend with the maze of U.S. government. rules but also the complexities and risks of host country environments which don’t always have consistent business practices or commercial law.

The award recognized the significant developmental assistance our company provides to our small business protégé, Women Influencing Health Education and Rule of Law, LLC (WI-HER).

Through the USAID Mentor-Protégé Program, URC engages WI-HER to strengthen aspects of our international health work, especially gender integration, through a range of sub-contracting mechanisms. We also provide in-kind assistance to them in developing their financial management, strategic planning, organizational management structures, and human resource policies.

URC also provides logistical support for WI-HER staff related to overseas field assignments and travel and guidance on USAID rules and regulations.

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Professional Services Council

We initially chose to support WI-HER to improve the quality of our gender integration strategy as an element of our heath care quality improvement contract with USAID. WI-HER’s creative and empowering approach to a rather traditional problem made us want to work more closely with them on a number of projects, and the longer-term “Mentor-Protégé” relationship made sense.

Dr. Taroub Faramand, president and founder of WI-HER, said: “URC has had a huge impact on my work. I am very grateful to URC staff for their professional, highly ethical and collegial treatment. I feel like everyone at URC, including technical staff, finance, contracts, communications, human resources, administration and management, is watching out for us and wants us to succeed. My partnership with URC allowed me to realize my dream.”

However, URC did not enter this relationship as a philanthropic or humanitarian endeavor. It is good business. WI-HER helped us focus on an old problem in a new way, helped our existing staff see the issues with a new enthusiasm, and for at least one of our award-fee based projects, assured we received high marks for the gender integration work. A few key guiding principles that made this relationship work for us—and for others—include: • Make sure it is a good fit: It is important to have common work-related interests, values and goals before you make a commitment to each other. Both parties need to bring something to the table. You need to take some time understanding where the partner is strong and where they need help. Just trying to meet targets is not enough to make it a good proposition.

• Be flexible: Both sides may need to make some adjustments in their traditional operating style. Initial opportunities may be a lot less than the small business is expecting. They may have to make some sacrifices. Loaded labor rates of small businesses are often larger because they do not have the volume and streamlined processes to support the complexities of government contracts. Be ready to make some compromises in pricing on both sides. In our experience not every contracting officer or technical officer appreciates the value of the mentor protégé program and how it works.

We found ourselves often asked why and how we had selected the sub-contractor. Be prepared to walk them through the program and engage the agency’s office of small business.

• It’s not just the money: Providing a source of revenue for both parties is key. But transferring knowledge on managing funds, invoicing, audits, work-plans, reporting, HR policies and other foundations of good business is equally valuable in the long run. The program is not intended as a subsidy but as a way to develop the capability of the small business to undertake government contracts. The capacity to deliver after the award is more important to long term revenue than the capacity to put together a good proposal.

USAID has done large and small businesses a service by creating this mentor-protégé program and the recognition for larger businesses that engage with small business. It gives us added energy and incentive to continue the relationships and encourage others to do the same. URC is proud to be the first recipient. 3

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Professional Services Council

Service Contractor / October 2013 / 29

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

H.R. 472 SummaRy

STATUS

H.R. 505 SummaRy

STATUS

H.R. 548 SummaRy

STATUS

H.R. 624 SummaRy STATUS

H.R. 731 SummaRy STATUS

H.R. 735 SummaRy

STATUS

H.R. 882 SummaRy

STATUS

Professional Services Council

Major action taken since last issue

Bill became law since last issue

Federal Cost Reduction Act of 2013, Connolly (D-VA) Would encourage greater planning and transparency regarding the federal government’s data center consolidation initiative and would require greater detail on cost savings as a result of data center consolidation.

Referred to Armed Services, Oversight and Government Reform, and Transportation and Infrastructure Committees on 2/4/2013.

Balancing Act, Ellison (D-MN) Seeks to replace sequestration with other spending reductions and revenue-generating measures.

Includes a provision that would limit the allowable cost of contractor compensation to $200,000 per year.

Referred to Ways and Means, Budget, Oversight and Government Reform, Armed Services, Education and the Workforce, Transportation and Infrastructure, and Financial Services Committees on 2/5/2013.

Border Infrastructure and Jobs Act of 2013, Grijalva (D-AZ) Would prohibit an agency from awarding a contract related to border security unless 30 percent of the labor for the performance of the contract is performed by a local subcontractor, with exceptions.

Referred to Homeland Security, Ways and Means, Transportation and Infrastructure, Small Business, Oversight and Government Reform, Foreign Affairs, and Agriculture Committees on 2/6/2013.

Cyber Intelligence Sharing and Protection Act, Rogers (R-MI) Would establish cyber threat intelligence sharing procedures between the intelligence community and certain private sector entities.

Passed by the House (288-127) on 4/18/2013.

Protecting Americans Abroad Act, Radel (R-FL) Would allow the State Department to use best-value contracting in awarding local guard or protective service contracts in high-risk areas abroad under the diplomatic security program.

Referred to Foreign Affairs Committee on 2/14/2013. Related bills: H.R. 2848, S.980.

Federal Protective Service Improvement and Accountability Act of 2013, Thompson (D-MS) Would create within DHS the “Federal Protective Service (FPS) contract oversight force” to monitor contractors providing security services through the FPS and ensure that such contractors meet training and certification requirements. Would require the DHS to establish a one-year pilot program to “research the advantages” of converting guard positions at high-risk federal facilities protected by the FPS from contractors to federal employees.

Referred to Homeland Security and Transportation and Infrastructure Committees on 2/14/2013.

Contracting and Tax Accountability Act of 2013, Chaffetz (R-UT) Would propose for debarment any contractor with an unpaid, seriously delinquent tax debt.

Would require prospective contractors to certify that the contractor has no unpaid, seriously delinquent tax debt.

Passed by the House (407-0) on 4/15/2013.

Service Contractor / October 2013 / 31

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

H.R. 929 SummaRy

STATUS

H.R. 1109 SummaRy STATUS

H.R. 1163 SummaRy STATUS

H.R. 1232 SummaRy

STATUS

H.R. 1332 SummaRy STATUS

H.R. 1622 SummaRy

STATUS

H.R. 1688 SummaRy

STATUS

H.R. 1793 SummaRy

STATUS

Major action taken since last issue

Bill became law since last issue

Patriot Corporations of America Act of 2013, Schakowsky (D-IL) Would give preference in bid proposals to any entity that is a patriot corporation as defined by the Internal Revenue Code. Would reduce tax rates for patriot corporations by 5 percent of the taxable income of the corporation.

Referred to Ways and Means and Oversight and Government Reform Committees on 2/28/2013.

To amend title 10, United States Code, to require cost or price to the Federal Government be given at least equal importance as technical or other criteria in evaluating competitive proposals for defense contracts, Grayson (D-FL) Would require that cost or price be given at least equal importance as technical or other criteria in evaluating competitive proposals for defense contracts.

Referred to Armed Services Committee on 3/13/2013. Related bill: H.R. 1960.

Federal Information Security Amendments Act of 2013, Issa (R-CA) Seeks to enhance the governmentwide management, oversight, and coordination of information security risks, including contractor-related systems and information.

Passed the House (416-0) on 4/16/2013.

Federal Information Technology Acquisition Reform Act, Issa (R-CA) Seeks to reform federal government acquisition of information technology by providing additional authorities to agency CIOs, consolidating data centers, enhancing IT spending tracking and strategic sourcing, and creating assisted acquisition centers of excellence within the federal agencies.

Reported by Oversight and Government Reform Committee on 3/20/2013. Related bill: H.R. 1960.

American Jobs Matter Act of 2013, Bustos (D-IL) Would allow contracting officers to consider information regarding domestic employment before awarding a federal contract.

Referred to Oversight and Government Reform and Armed Services Committees on 3/21/2013.

Related bill: S. 1246 Fairness and Transparency in Contracting Act of 2013, Johnson (D-GA) Would exclude from the calculation of small business federal contracting participation any awards to a small business (or subsidiary thereof) that is publicly traded, or any business (or subsidiary thereof) with more than 50 percent non-u.S. citizen ownership.

Referred to Small Business and Oversight and Government Reform Committees on 4/18/2013.

Never Contract with the Enemy Act, Shea-Porter (D-NH) Would give a senior procurement executive, in coordination with a commander of a geographic combatant command, the authority to terminate for default or void a contract or restrict the future award to the contractor if its employees are identified as providing funds directly or indirectly to an enemy of the united States or a person or entity who is actively supporting an enemy of the united States.

Referred to Oversight and Government Reform and Armed Services Committees on 4/23/2013.

Related bill: S. 675.

Global Partnerships Act of 2013, Connolly (D-VA) Seeks to streamline and improve uSaID’s procurement process, to maximize transparency, efficiency, simplicity and speed. It also expresses the Congress’ preference for strong competition and a wide range of nonprofit and for-profit partners in development initiatives.

Referred to Foreign Affairs, Oversight and Government Reform, Rules, and Ways and Means Committees on 4/26/2013.

32 / Service Contractor / October 2013

Professional Services Council

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

H.R. 1960 SummaRy

STATUS

H.R. 1999 SummaRy

STATUS

H.R. 2008 SummaRy

STATUS

H.R. 2055 SummaRy

STATUS

H.R. 2061 SummaRy

STATUS

H.R. 2098 SummaRy

STATUS

H.R. 2216 SummaRy

STATUS

Professional Services Council

Major action taken since last issue

Bill became law since last issue

National Defense Authorization Act for Fiscal Year 2014, McKeon (R-CA) Contains a number of provisions affecting the contracting community including provisions regarding total workforce management, small business contracting, procurement of information technology and other areas.

Passed by the House (315-108) on 6/14/2013. Related bill: S. 1197 SAVE Act, Murphy (D-FL)

NEW

Would require OmB to issue government-wide savings goals for the strategic sourcing of goods and services by executive agencies and would require agency CIOs to report to OmB on agency efforts to identify and eliminate potentially duplicative information technology investment.

Referred to Oversight and Government Reform, Appropriations, Agriculture, Energy and Commerce, and Ways and Means Committees on 5/15/2013.

Stop Taxing American Assistance to Afghanistan Act, Welch (D-VT)

NEW

Would prohibit united States assistance for afghanistan unless the two governments enter into a bilateral agreement that provides that work performed in afghanistan by united States contractors is exempt from taxation by the government of afghanistan.

Referred to Foreign Affairs Committee on 5/15/2013.

Integrated Electronic Health Records (iEHR) for Military and Veterans Act, Roe (R-TN)

NEW

Would establish a program to award a prize and contract for the development of a fully integrated electronic health records program for use by the DoD and the Va. Referred to Armed Services and Veterans Affairs Committees on 5/20/2013.

Digital Accountability and Transparency Act of 2013, Issa (R-CA)

NEW

Would require the director of OmB to establish highly detailed, government-wide financial data standards for federal funds. Would require a review of existing financial reporting requirements to consolidate and eliminate duplicative reporting. Would establish a pilot program authorized to collect detailed reports from federal fund recipients and to identify barriers and burdens related to data collection related to federal spending.

Reported by Oversight and Government Affairs Committee on 5/22/2013. Related bill: S. 994.

Federal Prison Industries Competition in Contracting Act of 2013, Huizenga (R-MI)

NEW

Would amend federal criminal code provisions relating to Federal Prison Industries (FPI) to establish government-wide procurement policies for purchases from FPI based upon competitive procedures.

Referred to Judiciary Committee on 5/22/2013.

Military Construction and Veterans Affairs, and Related Agencies Appropriations Act, 2014, Culberson (R-TX)

NEW

Would appropriate approximately $73.3 billion in discretionary spending for military construction and the Department of Veterans affairs for fiscal year 2014. Includes contractingrelated provisions from previous years, and a new section that would prevent contracts from being awarded to contractors who have been convicted within the last three years or are presently indicted for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Passed by the House (421-4) on 6/4/2013.

Service Contractor / October 2013 / 33

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

H.R. 2217 SummaRy

STATUS

H.R. 2232 SummaRy STATUS

H.R. 2358 SummaRy STATUS

H.R. 2397 SummaRy

STATUS

H.R. 2411 SummaRy STATUS

H.R. 2434 SummaRy

STATUS

H.R. 2441 SummaRy

STATUS

H.R. 2444 SummaRy STATUS

Major action taken since last issue

Bill became law since last issue

Department of Homeland Security Appropriations Act, 2014, Carter (R-TX)

NEW

Would appropriate approximately $38.9 billion in discretionary spending for the Department of Homeland Security for fiscal year 2014. Would prevent contracts from being awarded to contractors who have been convicted within the last three years or are presently indicted for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Passed by the House (245-182) on 6/6/2013.

Make Every Small Business Count Act of 2013, Graves (R-MO)

NEW

Would allow certain prime contractors to count toward their small business subcontracting plan goals any small business subcontracting that occurs beyond the first tier.

Referred to Small Business Committee on 6/4/2013. Related bill: H.R. 1960.

Preference for Local Veteran Contractors Act, Cohen (D-TN)

NEW

Would give preference in bid proposals to contractors whose principle office or location is within a 60-mile radius of the facility of the Veterans affairs Department covered by such contract.

Referred to Veterans’ Affairs Committee on 6/13/2013.

Department of Defense Appropriations Act, 2014, Young (R-FL)

NEW

Would appropriate approximately $512.5 billion in “non-war” discretionary spending for the Department of Defense for fiscal year 2014. Includes contracting-related provisions from previous years, and a new section that would prevent contracts from being awarded to contractors who have been convicted within the last three years or are presently indicted for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Passed by the House (315-109) on 7/24/2013.

To prohibit the federal government from contracting with an entity that has NEW committed fraud or certain other crimes., Grayson (D-FL) Would prevent contracts from being awarded to contractors who have been convicted within the last three years for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Referred to Oversight and Government Reform Committee on 6/18/2013.

Civilian Contractors Engaged in Intelligence Activities Reduction Act of 2013, Jackson Lee (D-TX) Would mandate a 25 percent reduction in the number of contractors with top secret security clearances that are engaged in intelligence activities. Would direct the Director of National Intelligence to conduct a study to determine the extent to which contractors are used in the conduct of intelligence activities and the type of information that they can access.

Referred to Intelligence Committee on 6/19/2013.

NEW

Small Business Fairness Act of 2013, Lummis (R-WY)

NEW

Contains a number of provisions affecting the contracting community including provisions regarding total workforce management, small business contracting, procurement of information technology and other areas.

Referred to Small Business Committee on 6/19/2013. Related bill: S. 1190.

Commonsense Contractor Compensation Act of 2013, Tonko (D-NY)

NEW

Would limit the cap on allowable contractor compensation to the salary of the vice president, $230,700.

Referred to Oversight and Government and Armed Services Committees on 6/19/2013.

Related bill: H.R. 1960, S. 1192, S. 1197.

34 / Service Contractor / October 2013

Professional Services Council

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

H.R. 2609 SummaRy

STATUS

H.R. 2610 SummaRy

STATUS

H.R. 2687 SummaRy

STATUS

H.R. 2723 SummaRy STATUS

H.R. 2751 SummaRy STATUS

H.R. 2740 SummaRy

STATUS

H.R. 2787 SummaRy

STATUS

Professional Services Council

Major action taken since last issue

Bill became law since last issue

Energy and Water Development and Related Agencies Appropriations Act, 2014, Freylinghuysen (R-NJ) Would appropriate $30.4 billion in discretionary funding for covered agencies for fiscal year 2014. Includes contracting-related provisions from previous years, and a new section that would prevent contracts from being awarded to contractors who have been convicted within the last three years or are presently indicted for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Passed by the House (227-198) on 7/10/2013.

NEW

Transportation, Housing and Urban Development, and Related Agencies NEW Appropriations Act, 2014, Latham (R-IA) Would appropriate $44.1 billion in discretionary funding for covered agencies for fiscal year 2014.

Includes contracting-related provisions from previous years such as sections that would prohibit awarding a contract to a company that was convicted of a felony criminal violation or has any unpaid tax liabilities within the last two years. Exceptions may be made if the agency has considered suspension or debarment of the company and determined that further action is not necessary to protect the government’s interests.

Reported by Appropriations Committee on 7/2/2013.

National Aeronautics and Space Administration Authorization Act of 2013, Palazzo (R-MS) NEW Would authorize $16.9 billion in discretionary spending for NaSa for fiscal year 2014. Includes contracting-related provisions from previous years, and a new section that would prevent contracts from being awarded to contractors who have been convicted within the last three years or are presently indicted for crimes such as fraud, theft, bribery, making false statements, and tax evasion.

Reported by the Science, Space, and Technology Committee on 7/18/2013.

Embassy Security and Enhancement Act of 2013, Engel (D-NY)

NEW

Would allow the Secretary of State to award local guard contracts on the basis of best value. Would reduce the bid price of proposals received from american citizens and joint ventures by 10 percent.

Referred to Foreign Affairs and Oversight and Government Reform Committees on 7/18/2013.

Related bill: H.R. 2848.

Commonsense Construction Contracting Act of 2013, Hanna (R-NY)

NEW

Would prohibit the use of reverse auctions for contracts for design and construction services.

Referred to Small Business Committee on 7/19/2013.

Stop Outsourcing and Create American Jobs Act of 2013, McNerney (D-CA)

NEW

Would give a preference in awarding a contract to any potential contractor that has not engaged in outsourcing (i.e. relying on an overseas workforce to perform contract functions) during the previous fiscal year.

Referred to Ways and Means and Oversight and Government Reform Committees on 7/18/2013.

Commerce, Justice, Science, and Related Agencies Appropriations Act, 2014, Wolf (R-VA)

NEW

Would appropriate $47.4 billion in discretionary funding for covered agencies for fiscal year 2014.

Includes contracting-related provisions from previous years such as sections that would prohibit awarding a contract to a company that was convicted of a felony criminal violation or has any unpaid tax liabilities within the last two years. Exceptions may be made if the agency has considered suspension or debarment of the company and determined that further action is not necessary to protect the government’s interests.

Reported by Appropriations Committee on 7/23/2013.

Service Contractor / October 2013 / 35

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

H.R. 2848 SummaRy

STATUS

H.R. 2855 SummaRy

STATUS

H.R. 2912 SummaRy

STATUS

S. 6 SummaRy

STATUS

S. 21 SummaRy

STATUS

S. 169 SummaRy STATUS

S. 171 SummaRy

STATUS

Major action taken since last issue

Bill became law since last issue

Department of State Operations and Embassy Security Authorization Act, Fiscal Year 2014, Royce (R-CA)

NEW

Would allow the Department of State to use cost technical trade off source selection criteria for the selection of local guard services under the Diplomatic Security Program when such services are to be provided in an area that qualifies as a “high risk, high threat post”.

Reported by Foreign Affairs Committee on 8/1/2013. Related bill: H.R. 2723, S. 980.

Department of State, Foreign Operations, and Related Programs Appropriations Act, 2014, Granger (R-TX)

NEW

Would appropriate $34.1 billion in discretionary spending for the State Department, uSaID, and other foreign operations for fiscal year 2014. Would require that u.S. assistance to foreign governments be reduced by an amount equaling 200 percent of the total taxes on u.S. assistance assessed by that foreign government in the previous fiscal year.

Reported by Appropriations Committee on 7/30/2013.

Afghanistan Suspension and Debarment Reform Act, Chaffetz (R-UT)

NEW

Would give the Special Inspector General for afghanistan Reconstruction (SIGaR) suspension and debarment authority for foreign and afghan contractors operating in afghanistan when agencies fail to initiate a “timely” review of contractors identified by SIGaR. SIGaR would have the authority to make exceptions that permit a debarred or suspended contractor to be awarded new contracts in specific cases.

Referred to Foreign Affairs and Oversight and Government Reform Committees on 8/1/2013.

Putting Our Veterans Back to Work Act of 2013, Reid (D-NV) Would provide a preference to offerors for procurements over $25 million that employ veterans as at least 5 percent its workforce. Would also make a contractor’s repeated failure to comply with laws relating to employment and reemployment rights of members of the military as grounds for suspension or debarment.

Referred to Veterans’ Affairs Committee on 1/22/2013.

Cybersecurity and American Cyber Competitiveness Act of 2013, Rockefeller (D-WV) Encourages Congress to enact bipartisan cyber security legislation that would improve communication and collaboration between the government and the private sector.

Referred to Homeland Security and Governmental Affairs Committee on 1/22/2013.

Immigration Innovation Act of 2013 (I-Squared Act), Hatch (R-UT) Would raise the annual H1-B visa cap and would uncap the advanced degree exemption for employees with an advanced degree from a u.S. college or university.

Referred to Judiciary Committee on 1/29/2013.

Military Pay Continuation Act of 2013, M. Udall (D-CO) Would require DoD to continue to pay active members of the armed services, civilian DoD personnel and DoD contractor personnel who directly support the armed services during a government shutdown.

Referred to Appropriations Committee on 1/29/2013.

36 / Service Contractor / October 2013

Professional Services Council

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

S. 196 SummaRy

STATUS

S. 675 SummaRy

STATUS

S. 980 SummaRy

STATUS

S. 994 SummaRy

STATUS

S. 1190 SummaRy

STATUS

S. 1192 SummaRy STATUS

S. 1197 SummaRy STATUS

Professional Services Council

Major action taken since last issue

Bill became law since last issue

Assuring Contracting Equity, T. Udall (D-NM) Would raise the government-wide small business contracting goal to 25 percent from 23 percent and would also increase the goals of certain small business subcategories to 10 percent. Would also limit to two the number of small business subcategories in which agencies could take credit for small business performance.

Referred to Small Business and Entrepreneurship Committee on 1/31/2013.

Never Contract With the Enemy Act, Ayotte (R-NH) Would give a senior procurement executive, in coordination with a commander of a geographic combatant command, the authority to terminate for default or void a contract or restrict the future award to the contractor if its employees are identified as providing funds directly or indirectly to an enemy of the united States or a person or entity who is actively supporting an enemy of the united States.

Referred to Homeland Security and Governmental Affairs Committee on 4/9/2013. Related bill: H.R. 1688.

Chris Stevens, Sean Smith, Tyrone Woods, and Glen Doherty Embassy Security and Personnel Protection Act of 2013, Menendez (D-NJ)

NEW

Would allow the use of cost-technical tradeoff analysis as the basis for source selection criteria for local guard contacts under the Diplomatic Security Program and would provide a 10 percent price advantage for u.S. firms’ proposals for such work. Would also restrict the ability of interested parties to file a protest against a Department of State contract awarded under non-competitive procedures for an emergency security requirement.

Referred to Foreign Relations Committee on 5/16/2013. Related bills: H.R. 731, H.R. 2848.

Digital Accountability and Transparency Act of 2013, Warner (D-VA)

NEW

Would require the director of OmB to establish highly detailed, government-wide financial data standards for federal funds. Would require a review of existing financial reporting requirements to consolidate and eliminate duplicative reporting. Would establish a pilot program authorized to collect detailed reports from federal fund recipients and to identify barriers and burdens related to data collection related to federal spending.

Referred to Homeland Security and Governmental Affairs Committee on 5/21/2013. Related bill: H.R. 2061.

Small Business Fairness Act of 2013, Enzi (D-WY)

NEW

Would allow agencies to count toward their small business contracting goals any service-disabled veteran-owned, 8(a), women-owned, or HuBZone small businesses performing work through a teaming arrangement.

Referred to Small Business Committee on 6/19/2013. Related bill: H.R. 2441.

Commonsense Contractor Compensation Act of 2013, Boxer (D-CA)

NEW

Would limit the cap on allowable contractor compensation to the salary of the vice president, $230,700.

Referred to Homeland Security and Governmental Affairs Committee on 6/19/2013. Related bill: H.R. 1960, H.R. 2444, S. 1197.

National Defense Authorization Act for Fiscal Year 2014, Levin (D-MI)

NEW

Contains a number of provisions affecting the contracting community including a provision that would limit the cap on allowable contractor compensation to $487,325.

Reported by Armed Services Committee on 6/14/2013. Related bill: H.R. 1960.

Service Contractor / October 2013 / 37

Bill Tracker: 113th Congress-First Session (2013) NEW

Newly introduced since last issue

S. 1246 SummaRy STATUS

S. 1276 SummaRy

STATUS

S. 1284 SummaRy

STATUS

S. 1371 SummaRy

STATUS

Major action taken since last issue

Bill became law since last issue

American Jobs Matter Act of 2013, Murphy (D-CT)

NEW

Would allow contracting officers to consider information regarding domestic employment before awarding a federal contract.

Referred to Armed Services Committee on 6/27/2013. Related bill: H.R. 1332.

Security Clearance Oversight and Reform Enhancement (SCORE) Act, Tester (D-MT)

NEW

Would allow the inspector general of OPm to use money from the revolving fund for audits, investigations and oversight of security clearance process. Would require the Director of National Intelligence to submit guidance to all federal agencies about which positions require the possession of a security clearance and to review those classifications as duties change.

Reported by Homeland Security and Governmental Affairs Committee on 8/1/2013.

Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2014, Harkin (D-IA)

NEW

Would provide clarification regarding the treatment of HHS contracts for severable services. In addition to providing broad appropriations for the Departments of Labor and HHS, this bill specifically provides funding for DoL’s Wage and Hour Division and the Office of Federal Contract Compliance Programs.

Reported by Appropriations Committee on 7/11/2013.

Financial Services and General Government Appropriations Act, 2014, Udall (D-NM)

NEW

Would require civilian agencies to insource “closely associated with inherently governmental functions” to the maximum extent practicable. Would also reduce the allowable compensation cap for contractor employees to a level no greater than the president’s salary ($400,000).

Reported by Appropriations Committee on 7/25/2013.

38 / Service Contractor / October 2013

Professional Services Council

Wyle Tackles the Tough Jobs

Wyle’s team of engineers, scientists and flight crew tackle the tough jobs, such as completing the first airborne refueling of the Joint Strike Fighter F-35B short takeoff/vertical landing variant.

With 16 years of dedicated support for the JSF program, Wyle provides engineering and program management support; foreign military sales management; flight test support; threat reprogramming, analysis and assessments; and basing and ship suitability services. For more information, go to www.wyle.com

Experts for the 21st Century

Policy Spotlight

It’s Quadrennial Review Season.

Is Anyone Watching?

by Alan Chvotkin, PSC Executive Vice President & Counsel

T

40 / Service Contractor / October 2013

diplomacy and the roles that development played in contributing to the success of diplomacy, while subsuming USAID and its responsibilities within the overall State Department review structure. Now USAID has reestablished its own policy office, which should strengthen that agency’s engagement in and contribution to the next QDDR round. With the shift of responsibility in Afghanistan from the military to the Department of State, the continued world-wide terrorist threats and the significant budget constraints imposed by Congress on many components of diplomacy and development, the fundamental building blocks that underpinned the 2010 edition of the QDDR have changed significantly.

Key Questions to be Addressed While the issues the agencies will address in their quadrennial reviews are critical, there are five key questions that must also be addressed in each.

First, how do the reviews address the role of acquisition as part of the departments’ core responsibilities? DoD spends over $200 billion annually on the purchase of goods and services, funded primarily through the operations and maintenance accounts that represent almost 40 percent of the president’s fiscal year 2013 defense budget.

In Homeland Security, almost a third of their fiscal year 2013 budget will be spent on the purchase of service. USAID Professional Services Council

Photo: sd619/istockphoto.com

hree federal departments are already engaged in major internal reviews of their core responsibilities. With the significant changes that have occurred since the last round of reviews, all three departments face significant challenges to make sure that these efforts produce credible, actionable and executable results. Every agency would be well-advised to undertake a similar, even if less-formalized, review. Ideally, these strategy decisions should drive agency priorities and resources but there are too many reasons to doubt that the fiscal and political environment will support that approach.

The granddaddy of the quadrennial reviews is the Defense Department’s Quadrennial Defense Review (QDR). Required by law, and conducted since 1997, all components of DoD are engaged to assess the national defense strategy in light of the new fiscal realities and the new threats. The withdrawals from Iraq and Afghanistan, along with the president’s 2012 Defense Strategic Guidance, all present significantly changed military and defense circumstances, as does the addition of cybersecurity to DoD’s four pre-existing military domains of air, land, sea and space. The 2011 Budget Control Act and the imposition of the fiscal year 2013 sequestration pushed the limits of the department’s current budgetary resources and may do so for the coming decade. DoD’s July 31 release of the Strategic Choices and Management Review (SCMR) presented a set of options based on the DoD’s current spending plan and the available and planned capacity and capabilities. It also recommended a set of management efficiencies, overhead reductions and compensation changes that will inform, and likely constrain, the range of policy options available under the QDR. The Department of Homeland Security also has a statutory mandate to undertake a Quadrennial Homeland Security Review (QHSR) that will similarly engage all DHS components.

This will be only the second cycle for this formal review that is led by the DHS Office of Policy, which Congress tasked with leading this initiative. There has already been extensive consultations within the department over the past several months and outreach to key private sector stakeholders is now underway. Yet this department also facing significant budget challenges and rapid shifts in its major areas of responsibility, from cybersecurity to immigration to securing all modes of transportation.

However, in several of these areas, DHS is not in sole control over the activities or its solutions.

Finally, the State Department should be initiating its Quadrennial Diplomatic and Development Review (QDDR).

Launched administratively by Secretary of State Clinton in 2009, that first review focused heavily on State’s action on

said that, in fiscal year 2012, 80 percent of its available budget resources were spent through acquisitions (contracts) and assistance (grants). Yet none of these departments and agencies view the acquisition process as a core agency function. Also implicit in this question is the agency’s commitment to the size and capabilities of its acquisition workforce.

A second issue is the role of contractors in contributing to that mission success. Here again, senior leaders often acknowledge the critical role of contractors in fulfilling the agencies’ needs but they rarely address head-on the appropriate role of contractors in the agency. Whether it is in disaster recovery or contingency operations or development assistance, agencies should be clear about the role of contractors and plan for their use accordingly. As the Special Inspector General for Iraq Reconstruction noted in his final “lessons learned,” in the future no federal agency should be surprised at or unprepared for the role of contractors in executing the agencies’ work.

Third, what approach will the departments and agencies take to cross-agency versus intra-agency coordination and cooperation? DoD and the Veterans Administration are codependent on solving the challenges of electronic medical and service records for veterans. Many agencies are relying on the services provided to them by other agencies—from payroll to information technology—to support their day-to-day business operations. This cross-agency reliance must increase as resources diminish and agencies focus their limited funds and personnel on executing primary missions. A corollary is the extent to

which agencies will embrace the use of GSA and other agency acquisition vehicles, adopt strategic sourcing initiatives, and leverage others’ acquisition and technical resources.

Fourth, how will agencies foster and then harness existing technology and entice new technologies to be part of the solution to current or future mission challenges. It is not enough to ensure that the acquisition system can accommodate new technology and new solutions to be offered by vendors, although it is certainly important that such minimal flexibilities exist.

Finally, in light of the post-Snowden, post-Benghazi, post-Boston Marathon events, what is the role of intelligence, from gathering it to using it, whether foreign or domestic? All agencies gather and use intelligence, including through formal offices and primary assigned responsibilities. But the nature of the threats and the capabilities to collect and use intelligence opens significant policy, privacy and political issues that can no longer be ignored.

These quadrennial reviews offer unique opportunities for agencies, Congress and all stakeholders to engage in meaningful dialogue relating to core responsibilities and implementation.

If taken seriously and done properly, they should be more than an every-four-year “check the box” exercise. But to be valuable, agencies have to take on the tough questions and not use these reviews as just another budget justification document or marketing piece. PSC stands ready to leverage the strengths and experiences of our membership to substantively contribute to each of these reviews. 3

Partner Network CONSULTING PARTNER

Professional Services Council

Service Contractor / October 2013 / 41

Committee Corner:

The PSC Council of International Development Companies

by Paul foldi, PSC Director of International Development Affairs

I

n March, the PSC International Development Task Force (IDTF) merged with the Coalition of International Development Companies to form a new, dynamic, sustainable advocacy platform within PSC for U.S. development companies—the Council of International Development Companies.

The CIDC sustains the thought leadership and high-level dialogue with the U.S. Agency for International Development (USAID) launched by the Coalition, while continuing the monthly committee meetings and the core IDTF functions to inform and advocate on contracting, regulatory, legislative, business process, and business development issues. The CIDC educates audiences on the vital role our companies play in achieving accountable, transparent and sustainable development results in support of U.S. national security, economic, and humanitarian goals overseas.

Since its establishment in March, it has hosted an impressive array of top USAID officials at its monthly meetings, including Deputy USAID Administrator Don Steinberg; Steve Feldman, director of USAID’s Office of Policy, Bureau for Policy, Planning

and Learning (PPL); USAID Deputy Inspector General Michael Carroll, who was later nominated to be the USAID IG; and Eric Postel, assistant administrator for the Bureau of Economic Growth, Education and Environment.

In addition to the regular committee meetings, the Council has published a white paper highlighting the use of science and technology in international development, which was presented directly to USAID Administrator Raj Shah. The CIDC also met with Rep. Gerry Connolly, D-Va., the chief sponsor of the “Global Partnerships Act of 2013,” H.R. 1793, which PSC believes will help ensure that U.S. development policy puts to work the best that America has to offer.

The high-tempo of operations by the CIDC strengthens PSC role at the forefront of the international development policy debate and makes PSC a stronger advocate for international development issues.

For more information about the CIDC, or to join, visit the “Committees and Task Forces” page of the PSC website. 3

Service Contract Act Training

S C A 42 / Service Contractor / October 2013

Complying with the Service Contract Act (SCA) is one of the most technically challenging aspects of administering a federal service contract. The SCA governs pay rates for many service occupations—get it wrong, and your company can face loss of reimbursement or even debarment. But getting it right is no small feat.

To comply with the SCA, the entire contracting operation—from executive leadership to business developer, from proposal writer to accountant, from project manager to human resources specialist —needs to be conversant with the requirements of the act.

PSC is pleased to offer the only SCA training conducted in partnership with the U.S. Department of Labor, Wage & Hour Division.

Upcoming sessions held at the NRECA Conference Center 4301 Wilson Blvd., Arlington, VA:

October 23-24, 2013 Visit www.pscouncil.org for more details and registration.

Professional Services Council

MEMBER NEWS Mergers and Acquisitions:

New Appointments and Hires:

PAE to Acquire CSC Applied Technology Division

Vistronix’s Carl Buffington Named Lead Co-Chair of the Technology Roadmap Subgroup of NIST’s Big Data Working Group

PAE announced July 19 that it has acquired Computer Sciences Corporation’s Applied Technology Division. The Applied Technology Division provides aviation maintenance, base operations and maintenance, test and training range, and space range support at critical U.S. government installations. The acquisition introduces military and space testing and training services into PAE’s portfolio and increases the number of PAE clients in the federal services market.

Social & Scientific Systems Acquires a Portion of SRA’s Health Sciences Research Business

Social & Scientific Systems acquired SRA’s Health Sciences Research Group in July. The group is focused on the design, execution and analysis of public health studies; epidemiology; survey research and evaluation; and statistics and bioinformatics. The group has provided support to a variety of government agencies, including the Department of Health and Human Services and the Department of Veterans Affairs.

NeoSystems Acquires MoCo IT

NeoSystems Corp., a strategic back office service provider, has acquired MoCo IT, a full-scope information technology firm that designs, implements, and manages on premise infrastructure and software solutions. Andy Hoskins, founder and President of MoCo IT will serve as vice president of managed information technology services at NeoSystems.

By acquiring MoCo IT, NeoSystems is deepening its IT expertise, which already includes delivering technical services for the Deltek and IBM Cognos product suites, as well as cloud-based hosting. These services are complimentary to the accounting and human capital management expertise NeoSystems already provides

Kevin Beverly

Vistronix’s Carl Buffington, an enterprise solutions architect, has been named the Lead Co-Chair of the Technology Roadmap subgroup of the National Institute of Standards and Technology’s (NIST) Big Data Working Group (NBD-WG), the company announced on August 12. The NBD-WG aims to develop definitions, taxonomies, reference architectures, and a technology roadmap that will enable breakthrough discoveries and innovation by advancing measurement science, standards, and technology in ways that enhance economic security and improve quality of life. Buffington is also the director of Vistronix’s Software Center of Excellence, which is dedicated to developing capabilities and best practice processes in providing technical leadership in emerging technologies such as cloud, mobile and big data. The technology roadmap will define and prioritize requirements for interoperability, reusability, and extendibility for big data analytic techniques and technology infrastructure in order to support secure and effective adoption of big data. Now that the co-chairs for the subgroups have been named, they will help draft the subgroup charters. All of the subgroups will be contributing to the big data technology roadmap. The target date for completion of an initial draft is September 27.

Vistronix Names Ronald C. Jones Chief Strategy Officer and Vice Chair of Board of Directors

Vistronix announced that Ronald C. Jones has joined the company as chief strategy officer and vice chair of the Board of Directors. Jones has over 30 years of experience working in the national security market and was most recently the executive vice president for strategy and corporate development

continued from pg. 7

Second, find the right implementation balance. Effectively facilitating policy development and appropriate implementation requires active engagement among executive sponsors, business group leaders and other company stakeholders. In an organization with a diverse portfolio, failure to garner support across business units can lead to confusion, delay, gaps or mistakes.

Third, you must gain your client’s recognition of the value of action. Some government clients are naïve about the risk and often disregard the costs associated with increasing the levels of security required for their programs. The lack of coordination between government program managers and their own contracts organizations has great potential to put implementing firms at risk. It is important to communicate with government program and contracting officers as you work to develop and implement specific solutions.

Professional Services Council

Companies need to be concerned with developing solutions that fit the program application. Cyber security solutions can become very expensive if they are not carefully balanced with the contractual requirements. Therefore, develop a sound implementation plan and clearly communicate the strategies of that plan to all employees, reinforcing the importance of building a culture of security awareness at the grass roots level. Do not wait for perfection or try to tackle everything at once.

Instead, start by determining what systems are most critical and that expose the greatest risk for loss or disclosure and prioritize them for attention. Actually categorize all of your data into levels of confidentiality that require protection by your customer or your company and assume that any data that has not been actively categorized should be treated as confidential until it has been correctly categorized. Finally, this analysis is never complete; it requires continuous monitoring and adjustment. 3 Service Contractor / October 2013 / 43

MEMBER NEWS at Sotera Defense Solutions. The hiring of Jones comes on the heels of the acquisition of Technology Associates International Corporation financed in part by Enlightenment Capital, an investment firm providing capital solutions to businesses that protect critical infrastructure, innovate aerospace solutions and safeguard national security. Other key management moves at Vistronix include the promotion of John Hassoun to corporate president, Kevin Wideman to president of the Federal Civil Business Unit, and Ty Schieber to president of the Defense Business Unit. Vistronix also hired and named Tom Lydon as senior vice president for business development and Ted Timberlake as the corporate general counsel.

PAE Appoints Paul Cofoni as Executive Chairman of the Board

PAE has appointed Paul Cofoni as the executive chairman of its Board of Directors, where he will focus on expanding PAE’s current portfolio and guiding the company’s growth strategy. Prior to joining PAE in June, Cofoni was president and CEO of CACI International and PSC chairman of the Board through 2012.

Ryan C. Berry and Lesley Whitcomb Fierst Join Troutman Sanders’ Tysons Corner, Virginia Office

Troutman Sanders LLP announced in July that government contracts and commercial litigation lawyers Ryan C. Berry and Lesley Whitcomb Fierst have joined the firm as partners in its Tysons Corner, Virginia office. Both Berry and Fierst come to Troutman Sanders from Womble Carlyle Sandridge & Rice LLP. Berry’s litigation practice is focused primarily on the representation of defense contractors in contract disputes, employment related issues and foreign national disputes. Fierst represents corporate and individual clients in business and financial services litigation, as well as white collar criminal matters.

Integrity Founders Mary Beth and Christopher Romani (center) receive a Fantastic 50 award from U.S. Sen. Tim Kaine (left).

Integrity provides major systems acquisition and program management support services to federal clients. The Virginia Fantastic 50 is the only statewide awards program to rank leading businesses across the state in all types of industries.

Companies must be privately held with headquarters in Virginia, and demonstrate positive year-over-year revenue growth and net income when judged on four-year sales revenue history.

Integrity Management Consulting Receives Outstanding Corporate Citizenship Award

Integrity Management Consulting, Inc. (Integrity) was presented with a 2013 Outstanding Corporate Citizenship Award by the Fairfax County Chamber of Commerce in June. The Outstanding Corporate Citizenship Awards honor

Sabre Welcomes New Employees

In July, Sabre Systems welcomed two new employees to its team. Kalment “Kal” Leikach, former deputy commander of the Naval Air Systems Command (NAVAIR), serves as the senior strategic advisory in Sabre’s Mid-Atlantic region.

Dennis DePriest, formerly of ASEC, is senior executive director of Sabre’s operations relating to NAVAIR and Naval Air Warfare Center Aircraft Division (NAWCAD) Maritime Aircraft programs.

Awards, Honors and Other News: Integrity Management Consulting named Virginia’s Fastest Growing Company

The Virginia Chamber of Commerce has ranked Integrity Management Consulting, Inc. No. 1 on its 2013 list of “Fantastic 50” fastest growing companies in the state.

Integrity received the Virginia Vanguard Award for Highest Overall Growth in April. Integrity moved up to the top spot after being ranked second on the list in 2012 when it received the Vanguard Service Award.

44 / Service Contractor / October 2013

Christopher and Mary Beth Romani, co-founders of Integrity Management Consulting.

Professional Services Council

MEMBER NEWS individuals, companies and non-profits for above-and-beyond business leadership and corporate social responsibility.

In 2012, Integrity donated more than $60,000 to Homestretch, Jubilee Jobs, the Catalogue for Philanthropy, and Friendship Place to house, feed and educate families rebuilding their lives. Staff also contributed thousands of dollars worth of goods, financial support and volunteer hours to the homeless, veterans, the disabled and the hungry. Their donations helped create the new KidStretch early child education program, provided school clothing for nine children, as well as $3,000 in holiday meals and gifts for 13 struggling mothers and children. Integrity has a Community Impact Group led by staff, a Kids Impact program for children of staff, and a unique 5x$500 program, which awards $500 to employee-chosen nonprofits when an employee enlists four others to volunteer.

Its employee-fueled giving also benefits nonprofits in the Fort Worth, Texas and Kansas City, Mo. areas, where Integrity has field offices. Integrity’s efforts are focused on Health and Human Services challenges, providing both basic needs and resources that enable families to achieve long-term sustainability.

JBS Employee Wins Child Welfare Award

JBS Child Welfare Specialist Angela Adams received the Mark Hardin Award for Child Welfare Legal Scholarship and Systems Change in a ceremony at the Center on Children and the Law Conference in Washington, D.C., on July 12. The award was created in 2011 by the American Bar Association’s Center on Children and the Law. It is named for Mark Hardin, the Center’s former director of child welfare, who has long been recognized as an early innovator in the field. Angela lives and works in New Mexico and has more than 30 years of experience working to improve the lives of children and families through her focus on law, policy, and practice. As a national Child Welfare Specialist for JBS’ Child Welfare Reviews Project, she supports the Children’s Bureau in reviewing and monitoring child welfare programs.

Sabre’s Ives Honored for Exemplary Service at Annual Heritage Awards

Glen Ives, group vice president for Sabre’s mid-Atlantic region, was one of three individuals honored with the Heritage Award by Leadership Southern Maryland. Ives received the award for his service in Maryland’s St. Mary’s County. Ives was honored for his work on numerous boards, including the Southern Maryland Navy Alliance, The Patuxent Partnership, Annmarie Garden’s Ann’s Circle, Inc., College of Southern Maryland Foundation and the Board of Trustees for St. Mary’s College of Maryland. He is also Honorary Chairman of the United Way, Christmas in April and the Special Olympics.

Sabre Awards STEM Scholarships to High School Seniors

Sabre has awarded six $1,000 scholarships to high school seniors who plan to pursue degrees in Science, Technology, Engineering and Mathematics (STEM). The recipients were Amanda Carroll of Prince Frederick, Md.; Katlyn Lyon of St. Mary’s County, Md.; Sarah Morris of Jarrettsville, Md.; Jack Swab of Fallston, Md.; Ye Tao of Alexandria, Va.; and Heather Zezzo of Jamison, Pa.

NeoSystems Sponsors Major Pro Tennis Tournament

NeoSystems was an official sponsor of the Citi Open, a professional tennis tournament that benefits the Washington Tennis and Education Foundation. NeoSystems’ sponsorship included bringing torunament statistics to viewers and attendees during the nine days of play from July 27 through August 4 at the William H.G. Fitzgerald Tennis Center in Washington, D.C. The Citi Open is part of the Association of Tennis Professional (ATP) and Women’s Tennis Association (WTA) tours.

Have a story for Service Contractor’s Member News section?

E-mail Bryan Bowman at bowman@pscouncil.org.

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http://www.youtube.com/user/ThePSCouncil

Gary Slack

continued from pg. 7

to our customers. We are always seeking opportunities to mold security into our culture.

My advice to other companies is to recognize there in no “one size fits all” solution. Don’t get enamored with one solution and think you are done. Remain vigilant in keeping up with the emerging threats as well as emerging technologies.

Finally communicate regularly with your employee population on the importance of keeping devices and data secure. If the leadership makes this a priority so will your workforce. 3 Professional Services Council

Government Affairs, Market Intelligence, Strategic Consulting & Federal Marketing 202.719.9999 • www.monumentpolicy.com Service Contractor / October 2013 / 45

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PSC: SCENE & HEARD 1

PSC’s Stan Soloway (left) moderates a panel on the business case for future GWACs and MACs at the 2013 MAGIC Conference on July 11. The panel featured, from left: former OFPP Administrator Dan Gordon, associate dean for government procurement law studies at George Washington University; Bill Woods, director of acquisition and sourcing management for GAO; and Richard Ginman, director of DoD’s Defense Procurement & Acquisition Policy office.

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Sen. Mark Warner, D-Va., address the June 12 PSC Board of Directors meeting.

Taylor Boon of The Boon Group (left), Dan Graham of Wiley Rein (center), and David Metzger of Arnold & Porter (right) address the questions contractors must consider as they implement the Affordable Care Act during a July 25 PSC event cosponsored by the Boon Group, Wiley Rein and Arnold & Porter.

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PSC’s Stan Soloway (center) receives the Herbert Roback Memorial Award during a ceremony at the NCMA World Congress held in Nashville, Tenn. in July. Photo courtesy of NCMA.

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PSC’s Stan Soloway testifies before the House Small Business Committee on June 13 about the effects of strategic souring efforts on small businesses.

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PSC’s Alan Chvotkin (second from right) participates in a panel discussion about international public procurement at the NCMA World Congress in Nashville, Tenn. in July. Photo courtesy of NCMA.

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PSC Vice Chair Ellen Glover of ICF presents the audit report at the June 12 PSC Board of Directors Meeting.

Professional Services Council

Ready for anything.

ConsultWithIntegrity.com

703.349.3394

Acquisition and program management challenges come in different shapes and sizes. There is no one-size-fits-all solution. That’s why Integrity offers flexible tools and a spectrum of support services. Our experienced and versatile teams are committed to your mission. Rely on a trusted partner for the exact support you need precisely when and where you need it when you work … with INTEGRITY.

© 2013 Integrity Management Consulting, Inc. All rights reserved.

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Growth turnarounds

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