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MBrown

Service Contracts targeted for budget reductions?

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http://www.acq.osd.mil/dpap/policy/policyvault/USA005536-12-DPAP.pdf

The January 14, 2013 Memo from DPAP starts with "As [DoD] identifies and executes budget reductions critical to support the President's agenda, it is important to be able to trace contract expenditures for services." This Memo goes on to require the use/identication of Product Service Codes at the Purchase Request level, notwithstanding their use at the contracting/obligation level. Does anyone have any thoughts on how this might be utilized to further limit the use of service contracts?

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http://www.acq.osd.m...536-12-DPAP.pdf

The January 14, 2013 Memo from DPAP starts with "As [DoD] identifies and executes budget reductions critical to support the President's agenda, it is important to be able to trace contract expenditures for services." This Memo goes on to require the use/identication of Product Service Codes at the Purchase Request level, notwithstanding their use at the contracting/obligation level. Does anyone have any thoughts on how this might be utilized to further limit the use of service contracts?

Currently, all service contract actions of most federal agencies are entered into the FPDS after the action is completed. The FPDS entries include the Products or Service Codes (PSC). Thus, most federal service contract obligations are being tracked in a common contracts' database that is generally accessible by contract types.

The DPAP Memo requires that the PSC Codes be entered at the time the funding document (i.e. purchase request) is created. My assumption is that the goal is to give the financial managers, as well as the contract types, visibility of commitments made. Thus, if cuts come by PSC Code, the financial managers will have visibility via their financial management systems of all commitments and obligations for all transactions involving service contracts.

This information should facilitate the identification by the financial managers of all proposed and completed service contract actions. This will make it easier to cut funding for service contracts.

This link may interest you: http://www.acq.osd.mil/dpap/dars/docs/USA006267-10-DPAP.pdf.

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Interesting, but I'm not sure how this is attainable in certain situations. For example - a customer of mine called yesterday indicating its sponsor would only provide funding if the PSC code identified in NAVY ERP matched the PSC code reported on the contractual action (incremental funding modification in SEAPORTe). The Task Order itself has a PSC code that best fits the scope of work, but clearly individual increments are tied to specific requirements where a more specific PSC can be identified. When completing an incremental funding modification, we would not modify the PSC code used when the Task Order was placed and FPDS would report the PSC used at time of award - not the the PSC code identified on the PR.

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Interesting, but I'm not sure how this is attainable in certain situations. For example - a customer of mine called yesterday indicating its sponsor would only provide funding if the PSC code identified in NAVY ERP matched the PSC code reported on the contractual action (incremental funding modification in SEAPORTe). The Task Order itself has a PSC code that best fits the scope of work, but clearly individual increments are tied to specific requirements where a more specific PSC can be identified. When completing an incremental funding modification, we would not modify the PSC code used when the Task Order was placed and FPDS would report the PSC used at time of award - not the the PSC code identified on the PR.

Well, good luck! You are going to have to work with your FM folks and your customer because the PSC code put on the requisition must match the one that goes on the FPDS report after you issue the incremental funding mod.

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How many customers even know what a PSC is? None that I know of at my agency.

We in the contracting office correct the codes before award and we have an oversight shop to do random QC of our work. The HCA has to certify FPDS accuracy and my HCA uses the QC report to back her certification.

The memo wants the PSC codes by line item but that will not be captured by FPDS which wants the code of the perdominate cost driver.

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How many customers even know what a PSC is? None that I know of at my agency.

We in the contracting office correct the codes before award and we have an oversight shop to do random QC of our work. The HCA has to certify FPDS accuracy and my HCA uses the QC report to back her certification.

The memo wants the PSC codes by line item but that will not be captured by FPDS which wants the code of the perdominate cost driver.

One of the goals of the 14 January memo is to make the contracting officer responsible, by the 3rd quarter of this FY, for coordinating with the requiring activity any changes to any PSC determinations. Since FPDS does not capture PSC codes by line items and since the 14 January memo refers to the purchase request data standard, I assume that the line item details will be pulled from the FM systems, not the FPDS.

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