With the end of the fiscal year comes the right of passage for government contracting personnel and contractors alike; the end-of year budget dump or as I like to call it, the end of fiscal year feeding frenzy. This time of year is characterized by the worst practices in federal contracting: lack of any real acquisition planning, abundance of improperly justified sole-source contracts, and the overall lack of meaningful competition.

Coming off the heels of a new report by GAO on the lack of competition, one clear issue is the woefully inadequate communication between industry and government.

The SBA takes the general position that a procuring agency does not need to document in a contract file any other prospective sources if the agency selects an 8(a) participant to perform the requirement, offers it to SBA, and SBA accepts the requirement into the 8(a) program. SBA officials note that it is the procuring agency's responsibility to conduct market research to determine whether the requirements of the Small Business Act can be met, and then to determine the appropriate contracting vehicle to use. However, SBA considers market research requirements to be satisfied when a participant in the 8(a) program self-markets its abilities to a procuring agency and is subsequently offered a sole source 8(a) requirement. When we discussed this issue with procurement policy officials at DHS, they said that, while these activities may meet the regulatory requirements, in practice they like to see additional market research so that the offer to the 8(a) firm has a more solid basis. {Emphasis added}

Get it off one's desk seems to be the prevailing attitude, along with the closing down of accepting any new requirements to handle the end-of-year rush to get dollars out the door. Is it just simple correlation that more procurement activity carries more risk of protest? If so, then something has gone wrong.

To improve competition and get meaningful best value outcomes, communication with potential vendors is an essential part of the market research process. Common forms include written exchanges of information (e.g., submission of marketing materials or responses to Requests for Information), in addition to also meetings with potential vendors.

However, it is the risk aversion and untrained contracting officials, combined with poor integration with program management and contracting that often makes this process difficult. A recent article in Government Procurement magazine shared a similar sentiment:

This concern can have a chilling effect on communication with vendors. In response to a request for a meeting prior to release of an RFP, one state official recently wrote: "If I meet with them even as an introductory meeting, then I assume they understand they will be precluded from bidding on any project we bid out the next six months." Is this level of concern by state and local officials warranted? We think clearly it is not.

Nor do I. In fact, Federal Acquisition Regulation (FAR) Part 15, "Contracting by Negotiation," balances the dual goals of "openness" and "integrity" in the procurement process by specifically encouraging pre-RFP meetings and exchanges of information between public officials and potential vendors. Good acquisition planning needs open communications, not to mention the FAR specifically identifies "one-on-one meetings" as an appropriate means of accomplishing these exchanges. Program Managers needs to ensure they know what is appropriate, and Contracting Officers need to provide this guidance and act as business advisors in this process. Simple processes to help alleviate end-of-year fiascos before they happen.

What really are the goals here? Openness, transparency, and fairness for starters. Procurement official must treat all potential vendors impartially and provide equal access to all. This ensures the process is fair. For these reasons, I believe initiatives like the Better Buy Project are an important tool to meet these procurement goals, since crowd sourcing is the foundation for access to all, along with Acquisition 2.0 tools that continue to provide the transparency and openness required of the contracting process.

An informed understanding of current industry capabilities and practices results in both better RFPs and better contracts, since industry will have participated in requirements development to ensure fairness, but also realistic objectives and schedules to also help ensure positive outcomes.

More communication with industry promotes more competition, better solutions and better pricing. Ambiguity in the final RFP translates to misaligned solutions or risk for a vendor who responds with higher pricing. The latest developments, especially in such complex fields as information technology, healthcare and environmental sciences, are difficult to harness unless you put industry competitors to work for you.

Let's capture innovation and stop reinventing the wheel, as I too believe it is ridiculous to think that government officials are so easily manipulated or influenced with these approaches that communications and Acquisition 2.0 initiatives will rig procurements. It is risk aversion and the lack of accountability indicative in the procurement process that acts as barriers to success. Continued advancements through Acquisition 2.0 pilots will hopefully not only demonstrate the potential of openness and transparency, but also provide guidance on transforming the way government does business and allow for accountability to the taxpayer, which should be the ultimate goal.

Why has it been so difficult to execute performance-based contracting? Certainly the complexities of modern-day service contracting play a part, but as Steve Kelman, former administrator of the Office of Federal Procurement Policy points out, it has been a frustrating and slow moving initiative making little headway in proper execution of these methods.

...There is one obvious reason for this: If you haven't included performance metrics in your contract, it involves a lot of work to change it into a performance-based contract when you go to recompete it. And there are other reasons. Sometimes it is genuinely difficult to develop relevant performance metrics for contractors, just as it is for in-house activities -- for example, what are relevant outcome-based metrics for State Department diplomacy? Finally, there is the sometimes vexing issue of changing and adding to performance metrics during the life of a long contract as technology and user requirements change...

The issue is beyond metrics, as it starts with understanding the outcomes and objectives of what performance-based contracting is all about. It requires a different mind-set, a different set of skills and capabilities, but most important, it involves understanding that culture is probably the biggest barrier of all.

The tools of the Acquisition 2.0 community can have a role in changing this culture, as one of the central tenets of this methodology is about collaboration, specifically between industry and the government. Using initiatives such as the Better Buy Project, outside parties, as well as those inside the government, can add value to the dialogue:

...Program managers need to recognize that some of the things that add to the time it takes to get a contract awarded are good investments that ensure faster and better execution of the contract in the long run. In that case, the evidence is overwhelming that using performance metrics -- whether for in-house or contracted activities -- can improve performance by motivating and focusing employees and facilitating feedback, which is a necessary tool for organizational learning. We need to bring those benefits to contracting...

Of course, determined leaders acting as change agents will always be needed to push for new ways of doing business. Deborah Broderick, the FBI's new senior procurement executive, seems to understand these responsibilities and has taken a lead in changing the culture at FBI and its mixed track records of procurement outcomes.

One of her approaches was to actively engage training where it counts, to help program managers, contracting officers, and the contracting officer's technical representatives in developing proper performance-based contracts with objectives at the time of actually writing the bid. This approach has allowed for innovation, and the ability to focus on outcomes. Further, the approach measures those outcomes through development of proper performance metrics and other contract provisions specific to the procurement in question and not generic metrics made for manufacturing or other boilerplate metrics that are used for the sake of speed and cutting corners. As Dr. Kelman points out, these methods will take time, and leaders must help offset the pressure for speed and sacrificing doing what is right. This pressure is often short-sighted, and may help contribute to the status quo; cost, schedule, and performance issues.

Acquisition 2.0 tools can help aggregate the ideas for performance metrics through crowd sourcing, as both industry and government know what has worked, but more importantly, what has not worked. We have to understand that performance-based contracting is not a silver bullet. However, when investments are made in these techniques, the return on that investment has the potential to be great, and go a long way in improving government management overall.

Let me first apologize to Andy Krzmarzick, as I have been promising a post on performance-based contracting and how it relates to the Better Buy Project and the Acquisition 2.0 initiative. I actually started that post, but put in on hold a bit as I found something of interest that I have also been meaning to discuss.

At the Better Buy Project forum at the National Association of Public Administration (NAPA) last December, I was discussing with Mary Davie of the General Services Administration the need to reform not only acquisition, but the Federal Acquisition Regulation (FAR) itself. We both commented that we often get curious looks when we mention this in conversation, but part of the rebuilding of the acquisition mission is to look at the FAR, as it seems ripe for an overhaul. In fact, the FAR can be fertile ground for change, and that change can certainly be done under the umbrella of Acquisition 2.0 tools and methodologies, much like performance-based contracting.

The FAR, in my opinion, has become a snake-pit of over-regulation; a maze of parochial interest. As lawmakers turned to help constituencies and thus narrow interests, or through well-meaning yet poorly planned and poorly though out policy, the current FAR is an example of simply how not to conduct world-class buying.

I was revisiting a wonderful piece of common sense approaches to reform by the Procurement Roundtable (PRT) that are very relevant to the current transformation discussion, not to mention illustrative of how difficult reform can be as the report is dated December, 1999.

The recommendation regarding policy guidance I believe to be spot on, and concur with the PRT that the way forward is much less regulation and far fewer detailed procurement laws. The reform process would work in an Acquisition 2.0 construct, where mission and broad policy statements commence the process of the final outcome; a digital, e-procurement guidance or FAR 2.0.

Under FAR 2.0, guidance should focus on outcomes and mission by concentrating on National or agency goals and objectives. This guidance would not be regulation, and would certainly not be details about how to perform the mission.

The next step is recreating FAR 2.0 would be a crowd sourcing initiative, much like the Better Buy Project. The acquisition community would be able to comment on eliminating the redundancy and over-regulation, focus on commercial best practices, and eliminate those existing statutes, agency regulations, and other directives that burden procurement and detail how to perform the mission. This approach is what the PRT referred to as a "zero-based" approach; which is to start with a blank sheet and add only what can be thoroughly justified.

Further input would of course be proposals for re-creating and streamlining the buying process, changing the new FAR to make it a "what, not how" model of world-class procurement. The rule for streamlining and creating FAR 2.0 would be to follow those commercial processes that allow for a fair and open acquisition process, and allow for real transparency and accountability to the taxpayer. This new process would be based on constant innovation; eliminating and revising any existing guidance or policy that does not allow for the leveraging of new information technology. The goal is to build an acquisition process for the 21st century, and executed by a right-sized and blended 21st century acquisition workforce with the right skills and capabilities to leverage this new process.

Not an easy task, no doubt. However, recognizing the institutional challenges that have hampered reform in the past are the first areas to attack by change agents and leaders who claim to want real, meaningful reform, and who are also demanding accountability and transparency. Some agencies will continue claiming uniqueness, and Congress may the biggest obstacle. However, the Acquisition 2.0 forum and the collaborative nature of this FAR 2.0 initiative can use the successes and lessons learned from Better Buy to involve all the concerned stakeholders, including the organizations that published the overly prescriptive guidance and have legitimacy to claims of uniqueness. Only by taking risks and exploring innovative ideas can we expect to see change that matters.

After attending the recent Better Buy Project panel this past week, I blogged about my observations and some issues that came up from that conversation.

That lively discussion continued on the GovLoop Acquisition 2.0 community. Although many commentators took different takes, I think we all agreed that one of the central tenets of successfully implementing Gov 2.0 can focus on one principal area: change management.

Like the Better Buy Project and all Gov 2.0 projects, these initiatives are typically undertaken to changing the overall business environment, and the federal procurement process for Acquisition 2.0. Whether trying to improve the requirements definition process, change roles, or define new ways of doing business, and effective Change Management Process is paramount to stress the benefits, demonstrate long-term value, and minimize the resulting impact on current projects.

Implement a Change Management Process in Gov 2.0

Unlike most projects with a typical project manager, I do believe in the need for the extra project leadership via change agents; committed leaders who are willing to take the risks associated with these initiatives and drive them to fruition. Due to the nature of the current environment in Government procurement (e.g. risk-aversion and status-quo mentality), change is a difficult pill to swallow. This mindset is further exacerbated by the perception of disrupting productivity, as the acquisition workforce has been forced to do more with less. Many past improvement initiatives have also not been driven by change agents, and thus go nowhere. In regards to Gov 2.0, many procurement officials feel they do not have the time to bother with yet another program from leadership that only makes one roll their eyes with the perception of no real value or benefit to helping one do their job better, faster, and cheaper; another passing fad. Thus the need for real commitment from the top and the change agents as demonstrated with Better Buy, as the project is showing real value and a commitment to execute.

Successful implementation will rest with Change Management, which is defined as the process of monitoring and controlling change within a project. By managing the implementation of Gov 2.0 initiatives in regards to acquisition, leaders can:

• Reduce the negative impact on current acquisition projects
• Identify new issues and risks, and implement lessons learned as a result of changes implemented during execution
• Ensure that implemented changes do not affect overall desired objectives and outcomes
• Control cost of implemented changes

Successful Change Process: A Four Step Model

Change Management in itself is a project within a project. It is already being executed at the General Services Administration (GSA), where projects are actively being sought to pilot the inputs from Better Buy users. Nonetheless, implementing and executing on Gov 2.0 initiatives can follow these Change Management steps:

Identify: The first step in the change process is to identify the need for change, which is apparent in federal acquisitions. This is the overall objective of the Better Buy Project, where any member can suggest a change to the process. Some of the discussion at the panel included capturing statistical data of the user community and their input. However, it is the relevancy of the input that is most important. Further, anonymity can be a powerful tool to providing desired input, free from possible managerial reprisals. The Better Buy Project will hopefully serve as a template for capturing input for change, and helping leaders identify needed focus on process improvements and areas to retool business operations. The Securing Americans Value and Efficiency (SAVE) program is another example of real benefit through collaborative processes, although these types of tools should be done with more frequency. Identifying the need to change is driven by value added; describing the change, and identifying drivers, benefits, costs and likely impact of the change on the project, process, or agency.

Review: This is what the Better Buy Project is currently doing in its Phase II, which is to investigate the recommended changes to identify feasibility and impact, both long and short-term. GSA experts are looking for the low-hanging fruit, and those suggestions that can be successful delivered to have the greatest impact with the least disruption. Normally changes which are not critical to project delivery should be avoided whenever possible to prevent "scope creep," but the Web 2.0 construct seemingly turns this project management dictum on its head. Implemented changes will have impact on project delivery, specifically by buying better, faster, cheaper. It is the disruption on current delivery that can not suffer, and why Butter Buy implementation will be so difficult. Finding ways to implement gradual change is preferred, as lessons learned can be studied, reviewed, and implemented with more meaningful impact.  

Approve: Experts have to review the recommended changes and input, as some recommendations are real and others use these forums as an outlet for venting frustration. Nonetheless, it is the naysayers that can also have value on the conversation, as they may point things out that are not always clear to those who are committed and engaged towards success. As discussed at the panel, the suggestions on Better Buy with the greatest number of votes does not necessarily mean ranking, so leaders do need to weigh the value of the input. More importantly, these decisions need to be communicated to the user community, as members should be able to see what input is being considered, and what is not. Ultimately, these decisions should be based on the level of risk, impact, benefits and cost to the overall project or process, and the decision may be to decline, delay or approve the change request. Either way, this level of communication and transparency can go a long way to refining input. More importantly, input will hopefully keep coming as users can see execution is the real end goal, and the initiative is a worthwhile investment of time to participate.

Implement: Here is another way to use collaboration tools with user input. Who knows best on the projects or processes that can be improved than users? Of course members will no doubt vent some more, but that is why input is vetted by experts and leaders to ensure the cream rises to the top. Leadership needs to ensure proper input gets implemented, and also ensure that proper communications strategies are put in place such that changes are scheduled and implemented accordingly. After implementation, leadership, helped with the users, can review the effects of the change on selected  project and processes to ensure that they have achieved the desired outcomes. This in effect creates a change agent community, which helps leadership further communicate outcomes and execute more efficiently. Further, these successful changes then need to be broadly communicated to the overall Gov 2.0 community, to further build bridges and roadmaps for successful implementations across Government.

Throughout a sound Change Management Process, Government leaders can monitor and control changes to selected projects and processes by communicating often, and in turn ensuring that communication is broadcast using the same collaboration tools and keeping track of changes that have been accepted, rejected, or in review. This in effect creates a transparent, up-to-date Change Register.

By completing these steps, Government leaders can carefully monitor and control project and process changes, which in turn increase the likelihood of success. I look forward to further actions by the Better Buy Project, and other initiatives that are leading the way in changing how the Government operates.