Current View on Federal Procurement (September 2011) What’s Coming and What’s Going?

1. NATIONAL CONTRACT MANAGEMENT ASSOCIATION Current View on Federal Procurement (September 2011)What’s Coming and What’s Going? Ronald S. Perlman, Esq. Government Contracts Practice GroupPennsylvania Avenue, Washington, DC September 8, 2011

2. RTP NCMA SEP2011 Overview of Federal Government Contracting Situation Currently “Myth-busting” Protests and Claims Increasing New Disclosure Requirements Investigations Increasing The Budget and the Future The 2012 Presidential Election Does anybody care about the 1102’s any more?

3. 2011 Pennsylvania Avenue View on Contracting • Contracting is viewed as a serious chink in the national security armor. Civilian agency focus is secondary • Nobody (still) knows what is going to happen to the budgets. • Investigations are beginning, with a fervor. • Big contractors versus small and mid-tiers; DOD versus DOS, DHS and everybody else. • The budget is the news; Iraq, Afghanistan, GM and Ford are not • The Presidential Election Cycle has begun. • The young 1102s are making life miserable. • Training the Acquisition Workforce has been the subject of much discussion.

4. History of a Protest: The IMSG Case The debriefing The Protest The Agency Response The Supplemental Protest The Agency Response to the Supplemental Protest The GAO Decision

5. Procurement Conclusions • Everything is secondary to the budget issues. • We finally have refueling tankers. • The young 1102’s are coming; the old ones are staying. • The investigations are ramping up. • In-sourcing is a dead issue • Cost type contracts are still under attack. • T&M contracts are also under attack. • Sole source contracts are also under attack. • “Change” is being institutionalized. • Paradigm shifts are being sought

6. Procurements and Protests The Statistics The View from the Hill The View from the White House The View from the Agencies The View from the Companies

7. Sole-Source Contracting • The numbers in actions and in dollars • From the agencies -- how many/how much • At the GAO and in the Courts – how many protests/how many sustained • The Point • Large dollars are spent sole-source; they are not per se either efficient or inefficient • Large numbers of contracts are awarded on a sole-source basis; virtually none are protested

13. 2011 Procurement Conclusions We finally have refueling tankers (at least a contract). The young 1102’s are still coming; the old ones are still staying. The investigations are still ramping up. ‘In-sourcing’ is out; ‘myth-busting’ is in; nobody knows what ‘efficiency’ means. Recapitalization versus new build issues. SB rhetoric is on the rise. T&M and cost type contracts are still under attack. Sole source contracts are still under attack. “Change” is being institutionalized.

14. Contact information Ronald S. Perlman, Esq. • Partner, Government Contracts Practice Group • Holland & Knight LLP2099 Pennsylvania Avenue, NW Washington, DC 20006 Direct  202-419-2420 Fax  202-955-5564 • Email  ronald.perlman@hklaw.com