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Happy Holiday's from The TRG Family

"Internet Re-Focus"

Part I

Whether you choose to call it the Internet (Old Hat to many), the “Cloud” (a current and thoroughly misunderstood concept), or Global Reach (popping up occasionally), being certain to adjust this realty into formal planning of all kinds has now moved to the ‘critical’ category.

Our Team’s intention is to help you, our friend and allies, advance the priority of this reality in both your professional and (Yes) personal thinking.

Over the next several months this sequence in The AGENDA will hopefully trigger:

• A calendar driven Internet Plan for you and EACH function, market, and team

• Two sets (minimum) of eyes on everything planned

Starting with the fundamental reality of what you should have in place promptly:

• The creation of an Internet Use and Placement Strategy IN WRITING

• A Corporate / Team / Personal “Branding” target for your internet presence

• Models of how to put your plans in play and maintain / enhance them over time

• How this will critically impact both the Advancement of Your Career and plans for Converting Your Career (as being pursued by a rapidly expanding group of TRG friends)

As ALWAYS your thoughts here are more than important. Please send models you would be willing to share of methods, policies and training. Please help us expand the overlapping networks that TRG reaches. Answers do NOT have to be broad in nature… in fact ‘simple’ is definitely ‘good’.

The working results of the ongoing results of this effort will be appearing on our website www.regisgroup.com before the end of the month.

Next month’s AGENDA “Internet Re-Focus” Part II article will highlight Development Areas, Forms of Internet Uses and Ranges of Placement.

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The Regis Group, Inc.
102 North King Street | Leesburg, VA 20176 |
703 777-2233 | www.regisgroup.com

December 2012

What Federal Contractors need to know about LPTA (Lowest Priced Technically Acceptable)

By James J. Daday

Given this economy, the deficit, and sequestration, the Department of Defense (DoD) is looking for ways to save money. Two trends I’ve seen: (1) increased emphasis on small business, and (2) using “lowest price, technically acceptable”, or LPTA proposal evaluation strategy.

In theory, LPTA can save money by:

- LPTA drives competitive rates and profit very low.

- Less time (money) is spent reviewing all competitive proposals. In the most extreme case, if the lowest priced proposal is compliant and “adequate”, it is the only proposal read.

The reality is much different. From my experience, here are a few things I think you should know about LPTA:

- Proposed rates are driven by salary, overhead, and profit. Overhead is usually fixed, so to lower rates, salaries drop.

- Lower salaries attract less experienced / less capable employees - performance suffers.

- Even if quality employees accept a lower salary, they actively work to find their next job - performance suffers.

- Per the above, turnover increases - performance suffers. More time is required to fill vacancies and provide job training - performance suffers.

- Another option instead of or in addition to lower rates is to bid less people than the job requires. Each employee must work harder and longer, and maybe in areas where they are not qualified. This causes disgruntlement and increases turnover - performance suffers.

When “performance suffers”, mission and cost are affected:

- Either the job doesn’t get done and money is wasted, even though the “lowest price” was paid,

- Additional funds are required to fix the situation and any problems it caused.

LPTA impacts:

- The government’s ability to perform

- A company’s reputation

- Employees, facing lower wages or unemployment

The path forward?

In time, the DoD will see the impact of LPTA and return to best value. Unfortunately, damage will be done to the reputation of a number of companies, and the operational readiness of our systems and forces will be impacted. Industry needs to lobby congress to return to “best value”, but in the meantime, on each opportunity you pursue, influence the RFP, acquisition strategy, and source selection authority. Be aggressive on showing best value and the impact of a lower cost solution. Once we give the decision makers the right facts and tools, they will be more willing to step up to true best value again.

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Focus on the Future
Guest Predictions:
James J. Daday

Guest Predictions is a regular feature in which we ask leaders in a number of professions a set of questions that affect us all.

James J. Daday, PMP, ITILv3 202-499-0317, jdaday@agilemgroup.com

James Daday founded Agile Management Group in 2012 to support companies that need adjustments in program management, particularly as pertains to federal contracting. He has 36 years experience as a US Air Force active duty officer and DoD/DHS contractor. Mr. Daday was the Director, Mission Assurance & Acquisition Services for Engility Corporation, providing acquisition and information assurance support to various DoD agencies. He has served as an electronic warfare engineer and manager, as well as both a U.S. intelligence program manager and liaison officer with the German Luftwaffe; and intelligence systems acquisition officer at Hanscom AFB, MA. Mr. Daday has both a BSEE and MBA. He resides in Virginia with his wife, Beth. They have a married daughter, a married son and 1 grandson.

Q:     Which changes in your professional environment in the past 3-5 years have you found to be the most beneficial?

A:    When you look across the Federal Sector, there has been continual pressure to reduce budgets and reduce costs. This applies to the Federal government, federal programs, and supporting contractors. What has not changed is the pressure for improved performance. This has led to more streamlined acquisition and management processes and tools to continue to do things better, cheaper, and faster.

Q:    What changes have been the most troubling to you?

A:    The government’s adaptation of “lowest price, technically acceptable” evaluation criteria for competitive awards. It may appear to drive down cost for the government, but from what I have experienced, it severely impacts performance, employees, contractor reputation, and mission performance.

Q:     How will globalization affect your professional area in the near term?

A:    The effect will be felt in two areas. First, as US Government spending for contractor support decreases, companies will look to capturing new business overseas. The effect could be both positive and negative depending on the industry and work. Second, The US Government itself will look to reach out to other countries for mutual assistance. This holds the potential for improving US stature and security overseas.

Q:     What significant challenges might be anticipated in your professional area in the next few years?

A:    For better or for worse, there are a significant number of people and companies that rely on doing business with the Federal Government. There will continue to be less and less spending available on government contracts. The government is faced with the challenge of continued operations and sustainment of systems, especially DoD and DHS systems and processes, that have a “must pay” price tag. Industry must adapt as well. Alternatives include diversification and overseas markets. Large companies may be able to adapt better than small companies.

Q:     What are the greatest challenges confronting young professionals in Western culture today?

A:    My daughter is enrolled in the PhD Program at the University of Nebraska. Her dissertation will be on Corporate Leadership… dealing with the mix of Baby Boomers, Gen X’ers, and Gen Y’ers in the workplace. In the work environment today we are seeing a mix of outlooks, each with a different sense of entitlement, as well as different ideas of self-worth and motivation. The challenge for the young is to take their “video game” mindset into the professional world and successfully sell their value to those entrenched in ‘traditional’ business environments.

James Daday

Marc Chinoy

President's Letter

Greetings!

Welcome to the End of a Tumultuous Year, in which a stumbling economy led us into a whirling dervish of a presidential election.

The hope is (generally supportable) that the prospect of steadying ourselves to move forward is a wise step at this moment.

To this end we are looking at the sector of those who understand (or would like to understand) how to engage in the next round of federal endeavor, plus the beginnings of a “Call to Planning” NOW!

We are particularly interested in hearing those positive signs that you may have noted… And now we are not taking the Pollyanna approach of saying that all is suddenly rosy…

But if ever there was a time when affirmative thinking is likely to pay off, this is it.

Happy Holidays

Marc

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BizSpeak!
Winner of the Month:
Bryan Benitz of The Veterinary Club

"Polar Opposites"

Definition:
When personalities, organizations or elements of an issue are beyond simple opposition.

Related Terms:
Head on Head Collision Course, Butting Heads, Mutual Elimination, Mirror Image

How it Sounds:
"Frank and Jan could not go more than two minutes at the table without demonstrating the degree to which they are Polar Opposites about entering the Western States, and coming out in one piece."

Don't forget to send us your BizSpeak to:
infotrg@regisgroup.com

Click here ot check out the BizSpeak book!

___________________

The Regis Group, Inc.
102 North King Street | Leesburg, VA 20176 | 703 777-2233 | www.regisgroup.com