OFPP calls for fresh procurement ideas

Office of Federal Procurement Policy

The Office of Federal Procurement Policy put out a call Tuesday for ideas

about new contracting methods.

OFPP is looking for ways that agencies can work with contractors to

improve the federal government's business arrangements.

Acquisition reform measures put in place since 1994 have significantly

changed the way the government acquires products and services, providing

acquisition officials increased flexibility and program officials faster

turnaround on requirements.

But studies by OFPP, the Army and industry have found that agencies

frequently aren't using several innovative forms of contracting available.

Additionally, inappropriate incentives often are used, according to a Federal

Register notice from OFPP.

"Consideration of incentives typically was limited to the fee portion

of contracts to the detriment of other incentives that contractors would

find more appropriate and meaningful, such as consistent revenue flow and

the promise of future business," the notice states.

OFPP is calling for ideas, recommendations, practices and lessons learned

on incentives not based on fees that are used in industry, nonprofit organizations

and state and local governments. The agency hopes these methods will help

the federal government "fundamentally restructure our contractual relationships

to accommodate improving our business arrangements," wrote Kenneth Oscar,

OFPP acting deputy administrator.

OFPP is considering holding a public meeting to discuss these and other

issues. Comments are due to the agency by Dec. 26.

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