The new administration is imposing new reviews prior to award on numerous contracts in various departments and agencies. DHS Secretary Kristi Noem has implemented an agency requirement that contracts valued at $100,000 + must be signed off in her office before award.
The new policy will affect three key parties in the federal procurement process:
- Program officers, administrators and end users who specify their requirements, prepare requisitions and need the items to do their work
- Contracting officers, contract specialists and buyers who prepare the paperwork and issue RFPs and IFBs and select the awardees
- Contractors, who prepare proposals, set pricing, bid in good faith and deliver the products and/or services on-time according to the contract terms
We have known for some time – years, actually – that there is a shortage of contracting personnel. And many such employees are nearing retirement.
The added layer of approvals will slow the award process. Both the Requisitioners and the Contractors need to anticipate these delays and their impacts. Whether it’s increasing stocking levels in advance to avoid running out key supplies, sharpening your pencil on your bid to be sure that prices will still provide margin in the event of delays, or reading Price Escalation clauses and other boilerplate carefully, the responsibility will end up back at the local level and not in the Secretary’s officer.
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