SMACNA Opposes Design-Build Two-Step Exemption, Supports Commercial Auditing
In a recent letter to Rep. Mac Thornberry, Chair of the House Committee on Armed Services, SMACNA, along with other construction industry trade and professional organizations, urged the Chairman to oppose language that exempts some contracts from established design-build selection procedures and support language promoting commercial auditing. Both of these provisions are in the National Defense Authorization Act of 2018, H.R. 2810. Included in the letter, were requests to:
- Oppose Title VII Subtitle E Section 8XX: This section would amend section 2305a of title 10, United States Code, to exempt solicitations issued pursuant to an indefinite delivery/indefinite quantity (IDIQ) contract from the statutory limitation on the number of offerors that may proceed to step-two of the design-build selection process. The provision in the bill would undo a critical reform that Congress only recently put into place, and would lead to delays in federal contracting, encourage unnecessary bidding, hold up companies from bidding on other projects, and increase procurement costs to the detriment of the government, industry, and taxpayers. In short, the provision works against the purpose of IDIQ contracts which includes streamlining project delivery. The Procurement Collation opposes this effort to broaden the potential offers to the second step of federal procurement.
- Support Title I Section 102 §2313b Performance of Incurred Cost Audits: The section promotes the ability of contractors of the Department of Defense (DoD) to submit a summary of audit findings on indirect costs of the contractor that were prepared by a commercial auditor. This important reform would assist the federal government in dealing with the enormous backlog of thousands of audits waiting to be processed. It has been proven commercial auditing firms will be held to the same rigorous standards the DoD requires. The Procurement Collation supports this effort in help relieve the backlog of DoD audits and increase efficiency for the DoD and federal contractors.
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