China Lake/Ridgecrest Chapter
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March Lunch Speaker
The China Lake/Ridgecrest Chapter of NCMA is proud to present Mr. Rich Abele as the guest
speakers for the March Lunch Meeting. For a change of pace, Mr. Abele will sharing his recent
experiences in Mont Blanc, and New Zealand/Australia.
When: Tuesday, 14 March 2006 (11:15AM)
Where: US Naval Museum (Exhibit Center)
Cost: **$11.00 members, $12.00 non-members **(New Price)
RSVP: Mary Jacobs, 939-6043 firstname.lastname@example.org
Rich Abele is a former Contracts and Export Compliance professional who supported various military
aircraft production programs including the B-1B bomber and the C-17 airlifter at Rockwell International
Corporation and most recently The Boeing Company in Long Beach, CA. He retired in 2005 after 32
years of service. Rich is also a retired Navy Captain who served two tours in Vietnam.
Rich is a member of NCMA's Los Angeles-South Bay Chapter where he has held many elected offices
including Chapter president. He served as the National Vice President of the South Western Region in
1997-98 and has subsequently held numerous appointed regional and national leadership positions.
Rich is a recipient of NCMA three highest awards: Fellow, the 2002 Charles A. Dana Award and the
2005 Honorary Life Member Award.
An avid outdoor adventurer and former marathoner, Rich has traveled to and run on all seven
continents and continues to trek in many remote and distant lands. His recent trips have included the
Everest Basecamp in Nepal, High Inca Trail in Peru, Patagonia in Chile and Argentina, and last month a
return visit to Australia and New Zealand. When not traveling, Rich is active in the BLM's Adopt-a-Cabin
program which is headquartered in Ridgecrest, CA.
THANK YOU to all the members of the China Lake-Ridgecrest Chapter for continuing to renew your
Our Chapter’s membership is currently maintaining a proud 63-member enrollment. It is your continued
support that allows us to sustain our membership.
Our Chapter extends a special ―Thank yous‖ to Chuck Faris who renewed his membership for 5-years
and Denny Solomon who renewed for 2-years. DCS employs Mr. Faris and SA-TECH employs Mr.
Welcome to our newest members Roseanna Martin and Paul Valovich who are both are employed by
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Our chapter appreciates the reinstatement of members Geoff DeZavala and Arne Johnson while
Michael Chesebrough, Terry Morrison, John Thompson and Terryll Zade renewed their
membership to keep our roster strong. Thank you to everyone.
If you know of other individuals within your organization and wish to have them added to our ―NCMA
Guest Distribution‖ list please let me know.
Looking for a Few Good Members
Our chapter is looking for members who are interested in the CFCM, CCCM and CPCM certification
program. To provide information on certification, National has a Chapter Study Group Guidance
document dated Jul 2005 that can be accessed on our Chapter Homepage under shared documents .
If you are interested, please contact Laurel Fletcher at 939-8484 or email@example.com.
The chapter will cover the $25 fee for the Leadership Conference for any member who attends the
conference. If interested, please contact Heidi Kettler, no later than 9 January 2006, so that the
registration forms can be completed and the fees paid prior to attendance.
For detailed information and logistical details access Click Here
FUTURE SEMINAR TOPICS
NCMA is continually adding new topics to the Audio Seminar Program. Please check back to the
following website http://www.ncmahq.org/education/audio.asp for a complete description of the courses
Sarbanes-Oxley (SOX) : On July 30, 2002, President Bush signed into law the Sarbanes-Oxley
Act of 2002. The Act-which applies in general to publicly held companies and their audit firms-
dramatically affects the accounting profession and impacts not just the largest accounting firms,
but any CPA actively working as an auditor of, or for, a publicly traded company.
Federal Enterprise Software Agreements
If either of these two topics is of interest to you, please contact Mary Jacobs at 939-6043 or
mary.Jacobs@navy.mil so that we may consider ordering these audio seminars.
NCMA WORLD CONGRESS 2006
April 10–12, 2006 • Atlanta, GA
Attend this event for the opportunity to network, share information, and learn about contract
management trends, technology, best practices, and updates on legislation that affect you day to day.
World Congress 2006 offers:
More than 100 educational sessions,
More than 100 exhibits,
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Networking receptions, and
Active recruiting in exhibit hall.
Take the first step in identifying the most relevant topics and issues facing contract professionals today-
-submit your presentation proposal for the NCMA World Congress 2006.
Debate Over Contractor Conflicts Of Interest Heats Up
The Government Accountability Office has sustained its second bid protest this year involving an
organizational conflict of interest, an issue that has recently received increased scrutiny.
In the most recent case, GAO agreed with Kansas City-based Greenleaf Construction Co.'s argument
that the Housing and Urban Development Department failed to evaluate a potential conflict of interest
when it awarded a contract for home management and marketing services to Cleveland-based
Chapman Law Firm Co.
The owner of Chapman formerly had owned a company that worked as the closing agent for HUD's
Ohio properties, and was still receiving related weekly payments. The home management and
marketing services contract required Chapman to oversee that closing agent.
Greenleaf argued that such an arrangement constituted an organizational conflict of interest, because
the owner of Chapman would be receiving payments from a company he was charged with overseeing.
"There's not a lot of difference between having ownership interest in a company and a company you
don't own but that owes you so much money," said Margaret Dillenburg, a lawyer for Greenleaf. The
exact amount of the weekly payments was not made public.
"We find that HUD failed to reasonably consider or evaluate the potential [organizational conflict of
interest]," the GAO decision stated. Based on that finding and other problems, GAO recommended that
HUD re-evaluate the bid proposals.
Organizational conflict of interest, where a company is hired to perform duties that conflict with its other
obligations, has been a hot topic among government contractors since the fall, when Daniel Gordon,
managing associate general counsel for procurement law at GAO, published an article on the subject in
the American Bar Association's Public Contract Law Journal.
"There's been commentary among us that when you read that thing, it's GAO putting everyone on
notice that they're not going to be a passive player here," said Jim DelSordo, a lawyer for Chapman and
a partner at the law firm Cohen Mohr in Washington, D.C. "From my clients' perspective, we just need to
internally make sure we're cleaner than Caesar's wife. If there's any potential subsidiaries, any
connections, you need to build up walls and explain ahead of time."
GAO recently sustained another protest over an organizational conflict of interest involving a contract
awarded by the Defense Information Systems Agency.
Alion Science & Technology Corp. protested the award, arguing there was a conflict because ITT
Industries' Advanced Engineering & Sciences Division had a "significant interest" in manufacturing and
marketing spectrum-dependent products, and the contract called for "subjective judgments that may
affect the sales or use of spectrum-dependent products of the awardee, the awardee's competitors and
the awardee's customers."
Spectrum-dependent products include radar and satellite systems.
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DelSordo said the issue is probably heating up now because agencies increasingly rely on contractors,
and especially consulting services. The Federal Acquisition Regulation prohibits contractors that help an
agency prepare a solicitation from bidding on the contract.
"This should be done in order to avoid a situation in which the contractor could draft specifications
favoring its own products or capabilities," the FAR states.
Companies often have their own internal rules preventing organizational conflict of interest, as well. If
one part of a company is advising an agency on a contract that is at all related to something another
part of the company is working on, then the company can set up firewalls and prevent employees from
talking to each other about it, for example. Many big contractors require their employees to be trained to
avoid such conflicts.
DelSordo said that in the Chapman case, his client will stop taking payments from the company he
formerly owned, even though that's a costly decision. "The contract is worth more," DelSordo said.
Reverse Auctions Losing Bid For Broad Use
But GSA Officials, Saying The Method Has Shown Success, Push For Wider Adoption
Perhaps the most successful federal example of a reverse auction came in 2000, when the Defense Finance and
Accounting Service (DFAS) needed 6,200 computers and a few hundred more laptop PCs and printers.
The General Services Administration opened the acquisition to a reverse auction, in which companies try to
underbid one another to get the contract. At the end of the process, DFAS had bought its desktop computers,
200 laptop PCs and nearly 1,000 printers at a savings estimated at more than $2.2 million compared with what it
likely would have spent under more conventional procurement terms, said David Drabkin, acting assistant
commissioner for acquisition at GSA’s Federal Technology Service.
Indeed, the DFAS case seemed to open the door for widespread reverse auctions, Drabkin said. ―Reverse
auctions were de rigueur for government contracting,‖ he added. ―Everybody was getting involved.‖
States got into the act, too. Pennsylvania conducted reverse auctions through Ariba’s FreeMarkets.com to buy
coal to heat state office buildings and aluminum to manufacture license plates.
Then the technology bubble burst, and reverse auctions rapidly declined. Now, federal agencies don’t use the
procurement tool to the degree that they could, Drabkin said. But that attitude might be changing.
Part of the problem is that some agency officials apparently believe reverse auctions aren’t allowed, Drabkin said.
However, ―there is no prohibition currently in the [Federal Acquisition Regulation] or in any statute to using
reverse auctioning as a tool in government procurement,‖ he said. ―In fact, when you look at the FAR Part 1 we
wrote in 1993, [there is] some very helpful language that says if it’s not prohibited, it’s permitted.‖
To boost federal agencies’ use of reverse auctions, GSA recently signed a five-year contract with online
marketplace FedBid to provide such services.
Reverse auctions work only for some commodity buys, Drabkin said. The approach doesn’t work well for
integrated solutions. ―It does work very well with off-the-shelf types of purchases, items that can be characterized
and quantified,‖ he said.
Such purchases include computers, peripheral devices, laptop PCs and other products that some agencies order
by the truckload, including lower-tech supplies.
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Brendan Walsh, FedBid’s co-founder and vice president, said the company’s first year of operation — 2002 —
was weak because the technology bubble had just burst.
Now he sees new, more focused light at the end of the tunnel. Since then, the company has facilitated more than
17,000 online reverse auctions for a variety of federal agencies.
Typical buys are worth $2,500 to $100,000, with FedBid receiving a maximum 3 percent fee. Walsh is in the
process of expanding the company’s offices to accommodate the growth. He identified the other major factor
limiting agencies’ use of reverse auctions: vendors’ reluctance to participate.
―We’ve heard from a few sellers who don’t like to compete,‖ he said. ―Typically, they see themselves losing some
contractual or other advantage they may have over their competitors.‖
When conducted correctly, reverse auctions can be efficient and quick, said Max Peterson, who has participated
in many reverse auctions as vice president of federal sales at CDW Government. But he sees no strong benefits
for giant IT suppliers like CDW-G.
In fact, by focusing solely on the best price, the buyer might not get everything he or she expects, such as brand-
name products, prompt delivery and compatibility with existing technology, he said.
―CDW sells $6.3 billion worth of [information technology] equipment — that’s an awful lot of leverage when it
comes to volume and prices,‖ Peterson said. ―So we scratch our heads when somebody else comes in with a
much, much lower bid. That’s when we wonder, is the buyer getting an apples-to-apples comparison?‖
Rumbaugh’s Regulatory Notes
On February 1, 2006, DoD issued a Memorandum on ―Performance-Based Service Acquisition (PBSA).‖ DoD
remains ―committed to increasing the appropriate use of PBSA.‖ Attached thereto are copies of the earlier OFPP
direction on PBSAs, current list of services exempted from using PBSA contracting methods, and a copy of the
prior DoD direction requiring ―personnel involved in preparation of performancebased statement of work must
complete PBSA training.‖
The Air Force issued an updated ―Mechanization of Contract Administration Services (MOCAS) Contract Closeout
Guide‖ under a date of December 2005. This Guide for acquisition personnel is intended as providing a ―helping
hand…through the complex list of things to be done to close MOCAS contracts.‖ In addition to process/flowchart,
forms, etc., chapters have the following headings:
o ―Proactive Closeout‖ or so-called, ―How to Avoid Antagonizing Future Generations of Contracting Officers.‖
o ―Common Closeout Problems‖ or so-called, ―What do you mean the contract uses Armed Services
Procurement Regulation (ASPR) clauses?‖
o ―Other Transaction Authority Agreements.‖
o ―Contracts with a Long Term Warranty.‖
o ―FY 04/05 Defense Acquisition Act Temporary Contract Closeout Relief.‖
On January 20, 2006, the Office of Management and Budget issued a Memorandum on ―The Federal Acquisition
Certification in Contracting Program.‖ With approval of this program in 2005, the civilian agencies will generally
mirror the DoD requirements established for its contracting officers under the Defense Acquisition Workforce
Improvement Act. This program has as its goal ―standardized education, training, and experience requirements for
contracting professionals, which will improve workforce competencies and increase career opportunities.‖ Attached
to that Memorandum was a detailed enclosure on the approved program.
―The Office of the Under Secretary of Defense for Acquisition, Technology & Logistics, Unique Identification (UID)
Program Office, has announced that they will sponsor three UID Forums in 2006 to provide practical guidance to
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managers and DoD contractors to help with successful UID implementation as required by DoD policy (DFARS
211.274). …The OSD UID PMO will sponsor the registration for the first 200 DoD employees that attend the first
UID Forum in Seattle, February 21-22, 2006.… For complete information on the UID Forums and registration …
visit http://www.UIDforum.com. For registration questions, please contact Karyn Calaway, 1-800-560-1980.‖
Items summarized in all Regulatory Updates are for general informational/discussion/educational purposes only and should not be relied upon in the course
of representation or in the forming of decisions in legal matters—independent counsel should be obtained. Information on arranging speaking/teaching
engagements in connection with various aspects of Alternative Dispute Resolution (ADR) and basic/advanced negotiation techniques—
seminars/workshops—may be arranged by sending a message to ADROffice@Rumbaugh.net
Industry Opposes Acquisition Changes Recommended By Advisory Group
A coalition of industry associations on Tuesday was highly critical of a federal advisory group's
preliminary recommendations on revising certain government acquisition procedures.
The advisory group's recommendations were released in December 2005 and addressed commercial
practices, which are those relating to goods and services that are available in commercial markets as
opposed to those developed specifically to meet government needs.
Its suggestions, which are not yet finalized, included changes to the definitions for commercial items
and services, standardization of contract terms and adjustments to how pricing is determined in certain
On Tuesday, the Services Acquisition Reform Act Advisory Committee, a group created by the 2004
Defense Authorization Act, heard industry groups' objections to the proposed recommendations. The
association of groups representing contractors - made up of the Professional Services Council, the
Information Technology Association of America, the Contract Services Association, the Aerospace
Industries Association, the National Defense Industrial Association and the Government Electronics and
Information Technology Association -- took issue with virtually every recommendation proposed by the
The industry association said the recommendations were counterproductive, and "would reverse
progress agencies have made in the last 10 years" on competition-friendly procurement reform. Where
the recommendations would result in acquisitions being reclassified as noncommercial, procurement
procedures would be subject to increased oversight and audits, as well as rules on government
intellectual property rights, the association said.
The private sector groups especially opposed several measures that would have linked the definition of
commercial items more closely to their pricing, altered the way pricing is reviewed by government
contracting agents or changed the classification of commercial items with minor, government-specific
They strongly opposed a suggestion to tie the definition of commercial items to price by revising it to be
"items for which the commercial market establishes prices," arguing that the change would
unnecessarily confuse questions of pricing reasonableness with the definition of commercial items.
They also objected to defining commercial services separately from commercial items, arguing that a
breakdown of commercial services into three categories would create layers of unnecessary distinction
and make commercial services subject to procurement provisions different from those for commercial
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Based on the industry groups' presentation of their objections, members of the federal advisory group
asked for additional data and explanations. The industry and working groups plan to meet in an
upcoming closed session to discuss the issues before the panel resolves how to proceed.
New Online Contract Management Contract Program
Saint Louis University's Contract Management program is now being offered online. Previously this
program was only available to contract management professionals in the greater Saint Louis area. The
curriculum which was developed in partnership with the NCMA and the Boeing Company has received
the Association's joint certificate of completion status. Courses count for 3 hours college credit hours
each and lead to a Post Bachelor's Certificate for those individuals that have already earned their
degree. (For those that do not have an undergraduate degree the program is available as a certificate
program but some completion of some prerequisite course may be necessary.)
Courses are nine weeks in length and we offer five such terms a year. This not only accelerates
progression through the program but allows you the flexibility to determine your own pace. The
curriculum consists of five required courses and two of the three electives offered. Because the course
is being offered via distance learning participation is convenient regardless of travel schedule or
personal commitments. The next term begins the week of March 18 and we are offering our introductory
class Basic Principles of Contract Management which is the only prerequisite for all subsequent courses
in the program.
Apply online using the following link http://professionalstudies.slu.edu/ or call us at 800.734.6736.
Jack Cancila, Program Coordinator
"Look at a day when you are supremely satisfied at the end. It's not a day when you lounge around
doing nothing; its when you had everything to do, and you've done it."
-- Margaret Thatcher
"One of the good things about getting older is you find you're more interesting than most of the people
"If you don't like something, change it. If you can't change it, change your attitude. Don't complain."
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FOR YOUR INFORMATION
Your chapter’s officers and chairpersons are interested to hear from YOU. If you have anything you
wish to put in the newsletter, feel free to e-mail a copy to Derrick Hu.
President Heidi Kettler firstname.lastname@example.org 760-939-1800
President-Elect: Lisa Pelzl email@example.com 760-939-5607
Secretary: Ed Parks firstname.lastname@example.org 760-446-8694
Treasurer: Kim Matsunaga email@example.com 760-939-7084
VP Membership Carole Lindemann firstname.lastname@example.org 760-939-8196
VP Education/Certification: Mary Jacobs email@example.com 760-939-6043
VP Programs: Laurel Fletcher firstname.lastname@example.org 760-939-8484
Hospitality Chair: Liz Aldridge email@example.com 760-939-2799
Newsletter/Employment Chair: Derrick Hu firstname.lastname@example.org 760-939-0240
Publicity Chair: Peggy Griset email@example.com 760-446-9220
Scholarship Chair: Kim Thatcher firstname.lastname@example.org 760-446-1801
Awards Chair: Lisa Pelzl email@example.com 760-939-5607
Graalman Chair: Laurel Fletcher firstname.lastname@example.org 760-939-8484
Fellows Chair: Andre Long email@example.com 760-939-0678
Elections Chair: Vacant
Membership Directory Chair: Stephanie Whitfield firstname.lastname@example.org 760-499-5709
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