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FEDERAL CONTRACTS PERSPECTIVE

Federal Acquisition Developments, Guidance, and Opinions


February 2012
Vol. XIII, No. 2

CONTENTS


Defense Authorization Act Extends Task Order Protests, Mentor-Protégé Program
FAC 2005-55 Finalizes Commercial Item T&M Contract Rule
FY11 Spending Flat at $535 Billion
EPA Updates Information Resources Management Policy
GSA Finalizes Information Technology Security Provision



Defense Authorization Act Extends Task Order
Protests, Mentor-Protégé Program

On December 31, 2011, President Obama signed into law the $662 billion National Defense Authorization Act for Fiscal Year 2012 (Public Law 112-81). As usual, Title VIII, Acquisition Policy, Acquisition Management, and Related Matters, has several provisions of interest to the acquisition community, particularly those in the Department of Defense (DOD):

In addition, Public Law 112-81 includes the Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Reauthorization Act of 2011 as Division E. It extends both the SBIR and STTR programs until 2017, gradually increases the amount of awards each covered agency must make under the SBIR from 2.5% to 3.2% of its research and development (R&D) budget (2017), gradually increases the amount of awards each covered agency must make under the STTR from 0.3% to 0.45% of its R&D budget (2016), increases the limit on Phase I awards under both programs from $100,000 to $150,000, and increases the limit on Phase II awards under both programs from $750,000 to $1,000,000.



FAC 2005-55 Finalizes Commercial Item T&M Contract Rule

Federal Acquisition Circular (FAC) 2005-55 finalizes six interim and proposed rules, including one that permits time-and-materials (T&M) and labor-hour (LH) contracts to be used to acquire commercial services but only when no other contract type is suitable, and one that provides access to three procurement systems through a single website.



FY11 Spending Flat at $535 Billion

Federal contracting spending in Fiscal Year (FY) 2011 remained relatively stable, falling one-half of one percentage point from $537.8 billion in FY 2010 to $535.4 billion.

The following are the largest agencies’ FY 2011 spending compared to FY 2010 spending:

Department/Agency FY 2011 Spending FY 2010 Spending
Defense $375,384,960,591 $367,785,990,181
Energy $25,054,429,790 $25,689,288,940
Health and Human Services $19,389,009,265 $19,101,729,281
Veterans Affairs $17,443,696,285 $16,239,031,219
National Aeronautics and Space Administration $15,371,491,826 $16,078,169,198
Homeland Security $14,204,231,548 $13,579,666,371
General Services Administration $12,121,905,486 $18,088,657,415
State $9,152,752,527 $8,135,288,425
Treasury $7,080,543,677 $5,995,248,733
Justice $7,045,000,606 $6,539,323,170
Agriculture $5,198,600,813 $6,097,939,051
Transportation $4,757,801,503 $5,674,809,882
Agency for International Development $4,107,091,699 $5,495,517,316
Interior $4,082,114,174 $6,160,218,749
Commerce $2,377,004,135 $3,950,854,726
Labor $1,938,966,813 $2,238,657,529
Education $1,861,164,806 $1,835,374,443
Environmental Protection Agency $1,831,188,561 $1,661,177,983
Housing and Urban Development $1,686,106,307 $1,613,720,396
Office of Personnel Management $1,344,866,898 $1,382,808,244
Social Security Administration $1,275,038,121 $1,378,867,038
National Science Foundation $446,493,020 $428,894,017
Smithsonian Institution $280,634,529 $266,666,624
Pension Benefit Guaranty Corporation $272,556,107 $279,218,912
National Archives and Record Administration $230,859,309 $257,328,143
Securities and Exchange Commission $222,734,734 $222,347,137
Nuclear Regulatory Commission $200,465,742 $211,592,460
Small Business Administration $132,305,357 $144,584,565
Peace Corps $70,618,585 $188,419,575
Corporation for National and Community Service $70,215,680 $72,194,780
Executive Office of the President $70,110,456 $73,400,810
Others $655,359,085 $971,376,582
      TOTAL $535,360,318,035 $537,838,361,895


EPA Updates Information Resources Management Policy

The Environmental Protection Agency (EPA) is amending EPA Acquisition Regulation (EPAAR) clause 1552.211-79, Compliance With EPA Policies for Information Resources Management, to update terminology and website links.

This final rule makes the following changes to EPAAR 1552.211-79:



GSA Finalizes Information Technology Security Provision

The General Services Administration (GSA) finalizes, with changes, the interim rule that added GSA Acquisition Regulation (GSAR) Subpart 539.70, Additional Requirements for Purchases Not in Support of National Security Systems, and a corresponding provision and clause, GSAR 552.239-70, Information Technology Security Plan and Security Authorization, and GSAR 552.239-71, Security Requirements for Unclassified Information Technology Resources, to implement policy and guidelines for contracts and orders that include information technology (IT) supplies, services and systems with security requirements.

GSAR Subpart 539.70 requires that employees responsible for or procuring IT supplies, services, and systems (including contracting officers, contract specialists, project/program managers, and contracting officer representatives) possess the appropriate security clearance associated with the level of security classification related to the acquisition, and that contracting activities coordinate with requiring activities and program officials to ensure the solicitation documents include the appropriate information security requirements. Both GSAR 552.239-70 and GSAR 552.239-71 are to be included in solicitations and contracts that include IT supplies, services, or systems in which the contractor will have physical or electronic access to government information that directly supports the mission of GSA.

One respondent submitted comments on the interim rule and, as a result, paragraph (k), which addresses GSA access, is revised from “Access shall be provided to the extent required, in the government’s judgment, to conduct an IT inspection, investigation or audit…” to “Access shall be provided to the extent required, in GSA’s judgment, to conduct an inspection, evaluation, investigation or audit...”

For more on the interim rule, see the July 2011 Federal Contracts Perspective article “GSA Implementing IT Security Provision.”



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