Outsourcing vs. Insourcing: Solving the Cost-Comparison Conundrum

Defense and civilian agencies often fail to consider a range of administrative costs when comparing contractors’ and federal employees’ proposals for work, a problem that can lead to unexpected costs.

As the Defense Department looks to minimize spending, it's often impossible to compare contractors’ costs and in-house overhead expenses, because policies do not include expenses outside the realm of a statement of work. DOD Workforce Cost Realism Assessment.

The problem is that no one knows what to include when comparing contractors’ and federal employees’ expenses. “The challenge for determining an adequate overhead rate starts with the definitional question of what constitutes overhead. There does not exist a universally accepted definition of what costs are subsumed under overhead.

Even so, a single definition that would cover the vast expanse of federal work is suspect.

But when budgets are strained, officials need a data-driven approach, with verifiable results, to make good decisions on allocating resources. Then they can also understand the implications of how they’re spending their funds, including the associated costs.

How FAR is the FAR when Devastation is involved?

Early part of March 2011, I realize just how far the FAR (Federal Acquisition Regulation) traveled. I spend an enormous amount of time researching and understanding the Federal Acquisition Regulation and other government regulations to support the goals and objectives of government agencies contracting departments as well as contractors attempting to do business with the government. What got my attention during my research and training is that this regulation among others stretches beyond the United States.

Places located in the Asian Pacific known as Yokosuka Japan, the home of the Commander Navy Installation Command (CNIC) is also required to comply with this regulation.   

I was selected to provide a series of training to the U.S. Fleet & Industrial Supply Center (FISC) Contracting Office at Yokosuka Japan in February 2011 with a delivery date of March 9 thru 11 2011, very significant dates. The training consist of a three day training workshop that covered; File Documentation, Sources Sought Justification and Fair & Reasonable Price Determination. Once I received the notice to proceed, I immediately started researching regulations outside, the FAR requirements that supported training foreign US Commands Contracting Departments. For the Asia Pacific, outside of the Defense Federal Acquisition Regulations (DFARS) and the Code of Federal Regulation (CFR), I had to brush up on the Navy Marine Corps Acquisition Regulations Supplement (NMCARS) and the U.S. Fleet & Industrial Supply Center Acquisition Supplement.

 After conducting such a detailed assessment of other regulations requirements, I decided to research things to do in Japan and what the weather would possibly be like. I wanted to ensure I got some site seeing in and I wanted to dress appropriately while in Japan. The forecast weather was determined to be high 40 degrees for that area during my visit and there were plenty of sites to see. I was more than ready to complete my workshop before even getting started. 

The Youth is the Future of Government Contracting

One of the most exciting things that I “get to do” is talk to young people and encourages them to consider pursuing a career in government contracting. Maximizing their skills at a young age and preparing their career as a Government Contractor will enhance their possibilities to become tomorrow’s government entrepreneurs. These opportunities have become more important in recent years, the federal government as an organization is looking for more innovated ways to incorporate youth into their acquisition programs. Doing business with the government has always had an open lane for anyone with the services, products and proper business model, even the youth of today. 

More and more state, local and federal government agencies are creating funding and contracting opportunities to support youth involvement. Bringing an education awareness program to support youth participation will enhance the possibilities of job creations for youth and bring innovated ideals to our government acquisition programs. There are several ways that youth can involve themselves in government contracting, 1) serve as a government contracting officer or contracting specialist, 2) providing a service or a product to the government for purchase and 3) become a supporter of small business doing business with the government.  

5th Annual MBC Scholarship Walk-A-Thon Presents Dannie James, Sr.

The Stimulation Show I - The Inside Scoop 05/11 by Jeff Packer | Blog Talk Radio

 
The Stimulation Show I - The Inside Scoop 05/11 by Jeff Packer | Blog Talk Radio

Business 101- Radio Interview with Dannie "The Coach" James, President of Business Government CoachSultants, Inc. (GBC)

3 New SBA Rules Affect Small Businesses in Significant Ways:

Newly-published rules by the Small Business Administration (SBA) address the justification and approval process associated with large sole-source contract awards to 8(a) firms; address parity among 8(a), HUBZone, and SDVOSB firms; and propose increases in the small business size standards for some industries.  Public comment is being solicited on the last item.

Specifically, the rules:

1.     Require federal agencies to issue a Justification and Approval prior to the award of 8(a) sole source contracts over $20 million;

2.     Clarify a contracting officer’s ability to use discretion when determining whether an acquisition will be restricted to small businesses participating in the 8(a), HUBZone or service-disabled veteran-owned small business (SDVOSB) programs; and

3.     Propose increases in the small business size standards for dozens of service industries in NAICS codes 54 and 81. 

The first two rules were issued as interim rules by the SBA and the Federal Acquisition (FAR) Council, and are effective immediately.  The third item is a proposed rule.  All were published on March 16, 2011 in the Federal Register.

7 Keys to Winning More Business in Today's Market

The primary challenge of developing or optimizing an automated business development and capture management process relates to people, not technology. However, overcoming cultural resistance is easier by following these steps.

1. Think big picture. Business development is everyone’s responsibility “Employees, no matter their role, ought always to be thinking about how the company can provide greater value and looking for customer pain points.”
2. Take the lead. That culture needs to start with top executives, who need to take the opportunity to understand their business capture capabilities and gaps, keep a hand in the development of a good process and pound the pulpit on business development.
3. Know thyself. Many employees are subject-matter experts in their own narrow subjects. To get better at identifying business opportunities, companies should train employees on all of the core capabilities of the company and how they work in tandem to provide value to potential customers.
4. Know your customer. By the same token, employees should be encouraged to understand the vision, mission and tasks of customers and potential customers.
5. Simplify whenever possible. Require the minimum number of steps to be effective.
6. Accept help. When possible, companies should consider investing in dedicated resources to manage the business development process.
7. Train, train, train. Whatever tools are chosen, whether commercial, customized or homegrown, employees — across the enterprise, from top executives to administrative staff members — need to be educated on how to use them in the context of the company’s individual business development process.