423 Forum Cost/Price Analysis / Business Competencies

Response Question 1

The biggest issue that I have seen that arises frequently in accomplishing a mission is the temptation to cut corners. This is both within the contracting world and most other arenas of completing a mission. The press for time is the most common reason why corners are cut and things are decided without actual analyzation. For whatever reason, over and over again I see a need for a service or item put on the backburner until nearly the last possible moment. Many of you have probably seen this when it comes to end of year funding. Nobody plans ahead, get quotes, or identifies needs in July and August. Nope, we wait until September 15th and then run around like fools working late to get things lined up.

                This was talked about in a 2015 article where the Inspector general (I.G.) reported findings that there was a backlog at the Defense Contract Management Agency (DCMA). This led to 21 deficiencies that centered mostly in reports being late. Failure to issue initial determinations of deficiencies to contractors within the 10 day deadline after receiving the DCAA’s report. Failing to follow-up with contractors within the 30 day period after they were notified of determinations, and a list of other busted deadlines were found.

The I.G. findings mentioned that the lengthy internal review process was resulting in shortcuts and significant mistakes. This is looking at a shortcut from the other side of the fence, but it also very interesting. The DCMA is charged with enforcement, and compliance, yet they are having similar issues with timeline pressures causing failure. It is very difficult to hold a contractor to the fire when you are running late and failing to notify within legal timelines.

Response Question 2

Hello class, the readings of 1.3 and 1.3.1 discusses conduct and ethics. Conduct and ethics, according to the reading, requires first, great leadership. If leadership isn’t doing its part to make sure everyone is following the required code of conduct and ethics, then the code of conduct and ethics policies useless. Leadership also has to offer resources such as someone who will enforce the code of conduct, ethics training programs, complaint systems, to mention a few. The Code of Ethics is intended to create public trust along with confidence in the integrity of contracting. The Code of Ethics has general obligations, professional obligations, and lastly obligations to the Association. Training is mandatory in defense contracting because, so many rules and regulations exist. Everyone involved with contracting must be aware of situations that would not comply and also aware of unethical behavior.

In 2014, Army contracting officials were sentenced to prison for ethics violations. Both individuals worked in contracting and were married to one another. They both violated the code of ethics together because the husband received financial gifts from a company and the wife, the senior civilian official of the U.S Department of the Army, filed false tax returns and filed false financial ethics disclosure forms. According to the article, the ethics violations occurred between the years 2000 and 2009. The husband Kenneth Nix, accepted $500,000 from the contracting company and accepted the money off the books. The company paid him in cash and blank money orders, to mention a few. The wife concealed the payments by writing the name and initials of her mother in the remitter field. The couple received payments from the company and in return the couple awarded the company with contracting awards. The wife who was the senior official was sentenced to 20 months in prison. The husband who worked for the company was sentenced to 30 months in prison. The couple together had to pay over $153,000 in restitution. (Former, 2014). Thanks.