Better Contracting, Better Outcomes

August 20, 2024 

Presented by NCMA

Energizing the Contracting Community for Better Outcomes

Kraig Conrad, CEO of the National Contract Management Association (NCMA), shares his vision for enhancing the effectiveness of federal contracting through a renewed focus on hands-on training and early collaboration. Speaking from the NCMA World Congress, Conrad outlines the association's commitment to providing contracting professionals with practical tools and experiences that they can take back to their workplaces. He emphasizes the value of workshops, simulations, and other interactive training methods that allow participants to "train as they fight," preparing them to tackle real-world challenges with confidence and creativity.

Conrad highlights NCMA's role as an ANSI-accredited standards-developing organization, which positions the association to lead the way in establishing global standards for contract management. He discusses the importance of these standards in creating a common language and framework across different agencies and industries, facilitating smoother and more efficient contracting processes. By moving toward ISO certification, NCMA aims to elevate the contract management profession to the level of other globally recognized fields such as accounting and finance.

In addition, Conrad stresses the importance of early and comprehensive involvement in the acquisition process. He advocates for initiatives like the Better Contracting Initiative, which encourages stakeholders to collaborate from the beginning of a project, including program managers, contracting officers, and post-award professionals. This holistic approach ensures that all aspects of the acquisition process are considered from the outset, leading to more effective and timely contracting outcomes.

Key Takeaways:

1. Practical training methods such as workshops and simulations are crucial for preparing contracting professionals to innovate within regulatory frameworks.
2. NCMA's efforts to establish global contract management standards aim to create a unified, efficient approach to contracting across agencies and industries.
3. Early and inclusive collaboration in the acquisition process is essential for achieving better contracting outcomes.

Accelerating Innovation Through Agile Contracting

Efstathia "Effie" Fragogiannis, Director of Contracts and Senior Procurement Executive at DARPA, highlights DARPA's pioneering efforts to streamline the contracting process, thereby fostering innovation and attracting non-traditional defense contractors. Fragogiannis shares DARPA's "Pitch Day" initiative, a program designed to expedite the contracting process by allowing same-day evaluations and contract awards. This initiative is part of a broader effort to reduce barriers to entry for small businesses and non-traditional contractors, ensuring that DARPA can tap into a wider pool of innovative solutions.

The "Pitch Day" initiative involves a collaborative effort across multiple offices within DARPA, including contracting, program management, and public affairs. By inviting potential contractors to present oral pitches and making decisions on the spot, DARPA has successfully awarded contracts to small businesses that had never before worked with the agency. This approach not only speeds up the contracting process but also creates opportunities for fresh ideas and technologies to enter the defense sector.

Fragogiannis also discusses the cultural shift within DARPA's contracting office, where there is a strong emphasis on empowering professionals to embrace risk and creativity. This culture of innovation is supported by leadership that encourages employees to step out of their comfort zones and explore new approaches to contracting. To ensure the success and scalability of these initiatives, DARPA conducts extensive after-action reviews, gathering feedback from all participants and refining processes for future iterations.

Overall, DARPA's approach demonstrates how agile contracting practices can drive innovation while maintaining rigorous standards. By fostering a culture of collaboration and creativity, DARPA is setting a new standard for how federal agencies can engage with the private sector.

Key Takeaways:

1. DARPA's "Pitch Day" initiative accelerates the contracting process by enabling same-day evaluations and awards, attracting non-traditional defense contractors.
2. A culture of innovation, supported by leadership, is essential for empowering contracting professionals to embrace risk and creativity.
3. Continuous improvement through after-action reviews and tailored processes helps scale successful contracting initiatives across the agency.

Transforming Acquisition Through Data and AI

Geoff Sage, Director of the Enterprise Service and Analysis Division at NASA, provides an in-depth look at how NASA is transforming its acquisition processes through the strategic use of data and artificial intelligence (AI). Sage explains that NASA's acquisition transformation is a multi-year effort focused on improving data collection, analysis and integration across the agency. By leveraging AI and other advanced technologies, NASA aims to optimize procurement decisions, enhance transparency, and ensure that its acquisition practices are both efficient and effective.

Sage highlights the implementation of NASA's "Better Contracting" initiative, which is central to the agency's broader digital transformation strategy. This initiative involves the use of AI tools to automate routine tasks, such as price analysis and contract management, freeing up human resources for more strategic activities. For instance, NASA is using AI to analyze prices paid across different centers, ensuring consistency and identifying opportunities for cost savings. Additionally, AI is being employed to streamline the procurement process, reducing the time and effort required to complete complex tasks.

A key component of NASA's transformation is the focus on workforce training. Sage discusses the agency's "Summer of AI" initiative, which is designed to familiarize employees with AI tools and techniques through hands-on training and hackathons. This initiative aims to empower NASA's procurement professionals to use AI effectively in their daily work, ensuring that technology enhances, rather than hinders, the acquisition process.

Sage also touches on the importance of rethinking business processes before digitizing them. NASA has taken a holistic approach to its transformation, reviewing and refining procurement practices to ensure that they are aligned with the agency's long-term goals. By focusing on both technology and process improvement, NASA is setting the stage for a more agile and responsive acquisition system.

Key Takeaways:

1. NASA's acquisition transformation focuses on leveraging data and AI to optimize procurement decisions and enhance process efficiency.
2. Workforce training, such as the "Summer of AI" initiative, is critical to ensuring that AI tools are effectively integrated into the acquisition process.
3. Rethinking and refining business processes before digitization is essential for achieving long-term success in acquisition transformation.

Rebuilding Industry-Government Collaboration Post-COVID

Lisa Lax, Vice President of the Contracts and Acquisition Management Office at GDIT, discusses the evolving nature of industry-government collaboration in the wake of the COVID-19 pandemic. Lax observes that while virtual communication tools like Zoom and Teams have enabled continuity of operations, they have also led to a decline in the quality of face-to-face interactions that are critical for effective collaboration. This shift has made it more challenging to resolve complex acquisition issues and foster the close relationships necessary for successful contracting.

Lax emphasizes the need to revive in-person communication to address emerging challenges in the contracting landscape, particularly in areas like cyber hygiene and the integration of AI in proposal writing. She argues that the loss of interpersonal connections has made it difficult for industry and government to engage in the deep, candid discussions needed to navigate these complexities. To address this, Lax advocates for a return to more frequent and meaningful in-person engagements, where stakeholders can build trust and collaborate more effectively.

Lax also highlights the importance of having strong leadership champions within both government and industry to drive this shift. She notes that without such champions, efforts to improve collaboration may falter. Lax also points out the need for industry players to put aside competitive concerns and work together on issues of common interest, such as cybersecurity and AI integration. By fostering a more collaborative environment, both industry and government can better address the risks and opportunities presented by new technologies.

Ultimately, Lax's insights underscore the critical role of communication and collaboration in the contracting process. As the contracting landscape continues to evolve, restoring and enhancing these relationships will be key to achieving better outcomes for both government and industry.

Key Takeaways:

1. The shift to virtual communication during the COVID-19 pandemic has reduced the effectiveness of industry-government collaboration, particularly in resolving complex acquisition challenges.
2. In-person interactions are crucial for building trust and fostering deep, candid discussions on emerging issues like cyber hygiene and AI integration.
3. Strong leadership champions within both government and industry are needed to drive a revival of effective collaboration and address shared challenges.

Aligning Procurement with Agency Priorities at SSA

Adam Goldstein, Associate Commissioner and Senior Procurement Executive at the Social Security Administration (SSA), provides a detailed overview of how the agency's procurement team is aligning its efforts with the strategic priorities set by Administrator Martin O'Malley. Under O'Malley's leadership, SSA has focused on using procurement as a tool to support key initiatives, such as reducing overpayments and underpayments, and improving the processing times for disability claims. Goldstein highlights specific examples, such as the award of 54 contracts for electronic death records and the implementation of a new streamlined contract for physician services, which are directly tied to these priorities.

Goldstein explains that effective acquisition planning is crucial for aligning procurement with changing agency priorities. He describes how the SSA procurement team works closely with program offices to assess existing contracts and identify new opportunities as priorities evolve. This proactive approach ensures that SSA can quickly adapt to new directives and continue to meet its mission-critical goals.

A significant aspect of SSA's procurement strategy is its commitment to small business participation. Goldstein notes that in FY 2023, SSA awarded 34% of its prime contracting dollars to small businesses, a significant increase from previous years. This achievement is largely due to targeted efforts in the IT sector, where SSA has successfully moved significant contracts from large businesses to small business vehicles. Goldstein emphasizes the importance of early and continuous collaboration between contracting staff and program offices to identify opportunities for small businesses and ensure that SSA meets its socio-economic goals.

Looking ahead, Goldstein acknowledges the need for ongoing flexibility and resilience within the procurement team as agency priorities continue to shift. By staying aligned with these priorities and maintaining a strong focus on small business participation, SSA's procurement team is well-positioned to support the agency's mission and deliver value to the American public.

Key Takeaways:

1. SSA's procurement team is strategically aligning its efforts with agency priorities, focusing on initiatives like reducing overpayments and improving disability claim processing times.
2. Effective acquisition planning and close collaboration with program offices are key to adapting procurement strategies to evolving agency directives.
3. SSA has significantly increased small business participation in its contracts, particularly in the IT sector, through targeted efforts and early engagement with small business vendors.

Building a Stronger Acquisition Workforce at DHS

Polly Hall, Senior Advisor to the Chief Procurement Officer at the Department of Homeland Security (DHS), addresses the pressing need for talent within the federal acquisition workforce and the strategies DHS is employing to attract and retain skilled professionals. Hall acknowledges that DHS, like many federal agencies, faces challenges in filling vacancies and competing for top talent. To address this, DHS has adopted a strategic approach that goes beyond simply filling positions; it focuses on cultivating a workplace culture that attracts new talent and encourages long-term career development.

Hall explains that DHS is committed to fostering a culture that emphasizes innovation, empowerment, and collaboration—key pillars of the agency's procurement strategy. By creating an environment where employees feel valued and supported, DHS aims to not only attract new talent but also retain experienced professionals who can drive the agency's mission forward. A central part of this strategy is the DHS Procurement Culture Survey (PCS), which was introduced in 2018 to measure the agency's procurement culture and track changes over time. The survey evaluates key values such as innovation, mission focus, and teamwork, providing leaders with actionable data to guide their efforts in improving workplace culture.

Hall highlights the importance of leadership accountability in this process. DHS leaders are expected to use the PCS data to develop and implement plans for enhancing their teams' culture. This approach ensures that improvements are driven by real data and tailored to the specific needs of each contracting activity within the agency. Hall also notes that DHS's mission, which encompasses a wide range of critical functions from natural disaster response to cybersecurity, is a strong attractor for potential recruits. By clearly communicating the importance and diversity of DHS's mission, the agency hopes to inspire a new generation of procurement professionals to join and build their careers within the federal government.

Key Takeaways:

1. DHS is focused on attracting and retaining talent by fostering a workplace culture that emphasizes innovation, empowerment, and collaboration.
2. The DHS Procurement Culture Survey (PCS) is a key tool for measuring and improving the agency's procurement culture, providing leaders with actionable data to guide their efforts.
3. Leadership accountability and a strong focus on DHS's diverse mission are central to the agency's strategy for building a resilient and skilled acquisition workforce.

Advancing Small Disadvantaged Business Participation at NASA

Karla Smith Jackson, Assistant Administrator for Procurement at NASA, discusses NASA's ongoing efforts to increase participation by small disadvantaged businesses (SDBs) in its contracts, as part of the federal government's broader goal of achieving 15% SDB participation by 2025. Jackson notes that NASA has already made significant progress, reaching 12% SDB participation in the previous fiscal year, and outlines the strategies the agency is using to close the remaining gap.

One of the key areas of focus for NASA is research and development (R&D) services, where the agency sees considerable opportunities for SDBs. Jackson explains that NASA, in collaboration with the Small Business Administration (SBA), has formed a subcommittee within the Interagency Policy Council (IPC) to share best practices and develop policies aimed at increasing SDB participation across the federal government. This collaborative approach allows agencies to learn from each other and implement effective strategies to boost SDB engagement.

Jackson also highlights NASA's Acquisition Innovation Launch Pad (NAIL), which is being relaunched with a renewed focus on leveraging artificial intelligence (AI) and other advanced technologies to streamline the acquisition process. The NAIL initiative is designed to foster collaboration between NASA and industry, encouraging the submission of innovative ideas and solutions that can be tested and refined in a controlled environment. Jackson believes that by creating a space where failures are seen as learning opportunities, NASA can drive significant advancements in procurement practices, particularly in areas that have traditionally been dominated by large businesses.

Moreover, Jackson discusses the importance of maintaining a culture that actively seeks out and supports small businesses. She points to NASA's success in awarding contracts for traditionally large-scale projects, such as the development of deep space suits, to small businesses. This shift not only diversifies the contractor base but also injects fresh ideas and approaches into NASA's mission-critical projects.

Key Takeaways:

1. NASA is focused on increasing small disadvantaged business participation in its contracts, with significant progress already made in the R&D services sector.
2. The relaunch of NASA's Acquisition Innovation Launch Pad (NAIL) aims to drive procurement innovation through collaboration and the use of advanced technologies like AI.
3. Maintaining a culture that actively supports small businesses is crucial for diversifying NASA's contractor base and fostering innovation in mission-critical projects.

Navigating AI's Role in Government Procurement

Jessica Tillipman, Associate Dean for Government Procurement Law Studies at George Washington University Law School, offers a nuanced perspective on the integration of artificial intelligence (AI) into government procurement. While acknowledging the potential benefits of AI, such as increased efficiency and enhanced risk management, Tillipman also expresses caution about the challenges and risks associated with this technology. Her approach is one of "guarded optimism," recognizing both the promise and the pitfalls of AI in the complex and highly regulated field of government procurement.

Tillipman is particularly focused on how AI can be used to promote integrity and reduce risk in procurement processes. For example, AI tools can automate the detection of outdated or incorrect clauses in contracts, streamline responsibility determinations, and synthesize large amounts of data, such as past performance evaluations. These applications can significantly reduce the time and effort required for these tasks, leading to more efficient and effective procurement processes.

However, Tillipman also raises concerns about the potential for bias in AI systems, especially if the data used to train these systems is flawed or biased. She emphasizes the importance of rigorous oversight and the need for agencies to fully understand the capabilities and limitations of AI tools before deploying them. Tillipman argues that without proper safeguards, there is a risk that AI could inadvertently perpetuate or even exacerbate existing biases in the procurement process.

Tillipman advocates for a more inclusive approach to the development and implementation of AI in procurement. She believes that diverse perspectives, including those of legal experts, should be included in discussions about AI to ensure that ethical and legal considerations are adequately addressed. As AI continues to evolve, Tillipman calls for ongoing training and education for procurement professionals to ensure they are equipped to use these tools responsibly and effectively.

Key Takeaways:

1. AI has the potential to enhance efficiency and reduce risk in government procurement, but it must be deployed with careful oversight to avoid unintended biases.
2. The integration of AI in procurement requires a thorough understanding of the technology's capabilities and limitations, as well as robust ethical and legal safeguards.
3. Including diverse perspectives in the development and implementation of AI in procurement is essential to ensuring that the technology is used responsibly and effectively.