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A review of
the November 14th
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AccureIT� |
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Table of Contents
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AccureIT� |
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1.0 Overview The FAA has commenced a competitive sourcing study of FSS operations under the auspices of OMB Circular A-76. NAATS has engaged the services of AccureIT Technologies Corporation (ATC) to consult with the union on government contracting issues. ATC, a veteran-owned small business, provides two principal consultants who have long DOD experience, are currently government contractors, and have many years experience in aviation as pilots and aircraft owners. 2.0 Revision of OMB Circular A-76 - Background OMB Circular A-76, first published in 1966, has been the government�s guidance that requires Federal agencies to outsource commercial operations. This, the most recent of four major revisions, was driven largely by the output of the Commercial Activities Panel, an ad-hoc committee of government, industry and labor experts who held 3 town meetings prior to developing their report. In that report, which was highly critical of the existing A-76 process, the CAP suggested making the A-76 process more �FAR-compliant�. 3.0 Specific Comparison Points Our review of this document indicates that there are 7 primary areas of interest to NAATS and it�s |
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members. In
brief, we�ll discuss each of the areas, which are listed in the table on
the right. Of most significance is the addition of an option to conduct a �Best Value� competition under FAR 15. This option, intended for the IT industry and which will require a waiver if the agency tries to use it for the FSS competition, would allow industry (and government) the ability to propose alternative staffing and locations. Additionally, it would allow the agency to consider technology insertion as evaluation criteria. The next item noted was the change to the |
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treatment of the
government bid. The MEO is now treated, under the FAR 15 option, just like
any other contractor. It can be deemed late (and rejected), or deemed
non-compliant (and rejected). Under the traditional �phased approach�,
which ATC believes that NAATS should be lobbying for, the MEO retains most
of its traditional protections. Regarding the MEO, it retains, in both options, the requirement for commercial bids to provide a 10% or $ 10 M advantage before they can be selected. The fourth item noted above is the new solicitation schedule. Requiring government to keep to a 1 year schedule, OMB is reacting to vehement industry objections to the common practice of A-76 competitions dragging on for two and three years. In some cases, they have dragged on so long that contractors were awarded wins for bids submitted so long ago, the option year pricing had expired! Although this new schedule appears to work against NAATS in that it will push the agency to restrict input to the process, |
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ATC believes that it may, in fact, have no teeth at all. We do not see any enforcement authority, and without that, it�s just words on paper. The continual competition requirement was somewhat of a surprise to industry and government sources. It now adds significantly to government�s contracting workload (good news if you�re a CO) and will also require government managers and unions to become proficient in the bidding process. Since industry has many years of experience in that area, it should result in a net gain for contractors, and work to the detriment of the union. The re-definition of inherently governmental calls for a basic philosophy shift that says unless declared otherwise, all government functions should be considered commercial in nature. Although this is a radical departure from current practice (reflecting the shift of political winds over the last two years� elections), it will have little net impact on NAATS. The argument over �inherently governmental� was pretty much settled last summer. Although NAATS may want to continue fighting that issue (NATCA was successful in that effort for almost six years), for the purposes of this A-76 it may be a moot point. Our last major point is in regard to the �right of first refusal�, which has a significant impact on member�s ability to continue earning a living if the contractors win. This requirement remains in force, as expected, since it�s roots are in labor law, not contracting. 4.0 Summary As expected, the revision to OMB Circular A-76 is extremely industry friendly. It requires government MEOs to compete on a more level playing field with contractors who have more experience at the bid and proposal process. Given that it provides the �best value� option now, it is incumbent on NAATS to make a decision on which option suits them better, and lobby hard for that. As for applicability, it is effective on January 1st of 2003, which means that it will apply to the current FSS study, as well as any new studies that the FAA chooses to start. |
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