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Obama Administration Issues Additional Guidance on Federal Contracting

In a final series of directives issued by the Office of Management and Budget (OMB) on October 27, the administration said that the civilian agencies should increase their acquisition workforce by at least five percent by 2014. In addition, the agency called for a limit on the use of noncompetitive and other "higher-risk" types of contracts. A second memo released by OMB, Increasing Competition and Structuring Contracts for the Best Results, provides agencies with a series of guidelines to help Chief Acquisition Officers (CAOs) and Senior Procurement Executives (SPEs) evaluate the effectiveness of their agency's competition practices and processes for selecting contract types. The guidelines focus around three key questions: 1) How is the agency maximizing the effective use of competition and choosing the best contract type for the acquisition? 2) How is the agency mitigating risk when noncompetitive, cost-reimbursement, or T&M/LH contracts are used? 3) How is the agency creating opportunities to transition to more competitive and lower risk contracts?