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Breakout Session # 611 Debbie Eytchison, CFCM

The Procurement Integrity Act: Is the Government Promoting Unethical Business Practices?. Breakout Session # 611 Debbie Eytchison, CFCM Estimating & Contracts Supervisor, Exotic Electro-Optics Graduate Level W. Gregor Macfarlan Award Winner Date April 16, 2008 Time 2:40 pm – 3:40 pm.

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Breakout Session # 611 Debbie Eytchison, CFCM

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  1. The Procurement Integrity Act:Is the Government Promoting Unethical Business Practices? Breakout Session # 611 Debbie Eytchison, CFCM Estimating & Contracts Supervisor, Exotic Electro-Optics Graduate Level W. Gregor Macfarlan Award Winner Date April 16, 2008 Time 2:40 pm – 3:40 pm

  2. ABSTRACT If the government is privatizing more of their functions, are the rules and regulations truly being enforced or are violations being overlooked? In its efforts to streamline government procurement practices, it appears that the government may have reinstated the “old boy” network that was repealed with the enactment of the Procurement Integrity Act (PIA). The result is fewer contracts being awarded under full and open competition, thus increasing costs and promoting unethical business practices and unfair competition.

  3. HIGHLIGHTS • Evolution of the Procurement Integrity Act (PIA) • Procurement integrity and the importance of the role it plays • Government / Contractor relationships • Contract administration / management • Purchasing • Sales

  4. HIGHLIGHTS • Results of lack of integrity from both a government and contractor perspective • Accountability • Oversight • Need for training and enforcement

  5. RESEARCH • Types of research • History of government contracting • Contract administration guides and handbooks • Scholarly journals and articles • News articles • FAR • Contract Management Magazine

  6. RESEARCH • Purpose • Lays the groundwork for the life of the contract, beginning with the RFP • Basis of all ethical conduct in government contracting, including contract performance

  7. EXPECTATION • Prove that contractor community uses unethical business practices, regardless of regulations & ethics policies in place • Primarily small businesses “new” to government contracting • Government is the largest customer in the world • See only $$$, as a result many do not do their homework

  8. DISCOVERY • “Ignorance” on both sides of the table • Unfair competition or no competition • Favoritism and conflicts of interest • Lack of Efficiency • Confusion of rules and regulations • Inadequate evaluations • Lack of oversight

  9. CONCLUSIONS • PIA violated by both government and industry as a result of a broken procurement system • Industry • Solid corporate culture to include focus on ethics • Effective compliance programs • Need for continuing education & training

  10. CONCLUSIONS • Government • Loss of knowledge (retiring workforce) • Need for continuing education & training • Accountability • Privatizing of many government functions • Reduce the number of violations and protests • Additional research • Is privatization necessary?

  11. RECOMMENDATIONS • Address the issue of the retiring workforce and regain the knowledge desperately needed • Education & training • Mentor-Protégé program • Use of senior personnel and retired personnel as mentors • Alert to “burnout” issues

  12. RECOMMENDATIONS • Accountability • Monitor contractor performance • Government needs to be held accountable for not enforcing the rules • Modify / create ethics policies to include government contracting rules & ethics policies • Compliance programs • Additional rules & regulations confusing

  13. UPDATE:Accountability in Contracting Act • Establishes a federal acquisition workforce training program • Establishes Acquisition Intern Program • Establishes a Contingency Contracting Corps • Establishes acquisition and contracting training programs http://thomas.loc.gov/

  14. UPDATE:Accountability in Contracting Act • Requires acquisition workforce human capital succession plan • Limits length of noncompetitive contracts • Minimizes the use of cost-plus contracts • Requires guidance regarding linking award and incentive fees to acquisition outcomes • Requires public disclosure of justifications http://thomas.loc.gov/

  15. UPDATE:National Defense Authorization Act • Increased competition for task & delivery order contracts • Restrictions on multi-year contracting • Enhanced oversight on contractors performing in Iraq and Afghanistan Contract Management - March 2008

  16. UPDATE:Contractor Oversight Bill in Congress • Contracts and Federal Spending Accountability Act (H.R. 3033) • Public database on federal contractor performance & misconduct • Requires suspension and/or debarment of companies with 2 adverse actions in 3 years • Unfair to large businesses?

  17. UPDATE:Contractor Oversight Bill in Congress • Requires debarment of companies with significant tax debts from government contracts • Requires contractors to disclose names and salaries of top officers • How does this affect non-public companies? • Small businesses?

  18. QUESTIONS / COMMENTS?

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