Docstoc

NWS IT Support Service Contract

Document Sample
NWS IT Support Service Contract Powered By Docstoc
					BUYING LIGHTNING DATA

     LESSONS LEARNED
           AND
    FUTURE CHALLENGES

  TO AVOID ANTI-DEFICIENCY



          DAN CLEVER
           DIRECTOR
    NWS ACQUISITION DIVISION
                               1
                       PURPOSE


•   To provide acquisition support to NWS by acquiring
    lightning data for use by NOAA and other government
    agencies.

•   To provide an update of the status of our current
    Lightning Data contract.

•   To ensure that our contracts are in compliance with all
    applicable laws and regulations.




                                                              2
                        DEFINITIONS


• Incremental Funding:

  The provision or recording of budgetary resources for a program or
  project based on obligations estimated to be incurred within a fiscal
  year when such budgetary resources will not cover all the program’s or
  project’s obligations. Contracts that cannot be separated for
  performance by fiscal year may not be funded on an incremental basis
  without statutory authority.

  -GAO Accounting and Financial Management Division


                                                                       3
                        DEFINITIONS


• Full Funding:

  The provision of budgetary resources to cover the total estimated cost
  of a program or project at the time it is undertaken (regardless of when
  the funds will actually be obligated).

  -GAO Accounting and Financial Management Division




                                                                         4
             Applicable Laws & Regulations


•   The Anti-Deficiency Act (31 U.S.C. 1341)

•   Adequacy of Appropriations Act (41 U.S.C. 11)

•   Preparation, Submission and Execution of the Budget
    (OMB Circular A-11)

•   Federal Acquisition Regulation (FAR) Subpart 32.7

•   Applicable Agency Guidance


                                                          5
              The Problem




The practice of incrementally funding our
Lightning Data contracts is placing NWS at
risk of violating federal statutes. It is also
preventing us from paying the contractor in
a timely manner.


                                                 6
      Why Is Incremental Funding
              A Problem?



While ample guidance exists for the incremental
funding of cost-type contracts, there is no specific
statutory, regulatory, or agency guidance
authorizing the application of this budgetary
practice to Fixed Price contracts.



                                                       7
      What Does the Law Say?


The Anti-Deficiency Act (ADA) tells us that:

   “An officer or employee may not make or
authorize an obligation or expenditure that
exceeds an amount available in an appropriation
or fund.”




                                               8
      What Does the Law Say?


The Adequacy of Appropriations Act tells us
that:

  “No contract or purchase on behalf of the
United States shall be made, unless the same is
authorized by law or is under an appropriation
adequate to its fulfillment.”


                                                  9
             What Does the FAR Say?

    FAR Subpart 32.702 tells us that:

    Before executing any contract, the Contracting Officer shall –

ü   Obtain written assurance from responsible fiscal authority that adequate
    funds are available
                            or
ü   Expressly condition the contract upon availability of funds in accordance
    with FAR 32.703-2

    (Only for Operations and Maintenance, Continuing Services and non-stock
    funded Supplies, which are necessary for normal operations, and for which
    Congress has consistently appropriated funds).




                                                                                10
             SO HOW DO WE FUND OUR
         LIGHTNING DATA CONTRACTS AND
           STAY WITHIN OUR BUDGETARY
                  CONSTRAINTS?

1.   Plan ahead. Send NWS AD your FULLY FUNDED
     Procurement Request before your current
     Contract/Delivery Order expires.

2.   Ensure that your Budget Office programs all of your
     Lightning Data Contract funding for NWS obligation
     early in the new FY.




                                                           11
       - SO WHAT IF I CAN’T GET ALL OF MY
        AGENCY’S LDP FUNDING AT ONCE?


Ø Fund “Stand-Alone Stages” of the contract or
  project.
   Project Managers should request NWS AD procure Lightning Data for their
   agency for just that time period that they have $$ for. We can procure the
   project in smaller “pieces”, depending on funds availability.

   Additional “pieces”, comprising the remainder of the performance period,
   can be included in the contract as options, and funded later, if funds become
   available.

   Employing this technique, we are fully funding each segment, as funds
   become available to us.


                                                                              12
                A “STAND-ALONE STAGE” IS:



A component of a project that:

•    Provides information which allows for planning, design, and
     assessment of costs, benefits, and risks of a potential acquisition

        OR

•    Results in a usable asset for which the benefits exceed the costs even
     if no further funding is provided




                                                                           13
          When is Incremental Funding OK?



Ø   R&D
Ø   High Technology Acquisitions
Ø   Program Funded Incrementally by Congress
Ø   Hazardous/Toxic Waste Remediation
Ø   Multi-Year Contracting
Ø   Cost-Type Contracts




                                               14
                    RECOMMENDATIONS


Our current practice of incrementally funding our fixed price Lightning Data contract
and Delivery Orders places us at risk of violating the Anti-Deficiency Act.

To avoid this, and still acquire the services we need, we must plan ahead, and award
contracts and Delivery Orders which obligate only those funds which are made
available to us. The contractor CANNOT be required to provide data unless they have
been awarded a Delivery Order for it. NWS AD will no longer write these D.O.s
without funding from the agencies who will be receiving the data.

We should consider re-writing the Interagency Agreements between NOAA/NWS and
the other Government Agencies to clarify our funding requirements.

We should seek additional obligation authority to fully fund acquisitions which cannot
reasonably be subdivided into smaller stand-alone stages.




                                                                                    15

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:3
posted:7/14/2013
language:Unknown
pages:15