PSC's Service Contractor Magazine - March 2013 by Professional Services Council

March 2013 / The Voice of the Government Services Industry

MovinG IT Acquisition Forward

ALso inside: 7

GAPs in federal IT acquisition

Q&A with darrell issa & Tom Carper

The Presidentâ&#x20AC;&#x2122;s Cybersecurity EO

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March 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 Bethany Egan Manager, Council of International Development Companies egan@pscouncil.org Larry Halloran Director, PSC International Development Initiative halloran@pscouncil.org Karen L. Holmes Office Manager/Receptionist holmes@pscouncil.org Roger Jordan Vice President, Government Relations jordan@pscouncil.org Charlene Loper Membership Associate loper@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 Kristine Thomas Executive Assistant thomas@pscouncil.org

The Voice of the Government Services Industry

12 Something’s Better than Nothing:

The President’s Cybersecurity Executive Order

Sounding Board:

Gaps in Federal IT Acquisition

PPPs in DEvelopment

Coming clean on PPPs

improving government performance

4 President’s Corner / 9 Q&A with Darrell Issa and Tom Carper / 29 Bill Tracker / 32 Committee Corner / 33 Member News / Inside Back Cover PSC Scene and Heard

For advertising or to submit articles or items for the Member News section, contact: Bryan Bowman Cover Photo Illustration: Ana Eastep Base image: HadelProductions/istockphoto.com

Professional Services Council

Service Contractor / March 2013 / 3

PRESIDENT ’S CORNER

s we went to press with this issue of Service Contractor, Washington had finally succumbed to sequestration.

The implementation of the $85 billion sequester has exacerbated uncertainty and instability in government operations. The expiration of the current continuing resolution and the coming battle over another extension of the debt ceiling will only add to the risks for contractors. The likelihood of the cloud of uncertainty being lifted anytime soon remains very low. Nonetheless, the government continues to operate, as it must. And agencies, along with their contractors, continue to search for new and better ways to achieve critical missions in increasingly efficient ways. As such, attention to critical management issues is also beginning to grow and includes new and significant legislation in both houses of Congress focused on information technology acquisition, the growth of the government’s strategic sourcing initiative, and more. On the industry side, more and more attention is also being paid to similar questions. In this issue of Service Contractor, we explore a number of them. We are delighted to feature an interview with Sen. Tom Carper, D-Del., chairman of the Senate Homeland Security and Governmental Affairs Committee and Rep. Darrell Issa, R-Calif., chairman of the House Oversight and Government Reform Committee. These two leaders are the primary authors of the emerging IT acquisition legislation in their respective chambers. In the same vein, in our Sounding Board feature, two members of the PSC Board of Directors—Lockheed Martin’s Linda Gooden and Dell’s George Newstrom—offer their perspectives on reforms that are needed. On a personal note, I want to take this opportunity to thank Linda for her long and steady support of PSC as she steps down from her role at Lockheed. She’s been a great partner to PSC for many years.

4 / Service Contractor / March 2013

The management and innovation theme continues as Deloitte’s Robin Lineberger and ICF’s Ellen Glover, the co-chairs of the new PSC Commission on Efficient and Innovative Services Outcomes, explain the commission’s genesis, focus and objectives. And PSC’s Alan Chvotkin explores the complexities and questions emerging around the use of “strategic sourcing” for professional services, with a particular look at the upcoming OASIS procurement. But the question of improving government performance, of doing more with less, has other facets. Thus, we asked DAI’s Kristi Ragan to share her thoughts on the use and efficacy of public private partnerships (PPPs) in international development. PSC has long supported the expanded use of PPPs across the government and, in the aftermath of a special PSC program on PPPs and development, Kristi shares some important insights. We also want to thank Scott Hommer and Keir Bancroft of Venable for their thoughtful and informative analysis of the risks associated with the government’s new cybersecurity executive order and policies. This is an issue that affects companies across the sector and is one to which we must continue to focus our attention. This is indeed a robust edition of our magazine. We hope you find it valuable and, as always, invite your comments and suggestions. Thanks, as always, for your support of PSC.

Stan Soloway President & CEO

Professional Services Council

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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.

Balancing Innovation and cost in

IT Acquisition Reform QUESTION: As Congress considers new information technology acquisition reforms, what are the three or four most important things you believe need to be addressed?

I Linda Gooden

Executive Vice President Lockheed Martin Information Systems & Global Solutions

nformation technology is among the most powerful and pervasive tools in use by the federal government. It is an essential enabler for missions as diverse as sending out 62 million Social Security checks every month, identifying genetic markers for cancer treatment, and providing satellite imagery to warfighters in Afghanistan. It is also among the most dynamic tools at the government’s disposal. There are now over 2,000 U.S. government accounts on 22 social media platforms, the FAA recently granted a major airline approval to use iPads as flight manuals in its cockpits, and 18,000 Immigration and Customs Enforcement employees are replacing their BlackBerries with more advanced smartphones, like iPhones. These dynamics make acquiring IT a continuously evolving challenge for the government. Rep. Darrell Issa, R-Calif., is sponsoring the Federal Information Technology Acquisition Reform Act (FITARA) to address some parts of that challenge, and there are ongoing initiatives across the government designed to make better, smarter use of information technology. I believe these efforts will prove most valuable if three key aspects of the challenge are kept in focus:

People By far the biggest driver in the success of an IT acquisition are the people who make it happen both in the acquisition community and in CIO and program offices. The acquisition workforce continued on page 21

header photo: adventtr / istockphoto.com

George Newstrom Vice President and General Manager, Dell Services, US Public Sector

s Congress considers new information technology acquisition reforms, I would recommend considering the following. Federal acquisition reform started out with honorable intentions—efficient competition, streamlined approval procedures and effective competitive range determination. Over the past 17 years, we have seen a lot of improvements in the way information technology procurements are conducted, but we have also witnessed disturbing trends that threaten to remove virtually all value-based evaluation of competitive proposals. Even worse is the fact that many of these overlooked proposals introduce innovative technology and processes that could improve government operations and save tax dollars in the long run. The increased popularity of “lowest price, technically acceptable (LPTA)” evaluation methods for federal acquisition may be more expeditious from a contracting perspective, but it is not the best alternative when considering benefit-driven, life cycle cost savings and innovative technology solutions. One example that is very relevant at this time of year is seeking a consultant to work on your taxes. Most people look for the best qualified person with proven results and pay a premium for their expertise. On the other hand, when purchasing a TV (due to the commodity nature of the acquisition) we may not use the same logic. LPTA can be successful when standard functional requirements have been defined. Unfortunately, many information technology procurements today are not simple commodity purchases. continued on page 22

Professional Services Council

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Q&A

with Rep. Darrell Issa and Sen. Tom Carper

(R-Calif.) Chairman of the House Oversight and Government Reform Committee Service Contractor (SC): The Clinger-Cohen Act of 1996 is considered to be the last major IT management and acquisition reform legislation. What has changed over the past 17 years that necessitates new reforms?

Darrell Issa (DI): The basic question is not “what has

changed over the past 17 years?” The basic question is “why haven’t things changed over the last 17 years?” The Committee on Oversight and Government Reform has a long and distinguished record of oversight regarding IT acquisition and management. Under former Chairman Tom Davis, this committee held numerous hearings regarding failing IT initiatives and problems. But the problems he and my other predecessors sought to grapple with, including Chairman Jack Brooks and Chairman William Clinger, continue to the present day. GAO says that IT spending exceeded $600 billion dollars over the last 10 years, and daily we are reading about major problems and waste in these critical investments. Furthermore, we are seeing major tectonic shifts in the IT industry itself, for instance, transition to the cloud, software as a service and the need for data center consolidation. The disjointed fashion in which the government acquires its IT needs is out of synch with these industry trends toward consolidation.

(D-Del.) Chairman of the Senate Homeland Security and Governmental Affairs Committee According to the study conducted by the Technology CEO Council, which is comprised of CEOs of leading IT firms, the federal government can save 20-30 percent, or $16-$24 billion of its $80 billion annual IT spending, by reducing IT overhead, consolidating data centers, eliminating redundant networks, and standardizing applications. Even greater savings are possible by streamlining government supply chains and moving to shared services for common mission-support or back-office activities, such as finance, human resources, and procurement systems.

Tom Carper (TC): The Clinger-Cohen Act was passed almost two decades ago, and since then we have seen tremendous changes in information technology. In 1996, a Blackberry was a fruit, a tweet was something that only birds did, and Google (googol) was just a really big number. Today, we live in a world of smartphones and tablets, social media and the cloud. One effect of these powerful new technologies has been a fundamental change in the American public’s expectations on how they interact with government and how the government should be run. Unfortunately, our federal government has not kept pace with these changes and is strapped with outdated and underperforming technology. What we in Congress need to do is to work with the executive branch to figure out which agencies continued on page 10

Professional Services Council

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are successfully using information technology (IT) to complete their missions and to better serve the American public, and apply those best practices throughout the federal government while simultaneously weeding out practices that aren’t working.

SC: What are the most important elements of any IT acquisition reform? How do you plan to address these elements in legislation?

DI:

The most important elements in IT reform are to consolidate accountability and authority and to synchronize the government acquisition and deployment cycle for IT with private sector trends, such as the growth of cloud computing and software as a service. We must acknowledge the useful role that open source can play in government IT procurements. Most importantly, we must eliminate wasteful spending and drive broader transparency and accountability for failed system developments. We do this by committing to open standards, enhancing CIO authorities and accountability, and by restructuring IT acquisitions to consolidate demand, enable basic spending analysis, and implement solutions and shared services for common agency requirements.

TC:

There are a number of ways that Congress can promote IT acquisition reform—for example, by supporting the development of skilled IT acquisition professionals and program managers, encouraging use of modular development, and insisting that agencies use strategic sourcing where appropriate. Also, projects should not be launched without careful planning and assessment of risks and agencies’ performance must continuously—and accurately—track cost, schedule and performance information so that problems are spotted early on and addressed appropriately. Federal agencies must also continue to take an enterprise-wide look at their IT investments with an eye towards minimizing duplication among those investments. For example, we need to move past the era of one agency purchasing and operating a dozen different email systems.

SC: Your counterparts in the other chamber have also developed an IT reform plan. What are your thoughts on that bill? How might you address some of those proposals?

TC:

I want to commend Chairman Issa on the inclusive process that he and his staff have undertaken in coming up with a draft IT reform bill. I have introduced an IT Management Reform bill in the last two sessions of Congress and I am considering reintroducing a similar bill in this Congress. My legislation would improve Congress’ ability to monitor the federal government’s IT portfolio and would require troubled projects be fixed or terminated in a timely manner. There are some interesting ideas in Chairman Issa’s draft bill that deserve careful attention, and I look forward to working with him and my colleagues in the Senate to improve management of the nearly $80 billion our federal government spends each year on its IT systems.

SC: What are the biggest obstacles to IT reform in this Congress?

DI:

The biggest obstacles are complacency and protectionism of the status quo. Many inside government resist fundamental change. Many in the private sector profit handsomely from the disjointed and stove-piped fashion in which the federal government buys its IT requirements. My staff, in researching these issues, found instances where the government was charged multiple times more for the same standard item from one agency to the next.

TC:

While there are many partisan issues that can delay the legislative process, I am hopeful that IT reform is not one of those issues for one simple reason—if done right, it will save money and improve government. To me that is a win-win situation. In addition to considering legislative proposals in this area, the Senate committee I chair is also continuing its oversight of the administration’s IT initiatives, including cloud first, Portfoliostats, data center

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Professional Services Council

consolidation as well as strategic sourcing. I intend to use all the levers at my disposal to streamline and improve the purchasing and management of IT systems by the federal government.

SC: Beyond information technology, what are the major management issues and challenges facing the government during this time of budget austerity?

DI:

Longstanding management challenges remain the same and underscore why we can no longer afford the inefficient federal government we currently have. It is encumbered by major structural and organizational issues that have caused and exacerbated waste and redundancy. Government programs reach well beyond agency core missions and are supported by a federal workforce whose compensation on average exceeds that of comparable private sector workers. We have an outdated compensation system in which pay is based more on tenure on the job than it is on performance. This is a model we can no longer afford.

TC:

First and foremost, we here in Washington need to stop lurching from one manufactured budget crisis to another. We’ve got to get away from stop-andgo government, from crisis governing, and from constant fiscal cliffs. Persistent uncertainty and living under the pending

threat of one bad thing after another hurts our economy and erodes confidence that our leaders can get things done. For example, furloughs due to budget constraints make it difficult to recruit and retain the best and brightest workers and it undermines efforts to budget effectively throughout the federal government. Budget instability makes it even harder to keep IT projects on track and makes it difficult to carry out urgent priorities, such as increasing cybersecurity. What we need is a comprehensive plan to address our nation’s fiscal challenges. I favor an approach that does three key things. First, we have to raise revenues, through reducing tax expenditures and eliminating costly loopholes and through raising revenues to the levels we had when we saw four balanced budgets in a row in the late 1990s. Second, we need entitlement reform that doesn’t savage seniors or those living in poverty and keeps these vital programs strong for the long haul. And third, we should look in every nook and cranny of the federal government, every program, every agency, and ask, “How can we get a better result for less money?” If we do those three things, we can finally demonstrate our capacity to get our country back on the right fiscal track. Until we do, we’re only addressing the symptoms, not the disease. Unfortunately, our current situation will likely have a negative impact on all aspects of federal management, particularly if it remains in effect for an extended period of time. 3

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Somethingâ&#x20AC;&#x2122;s Better than

Nothing: How the Presidentâ&#x20AC;&#x2122;s Executive Order on Critical Infrastructure Cybersecurity Fills Certain Gaps in Cybersecurity Protections and Response Capability by Scott Hommer and Keir X. Bancroft Venable LLP

hile the fractious 112th Congress was able to agree that there is a need for comprehensive cybersecurity legislation, it was unable to pass any comprehensive legislation in light of varying factions voicing competing considerations. Following Congress’ failure, the Obama administration developed an executive order intended to address critical gaps in federal agency action and in the country’s ability to address cyber threats to critical infrastructure. The February 12, 2013 order, “Improving Critical Infrastructure Cybersecurity,” succeeds in filling some of those gaps, while others will require a legislative remedy.

Current Cybersecurity Protection Gaps

Key gaps in the realm of cybersecurity protections exist, many of which were debated throughout the varying iterations of cybersecurity legislation. Among the most critical are the following:

1. Liability: Private sector businesses are concerned about the liability they might incur if they share information about company cyber vulnerabilities or breaches, which might spur lawsuits or risk disclosing competitively sensitive information. 2. Privacy and Corporate Confidentiality: Both industry and civil liberties organizations are concerned that reporting information about vulnerabilities or breaches could involve the disclosure of personally identifiable or business confidential information. 3. Mandatory versus Voluntary Reporting: A key facet of the policy debate is whether reporting on cyber vulnerabilities and breaches should be mandatory or voluntary. Until that question gets answered, uncertainty pervades many sectors. background photo: visual 28 / istockphoto.com

4. How Much Oversight? Any new law or government regulation will likely overlay new requirements across a number of sectors. Those who disfavor burdensome new government regulation oppose cybersecurity legislation for just this reason. Professional Services Council

Coverage Under the Executive Order

The order seeks to fill several of the gaps in cybersecurity protection across the country’s “critical infrastructure,” defined as “systems and assets, whether physical or virtual, so vital to the United States that the incapacity or destruction of such systems and assets would have a debilitating impact on security, national economic security, national public health or safety, or a combination of those matters.” To protect this broad critical infrastructure, the order calls for the following measures.

The order fosters open collaboration between government and industry members, and like cybersecurity information sharing,

relies on voluntary information disclosure.

private sector owners and operators of critical infrastructure. Privacy and Civil Liberties Protections Integrated into cybersecurity information sharing and all activities directed under the order is a requirement for all agencies involved to coordinate their activities to protect privacy and civil liberties. DHS is now required to issue an annual report assessing the effectiveness of protections in cybersecurity efforts, which helps address privacy and civil liberty concerns. The order does not, however, detail what steps would or should be taken to protect confidential business information. Critical Infrastructure Partnership Advisory Council (“CIPAC”) Under the order, the Secretary of DHS will establish the CIPAC to provide a process for members of federal and state governments and all affected private industries to coordinate on improvements to critical infrastructure cybersecurity. The order fosters open collaboration between government and industry members, and like cybersecurity information sharing, relies on voluntary information disclosure.

Baseline Framework to Reduce Cyber Risk

Cybersecurity Information Sharing

Within 120 days of issuance, the Director of National Intelligence, the Attorney General, and the Secretary of the Department of Homeland Security must produce unclassified reports on cyber threats against specific targeted owners and operators of critical infrastructure. This information will be communicated to the targeted entities. A process will also be established for owners and operators of critical infrastructure to share information through the joint-DHS and Department of Defense Enhanced Cybersecurity Services Program, which is expanded to cover all critical infrastructure sectors. This requirement places responsibility for program coordination with DHS, and the order clarifies that information sharing involves, in part, data voluntarily provided to the government by

The order provides a framework for the Commerce Department’s National Institute of Standards and Technology (NIST) to develop a preliminary “cybersecurity framework,” which will establish standards and procedures to reduce cyber risks. Using “technology neutral” standards, NIST will develop information security controls on business confidentiality, privacy, and civil liberties. Thereafter, each sector-specific agency will report to the president whether it has clear authority to address cyber risks to critical infrastructure, what authorities exist, whether additional authorities are required, and whether any requirements overlap, conflict, or could be harmonized. The order also requires the Secretary of Homeland Security to provide performance goals for the cybersecurity frame Service Contractor / March 2013 / 13

work, which will be informed by efforts to identify critical infrastructure at the greatest risk of a cybersecurity incident. The order also contemplates that owners and operators of critical infrastructure will have input into development of the NIST framework. Further, within 2 years of publication of the final framework, agencies will consult with these owners and operators to report on any duplicative, conflicting, or excessively burdensome requirements. These measures address arguments of those concerned about burdensome regulatory requirements and the prospect of mandatory information sharing. These measures, however, do not address the question of mandatory breach reporting to the government by companies or whether such reporting would trigger any company liability. Voluntary Critical Infrastructure Cybersecurity Program The Secretary of Homeland Security will coordinate with sector-specific agencies to create a voluntary program advocating adoption of the cybersecurity framework by owners and operators of critical infrastructure and other interested entities. Though the program will be voluntary, within 120 days of the order, the Secretaries of Treasury and Commerce are directed to identify incentives to owners and operators of critical infrastructure to participate in the program. The voluntary nature of the program and the directive to incentivize participation further indicates that the order seeks voluntary compliance. While a voluntary program may indicate a less burdensome regulatory regime, it leaves open the question as to how much participation and effective mitigation efforts can be expected.

Identifying Critical Infrastructure at the Greatest Risk Within 120 days of the order, the Secretary of DHS must identify critical infrastructure where a cybersecurity incident could reasonably result in catastrophic regional or national effects on public health or safety, economic security, or national security. The

While a voluntary program may indicate a less burdensome regulatory regime, it leaves open the question as to how much participation and

effective mitigation efforts can be expected.

Secretary will consult with sectorspecific agencies to identify critical infrastructure owners and operators at risk. Thereafter, the sector-specific agencies will confidentially inform the at-risk owners and operators of the organizations of their determination. The government’s identification of an organization as being at risk will likely spur internal organizational efforts to address and mitigate any vulnerabilities that contribute to that risk. Additional Incentive: Changes to Federal Procurement Process The order also calls for the Secretary of Defense and the Administrator of the General Services Administration to make recommendations to the president on the feasibility, security benefits, and relative merits of incorporating security standards into acquisition planning and contract administration. The report must also analyze steps to take to harmonize existing procurement requirements related to cybersecurity. This may incentivize increased participation in cybersecurity efforts for those contractors seeking to ensure comprehensive cybersecurity compliance.

Coordination With Sector-Specific Agencies The order calls for sector-specific agencies (SSAs) to coordinate interaction between the federal government and the owners and operators of critical infrastructure in the development and adoption of the cybersecurity framework. Under a new Presidential Policy

14 / Service Contractor / March 2013

Directive 21, “Critical Infrastructure Security and Resilience,” issued the same time as the executive order, SSAs (or sometimes multiple SSAs) are designated to coordinate 16 specific sectors as identified in the policy directive. For example, the policy directive designates the Department of Defense as the SSA for the defense industrial base, DHS as the SSA for the communications sector, and the Department of Health and Human Services for the healthcare and public health sector. The delegation of SSAs to specific sectors helps illustrate the Obama administration’s understanding of the nation’s critical infrastructure for which cybersecurity protections must be established. The delegation may spur commentary from those interested in risks that are specific to, or regulations that could apply to, those specific industries. How the order is implemented will likely shape arguments as to whether cybersecurity protections are too burdensome or are appropriate to the applicable level of risk.

What Gaps Remain?

The order appears to make progress in addressing several of the key outstanding gaps in cybersecurity protections. The administration’s approach to addressing cybersecurity for critical infrastructure calls for coordination by DHS, encourages voluntary participation by government and private organizations, and recognizes the need to protect personal privacy, civil liberties, and business confidentiality. The order, however, does not address gaps concerning disclosure or liability, nor does it clarify if a company disclosing information about a cyber threat or a breach would be protected against government or third-party liability based on its disclosure. We know that there are limits to what an executive order can address, such as those relating to criminal conduct, civil penalties or enhanced funding. Some combination of legislative and executive action is probably required to fully address the needs of companies in cybersecurity. 3 Professional Services Council

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Professional Services Council

Public/Private Partnerships in Development:

A Versatile Tool in an Evolving Aid Landscape by Lawrence J. Halloran Director, PSC International Development Initiative

photo: andres / bigstock.com

he sources and objectives of international development spending have changed dramatically since the end of the Cold War. Many former recipients have become donors and participation by global corporations and foundations has reshaped a development landscape once dominated by the U.S. and a few other donors.1 In this new development ecosystem dominated by private capital from a variety of sources, public-private partnerships (PPPs) have emerged as a popular approach to align the activities of disparate actors to achieve desired economic and social outcomes. Last October, the PSC International Development Task Force (IDTF) and the Coalition of International Development Companies (CIDC), which integrated to form PSC’s new Council of International Development Companies, cosponsored a panel discussion on the role of U.S for-profit development companies in public-private partnerships created to achieve U.S. foreign assistance objectives.2 Representatives from the U.S. Agency for International Development (USAID) and four development companies addressed three questions that dominate the current push by USAID and the Department of State to

increase the use of partnerships in their assistance delivery portfolios: 1. What is a public private partnership in the context of international development? 2. What are the benefits and drawbacks of PPPs in attempting to achieve development goals? 3. What is the future of PPPs in U.S. and international development?

Definitions

No standard definition of a PPP is used across federal agencies or between international aid agencies. Apart from the involvement of non-traditional forprofit actors (e.g. Wal-Mart) and some agreement to share assets and risks, the shape and scope of PPPs vary widely. According to a July 2011 Congressional Research Service (CRS) report, a key definitional aspect of all PPPs involving U.S. federal agencies “is that that the continued on page 19

Congressional Research Service (2011). Foreign Assistance: Public-Private Partnerships (R41880) [hereinafter “CRS Report] Retrieved from http://www.fas.org/sgp/crs/row/R41880.pdf 2 Transcript of the PSC/CIDC Joint Forum on Public Private Partnerships (2012). [hereinafter “PPP Transcript”] Retrived fromhttp://www.pscouncil.org/i/c/International_Development_Task_Force/c/c/InternationalDevelopmentTaskForce/International_Development_Task_Force.aspx?hkey=e1ad1618-bf9b-48fe-8a2c-7562bf8dbc8d 1

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Experts for the 21st Century

Professional Services Council

from page 17

private partner is not a vendor, contractor, grantee, or government-funded implementer, but rather, ideally, an equal partner invested in every stage of the partnership activity.” 3 Often used in the past to finance the construction and privatize maintenance of infrastructure projects, PPPs are now used in every development sector. The Center for Strategic and International Studies found that PPPs “have been used successfully for more than a decade by U.S. development agencies to create supply chains, increase employment, and support research and innovation, among many other accomplishments.”4 At the PSC/CIDC program on partnerships, Chris Jurgens, Global Partnerships Division Director in USAID’s Office of Innovation and Development Alliances, acknowledged that U.S. forprofit development companies often helped broker, design and implement these multi-party alliances.5 For example, working with USAID, CARANA Corporation is key player in the West African Trade Hub that facilitates cooperation between companies, financial institutions, civil society, governments, donors and entrepreneurs.

Promise and Problems

Proponents point to the reduced volume of official development assistance relative to total capital flows to the developing world and say PPPs offer a tool to leverage scarce public resources, capture market efficiencies and assure greater sustainability through the involvement of civil society organizations and profitmotivated companies. But acclaim for PPPs in development is not universal. Critics cite the higher management overhead required to design and implement PPPs and the difficulty of quantifying the true value added through use of a PPP versus a traditional assistance modality. The CRS report on public-private partnerships echoed those concerns, and also cited the potential for a distortion of development priorities by commercial incentives, a tendency to focus PPP activity in relatively advance countries to the detriment of those most in need, and the risk of involving unsavory or corrupt governments or private sector partners.6 And the U.S. government can be a difficult partner. According to CSIS, “the ability of U.S. development agencies to partner with others continues to lag” due to limited coordination and

information sharing and “the lingering bias in U.S. government development agencies against for-profit private-sector actors.”7 In addition, complex government procurement rules can impede the agility and flexibility sought by private sector partners. While federal agencies have taken some steps to adapt procurement systems to facilitate PPPs (e.g., use of gift or prize authorities), those systems remain an obstacle to innovative partnership arrangements.8 Nor are the criteria and standards well established for determining when a PPP is the most appropriate and effective development mechanism. According to one analysis, use of PPPs is not disciplined or prioritized, often resulting in “resources committed to ‘one-off ’ or ad hoc projects when the same amount of effort could result in a strategic long-term sustainable program” through traditional development channels.9 Participants in the PSC/ CIDC panel on PPPs cited the need for on-going monitoring and evaluation of partnership efforts to identify the best conditions and relative advantages of using non-traditional alliances to achieve lasting development results. continued on page 20

CRS Report, p.1. Center for Strategic and International Studies (2011). Seizing the Opportunity in Public-Private Partnerships. {hereinafter “CSIS Report”] Retrieved from http://csis.org/publication/seizing-opportunity-public-private-partnerships 5 PPP Transcript, p. 3. 6 CRS report, p. 12-13. 7 CSIS Report, p. 15. 8 CSIS Report, p. 18. 9 The Washington Quarterly (2012). The 21st Century Force Multiplier: Public-Private Collaboration. Retrieved from https://csis.org/publication/twq-21st-century-force-multiplier-public-private-collaboration-spring-2012 3 4

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from page 19

The Trajectory

Despite the challenges, PPPs are here to stay. Given the prospect of prolonged budgetary constraints, the use of PPPs will continue to grow as a means to leverage and maximize aid resources. The Quadrennial Diplomacy and Development Review (QDDR) includes publicprivate partnerships as part of the broader U.S. strategy to reach beyond foreign governments to engage civil society and the private business sector.10 Privatesector players will increasingly move from social responsibility motivations to focus on achievable market-based results while government and civil society actors will expect partnerships to yield sustainable improvements in poverty reduction, organizational capacity building and other public objectives. Managing the expectations and incentives of differently motivated partners will remain one of the key aspects of successful PPPs.

That is the role often played by for-profit international development companies, to bring development expertise to the partnership design and bridge corporate and government objectives, which can diverge. Development companies understand the incentives, and often the impatience, of global corporations working beyond the familiar terrain of pure market development. But for-profit development firms face a different set of considerations when evaluating whether, when and how to participate in PPPs because so much of current partnership creation involves grants rather than contracts. During the PSC/CIDC panel on partnerships, Kristi Ragan, DAI Chief of Party and Strategic Advisor to USAID Grand Challenges for Development, offered a four-point rationale for-profit companies might use to assess PPP opportunities. First, partnerships can be a good place to field test innovative approaches that might not be

accepted with the narrower requirements of a contract proposal. Second, PPPs offer an opening to establish private sector and civil society relationships in countries where contract work is not yet, but soon will be, available. Third, participation builds the skills of company personnel in the formation and management of partnerships so new hires are not needed to remain active in this growing field. And finally, participation in PPPs can help companies establish an identity in new development sectors and regions, and identify local partners for future contracts. As the use of PPPs in development expands and matures, for-profit implementers will need to apply and refine Raganâ&#x20AC;&#x2122;s criteria to help them evaluate the risks and rewards of putting some of their own capital and reputation on the line in these complex, multi-stakeholder partnership structures. 3

10 U.S. Department of State (2010). QDDR: Leading Through Civilian Power. Retrieved from http://www.state.gov/documents/organization/153108.pdf

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Professional Services Council

Linda Gooden

continued from pg. 7

includes many hardworking and talented people. However, since the technology and business models are continuously evolving, the workforce needs to be bolstered, both in numbers and in continuing education. Contracting officers on complex IT procurements need to have the time and knowledge to match the requirements of the procurement with the most appropriate acquisition methodology. One positive step in this direction is the provision in the FITARA bill that would apply 5 percent of the fees collected by government-wide acquisition contracts and General Services Administration schedules to improving the training of IT acquisition professionals. DoD and OMB initiatives also support additional hiring and training to strengthen the acquisition workforce.

Process Contracting officers need to engage with end-users throughout the process to ensure that the acquisition delivers what the users need. And they need to engage with potential offerors and the cognizant CIO early on, as the acquisition plan is being developed, to ensure that the request for proposal takes into account the latest technology and best practices. From a process point of view, FITARA is on the right track by requiring a govern-

ment-wide assessment of IT acquisition capability and the use of FedRAMP to certify the security of cloud services. It designates certain agencies as centers of excellence for complex IT acquisitions, which will enable other agencies to benefit from critical skills not internally available. It supports OMB’s initiatives for data center consolidation and website transparency, and it promotes the use of open-source software and mobile apps, which can often meet user requirements at a much lower cost than traditional software. There are, however, two process changes in FITARA that are problematic as they are currently set forth. One would centralize IT budget authority with agency CIOs. If we agree that IT is the critical enabler to most government missions, the problem with this proposal is that for the acquisition of systems that are core to an agency’s mission, it is the operational managers, not the CIO, who have the subjectmatter expertise essential to making the best trade-offs between capability, cost, and schedule. The other change that could be problematic is the requirement that OMB reassess existing government-wide acquisition contracts and multiple-award contracts for overlap. If this reassessment results in a widespread re-procurement of replacement contracts, that would drive

up bid and proposal costs (which are borne by the taxpayer) without a commensurate improvement in the process.

Results Ultimately, the point of all acquisition reform is to get better results faster and at lower cost. The best measure of this is “ROI”—return on investment. At a time when budget pressures across the government are at unprecedented levels, it is important to make accurate assessments of what the ROI of a given reform will really be. Will it save money in the long term or just the short term? Will critical information remain reliable? Will critical networks remain safe from adversaries? In making these kinds of assessments, it is also important to keep in mind that IT has been for decades a powerful driver of productivity in the private sector, but less so in the federal government. As Issa’s introduction to FITARA points out, federal managers say that 47 percent of their IT budget goes to maintain deficit resources. Creative, disciplined investment in more effective and efficient IT systems and infrastructure could go a long way toward closing that productivity gap and generate a ROI that could significantly reduce long-term costs for the government. 3

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George Newstrom

continued from pg. 7

Agencies are clamoring to harness the benefits of complex cloud computing, green IT and other strategies to accomplish the age-old mission to do more with less. The infrastructure and application transformations required today to leverage new technologies are not unlike the impact felt during Y2K. The proliferation of the internet and wireless access we now have brings with it the abilities to be more mobile and productive. That being said, it also brings with it security, integration, and modernization changes that are imperative in the federal government. This means government acquisition practices must change so that the federal government is able to select the best solutions to meet their requirements. Some changes that I believe need to be taken in order to achieve effective, efficient information technology acquisition reform include: • Federal agencies need to understand the clear benefit expectations for the government solutions requested in an RFP and evaluate responses accordingly. In addition, more stringent rules of engagement must be established for RFPs. Prior to receiving the green light to proceed, the agency should illustrate their understanding of the technology solutions requested and clear life cycle cost expectations. Clear understanding andthe value-based requirements greatly save date ad_2_Layout 1 3/14/13 3:34 PM

enhance the likelihood that the solution provided to the federal government, reduces risk for the vendor (which in turn reduces cost) and establishes clear lines of accountability. • The federal government should review and greatly reduce the North American Industry Classification System (NAICS) codes that are currently established. They are outdated and do not provide the degree of understanding and functional value that they once did. Functional standards should be established for each technology area. For example, when evaluating cloud, service desk, security, mobility, and other complex technology services, the federal government should establish review boards (made up of independent evaluators) to evaluate vendors that provide the technology and services within the business area and “certify” them for that competency. Once a vendor is “certified,” the government agencies can eliminate basic qualification requirements and focus on the solutions offered that will benefit the government the most. This will greatly streamline vendor and federal labor associated with awards. Vendors should be required to “re-certify” periodically. For acquisition requests outside of the key technology areas, vendors Pagecertified 1

can build upon “certified” solutions in order to customize solutions that meet agency specific requirements. • The acquisition guidance for “best value” should be reconsidered. The definition of “best value” should include full life cycle cost analysis. Once government agencies can articulate the business problem that they want solved and vendors are “certified” for the work, procurement evaluations should focus heavily on the overall benefit to the agency and consider the real life cycle costs to the taxpayer. Most of us would not hire an attorney, doctor or tax preparer based on current “LPTA” standards, because we know that the initial costs of professional, qualified expertise is far less than the additional cost we might incur if less qualified help were engaged up front. So, why do it in government IT procurement? There is a myth that innovation equals expense. In reality, innovation should be the process that takes new ideas and implements them in a way that creates value by solving unmet needs. The ultimate success of new technology acquisition reform should be measured by the impact we have on unleashing the creativity and innovation that makes this country great, while reducing overall costs. 3

Save the Date!

OCTOBER 6–8, 2013 • TH E GRE ENBRI ER

22 / Service Contractor / March 2013

Professional Services Council

Coming Clean on

Public Private Partnership by Kristi Ragan DAI Chief of Party and Strategic Advisor to USAID Grand Challenges for Development

hat a relief that partnerships are no longer the “flavor of the day” in international development. They’re being replaced by a new generation of buzz words that include “social entrepreneurism,” “resilience,” and, of course, “innovation.” Shifting the spotlight away from partnerships allows the development community space to take stock of partnership successes and failures, their impact and, most critically, how they can they be better designed and implemented. Today, stagnating developed economies and unprecedented growth in developing countries provide more opportunities for public private partner-

ships. Companies are going into countries where they have previously never worked, and, as a result, social and economic problems that were formerly the concern of national governments, development donors, NGOs and implementers are now shared increasingly with for-profit organizations. Recruiting a skilled workforce, developing low cost (and hopefully renewable) energy sources, having reliable communications and internet, and ensuring access to clean and plentiful water are now common concerns of donors and businesses alike. These shared problems offer rich opportunities for collaboration between the public and private sectors.

There are plenty of partnership examples over the last decade from which to distill lessons about what has worked and what hasn’t. Many partnerships have been plagued by an overemphasis on cash donations and an under emphasis on actual impact. Donors initially sought corporate partners to write a check when critical programs were being negatively impacted by declining aid budgets. On the other side, businesses were looking at stretching their corporate social responsibility (CSR) funds for bigger and better PR and photo opportunities. These faulty motivations led to the design of weak partnerships lacking continued on page 24

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from page 23

24 / Service Contractor / March 2013

convinced that this new endeavor will enhance the company’s eventual success in the country where they are investing. As a result of honest discussion of partnerships failures, partnership building in international development has gotten smarter. For instance, companies like Wal-Mart are partnering to train the female workforce in supplier factories in India and Bangladesh, even though they don’t own the factories. Industry players like Chevron are engaging in carefully thought out, long-term household wealth creation by working on value chains in the Niger Delta, instead of dispensing large amounts of cash directly to local populations. The fact is that donors and implementers, including businesses, must engage in partnerships for enhanced and enduring impact. Well-designed partnerships improve the business environment, and thus future profits. It is a mark of our times that there are no single actor solutions for the world’s most complex development problems. Collaboration and partnerships are essential. They are the defining features of modern life. We can take the lessons mentioned above and build on them to design partnerships in better ways. Partnerships can be expanded to include national governments, local institutions and academia, as well as large multi-national corporations. It is alright to start small and test the relationship out, but if it is shown to be beneficial for all parties, then there needs to be a concerted effort to grow the relationship for the future in ways that will deliver even greater benefits. We can plan with our partners’ new development sectors, and not pigeon hole a company into only one issue. We all know that Coca Cola focuses on water but it needs education and clean energy as well. Finally, if we cannot obtain a value from the partnership that is greater than what we could have achieved on our own, then we shouldn’t create one. The best partnerships are those that can stand up to tough scrutiny and honest assessment. They will be able to demonstrate their enduring value to the partners via concrete, measurable results and, most importantly, to the emerging markets they are operating in. Happily, partnerships are no longer a development buzz word, they are a development imperative. 3

Professional Services Council

illustration: akindo / istockphoto.com

both strong commitments and a deeply held common objective. Some CSR funded partnerships were subject to funding uncertainty, as they depended on the corporate partner’s profit margin in the most recent quarter, a funding uncertainty that hampered the planning and implementation of activities. A few partnerships never made it off the drawing board after an unexpected CEO change brought in a different focus for CSR spending. Many partnerships had short term horizons, which undermined their ability for significant impact. These partnerships never allowed the relationship between the donor and company to develop. Relationships between vastly different actors with different timeframes and even different languages require longer durations to build the trust and efficient day-to-day partnership management that is critical to success. Partnerships should be leveraged over the long term for maximum gain. Partnerships are often approached as a project, framed as a set of activities carried out within a limited lifespan and culminating in a final report and maybe a workshop, since projects are the donor’s traditional way of implementing activities. Lacking a broader, shared collaborative framework when projects end, the corporate partners often walk out the door instead of engaging in a new conversation aimed at building on the lessons from the partnership. Partnerships are certainly not the solution for every complex problem and many partnerships were undertaken when they should not have been. In the heyday of partnerships there was a belief that getting any company to the table was good. We have learned the hard way that this is not the case. Investing in relationships among organizations takes time to do well. A partnership uses scarce human and financial resources in both organizations and therefore each has a responsibility to deliver results rather than frustrate partners with time consuming activities. Partnerships must have a value for each of the partners, and they shouldn’t shy away from having that value complement the overall business focus of a company. Partnerships are most successful when they integrate the company’s business into the project, rather than ignore it. Business isn’t the problem, it’s the point. A corporation will only fully embrace a partnership if its management is

PSC Commission Aims to Improve Services Delivery

and Government Performance by Robin Lineberger CEO Federal Government Services, Deloitte LLP and Ellen Glover Executive Vice President of ICF, International Co-Chairs of the PSC Commission on Driving Efficient and Innovative Services Outcomes

photo: almagami / bigstock.com

s you read this, the PSC Commission on Driving Efficient and Innovative Services Outcomes is finalizing our report examining the systemic barriers to, and the tools to enhance, efficiency and innovation in the government’s acquisition and use of technology and other complex requirements. Since we launched the commission in January, the commissioners have been examining five key themes and seeking input from a range of stakeholders inside and outside of government, such as the Chief Acquisition Officers and Chief Human Capital Officers. The commission has explored each of these themes, and other connected issues, with the goal of identifying actionable strategies that can help drive real efficiencies and performance improvements across key government programs and activities. Among those overarching themes and key questions are: I. The Services Taxonomy Reviewing the current government taxonomy for services and recommending a new taxonomy more reflective of the marketplace and varying market dynamics/buying strategies.

II. Delivering Results Through Efficiency Identifying current acquisition/ implementation trends, gaps and inconsistencies; recommending changes to the current processes and polices.

III. Encouraging Innovation What does the government need to do in the near term (during these times of exceptional austerity and uncertainty) to create an environment in which culture change is both encouraged and supported so continued on page 26

Professional Services Council

Service Contractor / March 2013 / 25

from page 25

that agencies can begin to set the stage for a broader transformation over the longer term? IV. Governance How might the government supplement or change its current organizational/programmatic governance structures and practices to ensure both higher performance and greater accountability? V. Human Capital In what ways does the government need to shift its strategic planning and approach to human capital in its acquisition and technology workforces and in how it views supplemental support from the private sector? Cutting across all of these topics are the questions of the role of government leadership at all levels in this process and the key responsibilities of industry. Throughout the process we asked

ourselves “How do we, as an industry, need to adjust or adapt our practices to enable government success?” When our report is released in the coming weeks we believe we will have answered these questions and articulated key opportunities that can help create a sustainable services acquisition ecosystem that most effectively supports the government’s mission needs. And, in doing so, we will provide the government with the necessary, broad recommendations on how to better align the services acquisition process with program outcomes, the key to obtaining the right ecological balance. PSC was inspired to take on this work by a combination of factors. First, the results of PSC’s 2012 Acquisition Policy Survey validated a decade of government inertia in addressing the long-term gaps in the government’s development and deployment of acquisition and technology skills. The growing demographic crisis that faces both the acquisition and

technology communities and the austere environment in which government will be operating for the foreseeable future also inspired our actions. Given this inertia of the government on some of the issues raised in the past, we feel now is the time for a serious look at the core challenges and at the strategies and tools that could be used to help the government deliver the highest quality services and mission execution in a resource-constrained environment. Thus, we 20 commissioners put our collective wisdom, and that of other PSC member company executives, other organizations, and federal agency officials, to work developing a set of actionable recommendations. We realize the problems facing the government’s acquisition system are enormous and no single commission or report has been or will be able to fully address all of them. But that doesn’t mean that nothing should be done in the face of these problems. 3

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11:55 AM Professional 3/8/13 Services Council

Earle Williams (right) receives the first Krueger Medal from then-Chairman Joe Kampf (left) at the 30th Anniversary Gala in 2003.

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Bill Tracker: 113th Congress-First Session (2013) Federal Cost Reduction Act of 2013, Connolly (D-VA) Summary 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. STATUS Referred to Armed Services, Oversight and Government Reform, and Transportation and Infrastructure Committees on 2/4/2013.

H.R. 472

Cyber Intelligence Sharing and Protection Act, Rogers (R-MI) Summary Would establish cyber threat intelligence sharing procedures between the intelligence community and certain private sector entities. STATUS Referred to Intelligence Committee on 2/13/2013.

H.R. 624

H.R. 731

Protecting Americans Abroad Act, Radel (R-FL) Summary 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. STATUS Referred to Foreign Affairs Committee on 2/14/2013. Contracting and Tax Accountability Act of 2013, Chaffetz (R-UT) Summary Would propose for debarment any contractor with a tax delinquency. Would prohibit the award of contracts in excess of the simplified acquisition threshold unless the prospective contractor certifies in writing to the awarding agency that the contractor has no seriously delinquent tax debt.

H.R. 882

STATUS

Referred to Oversight and Government Reform Committee on 2/28/2013.

H.R. 933

Department of Defense, Military Construction and Veterans Affairs, and Full-Year Continuing Appropriations Act of 2013, Rogers (R-KY) Summary Would fund government operations through September 30, 2013, and provide for full-year defense appropriations and military construction/veterans affairs appropriations. Would extend funding at the level required by the March 1 sequestration order. Would extend the pay freeze for federal employees. STATUS Passed by the House 267-157 on 3/6/13 Putting Our Veterans Back to Work Act of 2013, Reid (D-NV) Summary Would provide a preference to offerors for procurements over $25,000,000 that employ veterans as at least 5 percent of 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. STATUS Referred to Veterans’ Affairs Committee on 1/22/2013. Cybersecurity and American Cyber Competitiveness Act of 2013, Rockefeller (D-WV)

S. 6

S. 21

Summary Encourages Congress to enact bipartisan cyber security legislation that would improve communication and collaboration between the government and the private sector. STATUS Referred to Homeland Security and Governmental Affairs Committee on 1/22/2013.

Professional Services Council

Service Contractor / March 2013 / 29

Bill Tracker: 113th Congress-First Session (2013) S. 169

Immigration Innovation Act of 2013 (I-Squared Act), Hatch (R-UT) Summary 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. STATUS Referred to Judiciary Committee on 1/29/2013.

S. 171

Military Pay Continuation Act of 2013, M. Udall (D-CO) Summary Would require DoD to continue to pay active members of the armed services, civilian DoD personnel who support the armed services, and DoD contractor personnel who directly support the armed services during a government shutdown. STATUS Referred to Appropriations Committee on 1/29/2013. Assuring Contracting Equity, T. Udall (D-NM) Summary Would raise the government-wide small business contracting goal to 25 percent from 23 percent and would also increase the goals of each of the various 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. STATUS Referred to Small Business and Entrepreneurship Committee on 1/31/2013.

S. 196

Service Contract Act Training

S C A

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:

June 10-11, 2013 October 23-24, 2013 Visit www.pscouncil.org for more details and registration.

30 / Service Contractor / March 2013

Professional Services Council

Policy Spotlight

Keeping “Strategic” by Alan Chvotkin

in “Strategic Sourcing”

Executive Vice President and Counsel, PSC

illustration: VLADGRIN / bigstock.com

ince the launch of the Federal Strategic Sourcing Initiative (FSSI) in 2005, strategic sourcing has focused on four commodity areas: office supplies, domestic delivery services, print management, and wireless expense management. Chosen after a detailed analysis of federal spending, the common thread among those four areas was their wide availability in the commercial marketplace, the competitive selection of a limited number of vendors to be used by all federal agencies, and simple contracts that offered all agencies volume discounts and escalating price reductions. Over the past seven years, the prices federal agencies have paid for these items has demonstrated that the proper selection of items based on the spend analysis and aggressive governmentwide use of these awards can save the government time and money and reduce administrative costs, although a variety of factors have constrained the savings that were achievable, according to the Government Accountability Office. In addition, many federal agencies have undertaken their own strategic sourcing initiatives, typically on an agency-wide or commodity-specific basis. In short: in choosing these areas, the executive branch has acted strategically and demonstrably saved government resources. In December 2012, the Obama administration reinforced the importance of strategic sourcing by renaming an interagency focal point as the Strategic Sourcing Leadership Council (SSLC) and giving it the responsibility to lead efforts to increase the use of government-wide management and sourcing of goods and services and to identify at least five more product and/or service initiatives for which new governmentwide acquisition vehicles or management approaches should be developed. SSLC agencies would be required to use these contracts for most purchases. In addition, OMB specifically charged GSA to establish at least five additional governmentwide strategic sourcing offerings in both fiscal year 2013 and 2014 and to increase the transparency of prices paid for common goods and services so it can be used by agency officials in their market research and contract negotiations. While these strategic sourcing initiatives are important, it is also important to recognize that some competition among Professional Services Council

government-wide contracts is appropriate because it offers benefits to government agencies such as competitive pricing and better customer service from executive agents than may be achieved from a narrower range of award winners. It is also essential to recognize that not all goods and services the government buys are appropriate for strategic sourcing. One example of this is GSA’s long-developing effort to create a governmentwide acquisition contract titled “One Acquisition Solution for Integrated Services,” or “OASIS.” OASIS is intended to provide government agencies with contractual solutions to complex professional services. It will allow agencies to formulate a total solution to a professional services-based requirement across five core disciplines and will allow agencies to use all contract types at the task order level. GSA expects a five-year base period of performance with one five-year option, and a total ceiling value of as much as $10 billion, which would make it one of the largest professional services contracts awarded. Yet GSA has chosen to layer on top of the challenges that already exist with OASIS additional requirements relating to pursuing a strategic sourcing initiative. At a January 31 PSC cosponsored program on strategic sourcing, that also featured an extensive discussion of GSA’s OASIS, we raised a number of concerns with the proposed “commodity” approach to high-end, non-replicable services likely to be offered through OASIS and the risk of using standardized labor categories and pricing for such services. We also raised concerns about the potential availability, and impact, on small businesses of such an acquisition strategy. Immediately following that program, PSC established a working group for our member companies that serves as the primary forum for PSC member companies to discuss their perspectives on OASIS. We’ll be on top of this OASIS procurement through its duration. Strategic sourcing is an appropriate and proven acquisition methodology for commodity-type products and even some types of services. But not every purchase can or should be made through strategic sourcing techniques. The secret to success—and to PSC’s support—is knowing the difference. 3 Service Contractor / March 2013 / 31

Committee Corner: Homeland Security Task Force Taking the Lead on Cybersecurity, DHS Acquisition Reform

by Jeremy Madson, Federal Affairs Manager, PSC

ince its formation just over a decade ago, the Department of Homeland Security (DHS) has grown to become the largest federal agency customer for PSC member companies after the Department of Defense. Recognizing the department’s growing mission and expanding financial footprint in our industry, PSC established its Homeland Security Task Force (HSTF) in 2009 to serve as the focal point for PSC’s engagement with DHS and its component agencies. Since that time, the task force has engaged in a continuing dialogue with the department that has proven fruitful for both PSC members and DHS. Founding HSTF Co-chair Larry Besterman of TWD & Associates, Inc. and new Co-chair Wayne Lucernoni of Harris IT Services Corporation, lead the Homeland Security Task Force.

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your business key to our success.

32 / Service Contractor / March 2013

In keeping with its key role as a channel for communication between DHS and industry, the HSTF has served as a conduit through which PSC makes recommendations to the department about how it communicates and collaborates with the private sector (particularly through its industry day meetings), its approach to small business contracting, and overarching DHS acquisition policies. The task force has hosted a range of DHS officials over the past five years. Notably, DHS Under Secretary for Management Rafael Borras addressed PSC’s Board of Directors under the auspices of the HSTF in 2012. DHS Chief Procurement Officer Dr. Nick Nayak addressed the task force in one of his first meetings with industry. The task force also hosted DHS’ Chief Security Officer and Chief Human Capital Officer, as well as officials from DHS’ Private Sector Policy Office of Policy and from its Office of Infrastructure Protection and Programs National Protection and Programs Director (NPPD), among others. In addition to headquarters staff, the task force meets with DHS component agencies, which constitute the bulk of the department’s operations. Component leaders who addressed the task force include FEMA’s then Assistant Administrator for Management Al Sligh and CBP Acquisition Executive Mark Borkowski. In 2013, the task force will take on an even greater role and profile as the focal point for PSC’s action in two major areas: cybersecurity and DHS acquisition reform. With respect to the former, the task force kicked off the year by meeting with staff from both the administration and Congress in anticipation of the president’s executive order on cybersecurity, the February 12 release of which came as the culmination of many months of deliberation both on the Hill and in the executive branch. Incoming House Homeland Security Committee Cybersecurity Subcommittee Chairman Rep. Patrick Meehan, R-Pa., among others, is expected to continue the strong focus on cybersecurity policy that yielded numerous legislative proposals in the past several congressional sessions. Similarly, new Senate Homeland Security and Governmental Affairs Committee Chairman Sen. Tom Carper, D-Del., and Ranking Member Tom Coburn, R-Okla., are likely to make cybersecurity and DHS acquisition reform key priorities in the 113th Congress. For more information about the task force, or to be added to the HSTF mailing list, please visit PSC’s website and click on “Committees & Task Forces” or contact Matt Busby at busby@pscouncil.org. 3 Professional Services Council

MEMBER NEWS EMCOR Government Services Receives “Large Business Prime Contractor of the Year” Award From NASA

NASA has selected EMCOR Government Services as its “Large Business Prime Contractor of the Year” for the company’s operation and maintenance work at NASA’s Jet Propulsion Laboratory (JPL), Dryden Flight Center, and Goddard Space Flight Center. The award is to be presented at NASA’s fifth annual Small Business Symposium & Awards Ceremony in Washington, D.C. Selection criteria for the Large Business Prime Contractor Award included exemplary performance on all NASA contracts, demonstrating overall sound small business programs, meeting or exceeding small business requirements, using small business contractors to perform technical tasks required by the contract during its execution, and sponsoring and participating in outreach activities. A panel of NASA business procurement officials evaluated cost-conscious business practices, innovative processes, and adoption of new technologies, as well as overall contributions to NASA’s mission and the Agency’s Small Business Program.

Sabre Systems, Inc. Receives Seven Seals Award

Sabre Systems, Inc. was presented with the National Seven Seals Award for its military and veteran outreach program efforts. The company focuses its military and veterans effort in the following three areas: recruiting and hiring, military and veteran outreach through non-profit organizations, and recognition of employees or their family members through the “Sabre Salutes Our Vets.”

JustinBradley Recognized as a Top Staffing Firm by Inavero and CareerBuilder

JustinBradley has been recognized as one of the top client service firms by research firm, Inavero, for the fourth year in a row. Less than 1 percent of North American staffing firms have been named to the “Best of Staffing” list. JustinBradley has received the Best of Staffing designation since the award’s inception back in 2010. Best of Staffing, presented in partnership with CareerBuilder, is the nation’s only satisfaction award that recognizes exceptional client service within the staffing industry.

Sabre Launches STEM Scholarship Program

Sabre Systems, Inc. announced the establishment of its STEM (Science, Technology, Engineering and Math) Scholarship Program. The program is designed to support high school seniors planning to further their education in one of the STEM disciplines. In an effort to help reduce the financial burden associated with pursuing a STEM-related career, Sabre plans to award multiple $1,000 non-renewable scholarships to deserving students. Scholarship recipients will be selected based upon a thorough review of each applicant’s academic record, personal statement, STEM experience and letters of recommendation. The company is now accepting scholarship applications. Scholarship winners will be announced in the spring of 2013. To qualify for the scholarship, the student must be graduating from a high school located in Hartford County, Md., the southern Maryland tri-county area (St. Mary’s, Charles or Calvert), Thomas Jefferson High School for Science and Technology in

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Service Contractor / March 2013 / 33

MEMBER NEWS Alexandria, Va. or Central Bucks East, Central Bucks West, Central Bucks South, Archbishop Wood, William Tennant or North Penn—all of which are located in the Philadelphia area. For more information on eligibility requirements and how to apply, visit the STEM Scholarships page on the Sabre website http://www.sabresystems.com/AboutUs/CorporateGiving/ STEMScholarships.aspx.

Cherry Bekaert Unveils New Strategic Brand Position

National accounting firm Cherry, Bekaert & Holland, LLP launched a strategic rebranding initiative in January under the new name of Cherry Bekaert LLP, in order to better align with growing middle-market companies. It includes a more contemporary tonality paired with a new website that offers mobile access for users on the move. The tagline for the newly named Cherry Bekaert is “Your Guide Forward.” The brand strategy is a result of more than a year of in-depth research and analysis of clients and marketplace influencers to uncover how Cherry Bekaert should represent its partnership with clients.

Pragmatics Earns ISO/IEC 20000-1:2011 Certification

Pragmatics announced that it has achieved ISO/IEC 20000-1:2011 certification for its program management and service delivery practices. The certification is jointly given by the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC). ISO/ IEC standards provide best practice guidance on planning, implementing, maintaining, and auditing IT service management systems to enhance and improve service requirements to provide value to Pragmatics and its customers.

VT Group Announces New CEO

VT Group announced the appointment of Terry M. Ryan as CEO effective February 4, 2013. David J. Dacquino, the current CEO, is retiring. Ryan most recently served as president and Chief Operating Officer of the Emerging Markets Group of ManTech International Corporation. Prior to joining ManTech, Terry was Chairman and President of Mercury Federal Systems, Inc., and previously worked as an officer at SAIC, Inc., SRA International, Inc. and Adroit Systems Inc. Terry has more than 20 years of experience with the U.S. Department of Defense (DoD), U.S. Congress and federal government customers. As a senior executive in the Office of the Secretary of Defense, he was responsible for overseeing the modernization of airborne and space surveillance and reconnaissance systems from the mid-to-late1990s. He also served as an infantry commander and intelligence officer with the United States Marine Corps for 10 years.

Pragmatics Appoints Dieter Guenter to Lead Transportation Group

Pragmatics announced the selection of Dieter Guenter as group manager of the company’s Transportation Group, Innovative Solutions International, a wholly owned subsidiary of Pragmatics. The

group has domain expertise in aviation-related program management, engineering, and operational projects, and its members have extensive backgrounds in air traffic control, commercial business and general aviation, government, and military service. In his new role, Guenter will focus on aligning with corporate strategic growth plans and leveraging ISI’s capabilities to expand business opportunities in the broader transportation market. He will oversee multiple Federal Aviation Administration support contracts and lead a core team of experts dedicated to delivering stateof-the-art satellite navigation, airport, and aviation technologies.

CETRA Language Solutions Expands Translation and Interpretation Departments

CETRA Language Solutions announced the expansion of its translation and interpretation departments with two new hires. Robin Smith joined CETRA’s interpretation department as a project manager. Smith comes to the position with Korean language expertise and has worked as a freelance interpreter and translator in the legal and medical fields. William Gao joined CETRA as a project manager for the translation department. Gao holds a master’s degree in Translation & Localization Management from the Monterey Institute of International Studies and brings to the company experience as a project manager, translator and interpreter at government agencies and translation companies both in China and in the United States.

JBS International Names Three New Vice Presidents

JBS International announced the promotion of Candace Charkow, Jennifer Kasten, and Larry Robertson to vice president. Candace Charkow joined JBS in May 2006 as the Project Director of the child welfare and foster care practice contract. She brings expertise in state and local child welfare delivery systems— including foster care and child protective services—and skills in system evaluation and enhancement. Jennifer Kasten joined JBS in 2009 as a Senior Researcher in behavioral health practice. She brings expertise in behavioral health program development, technical assistance, evaluation, and epidemiology. Larry Robertson joined JBS 20 years ago as a Clinical Specialist on the SAMHSA Technical Reviews contract and has directed the SAMHSA State Systems Technical Assistance Project supporting treatment services since 1995. Larry brings expertise in behavioral health service systems—particularly at the state level—national technical assistance, and workforce development.

Julien Bois named Partner at JustinBradley

JustinBradley has named Julien Bois as a partner at the recruiting firm. Bois brings over 15 years of experience in finance and recruiting. Prior to JustinBradley, Bois was a senior manager at Randstad, a global recruiting firm, and was an assistant controller at a large Washington, DC firm. Bois has an MBA in Finance from the University of Delaware and is an executive board member and treasurer of the French American Chamber of Commerce.

Have a story for Service Contractor’s Member News section? E-mail Bryan Bowman at bowman@pscouncil.org. 34 / Service Contractor / March 2013

Professional Services Council

PSC: SCENE & HEARD 3

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Peter Warren, policy director for the House Oversight and Government Reform Committee and Emily Murphy, senior counsel for the House Small Business Committee, discuss Congress’s acquisition policy agenda for 2013 at PSC’s Leadership Summit in January.

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Mike Robinson, director of coalitions for the House Appropriations Committee, addresses the January PSC Leadership Summit about the 2013 appropriations battles.

Wood Parker of TASC (left) receives the PSC Outstanding Achievement Award from PSC Chairman John Hillen of Sotera Defense at the PSC Annual Membership Meeting in December.

PSC President and CEO Stan Soloway testified about IT acquisition reform before the House Oversight and Government Reform Committee on Feb. 26. Photo courtesy of House Oversight and Government Reform Committee

Undersecretary of Defense (AT&L) Frank Kendall addresses PSC’s Annual Membership Meeting in December.

OFPP Administrator Joe Jordan outlines the government’s strategic sourcing strategy at a special program hosted by PSC and other associations on Jan. 31. PSC President Stan Soloway briefs Rep. Steny Hoyer, D-Md., and business leaders about sequestration at an event in Lexington Park, Md. in November. PSC President and CEO Stan Soloway participates in a panel discussion on innovation in government performance hosted by the Center for Strategic and International Studies on Jan. 24.

Photo courtesy of CSIS.

Sen. Tim Kaine, D-Va., (center) visits with PSC leaders in a December meeting prior to his swearing in to discuss contractor concerns.

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