Jun 01, 2020 - 9:30am

May 29th OUSD A&S COVID Conference Call Notes:


President, Defense and Aerospace Export Council (DAEC)
Vice President, U.S. Chamber of Commerce

May 29th OSD A&S COVID Conference Call Notes:

 

OSD A&S: 

  • Have received PPE industrial availability information which is helpful to OSD.
  • OSD talked about the issue of standards matter (industry complaining about the lack of a DoD PPE standard for employees and contract personnel) and asked industry to provide examples of conflicting or varied standards in DoD which would be helpful to OSD A&S leadership—the company can mask the installation or office if they prefer as they just need examples not to call out specific offices.
  • Beginning the process of a complete Pentagon return to operating business post COVID as announced on the Pentagon website today under a measured basis from 20% cap today to something a little higher and slowing opening up to more employees in the building thru the summer.

DLA: 

  • Fed Mall—providing non-medical PPE to small businesses—DLA looked at a variety of ideas and decided to focus on Fed Mall which is a government e commerce acquisition platform allowing DoD and State governments to buy a number of items thru DLA’s J6 managed Fed Mall program. 
  • Primary concern with enabling small businesses to get PPE was to ensure that doing so did not interfere with DLA standing government requirements.  DLA therefore set up a small business “Fed Mall corridor” that will allow industry to buy thru this program.
  • Likened to a COVID store and identified over 100 vendors to participate in supplying this “corridor” and then opening access to those small businesses in need. 
  • DLA has developed requirements and are now testing the system and target 12-14 June to deploy this new program/catalogue and hopefully could do so as early as 5 June.
  • Again, non-medical grade PPE. 
  • Limited to $10K per transaction per company for each requisition. 
  • Still working to identify exactly who those small business buyers are that will take advantage of this new program. 
  • DLA has not set an end date for this program but will be closely monitoring the buyers and assessing the success of this program. 
  • If deemed the program is being abused by any one company, DLA will block them from future purchases. 
  • Vendors supplying this program are those identified from the JATF portal and DLA has confirmed that these are suppliers who will not interfere with the normal DLA USG supply chain. 
  • So these will be new vendors to DLA who have demonstrated an ability to meet this small business need. 
  • DLA confirmed that given the micro purchase level of each acquisition the Buy America Act restrictions do not apply so suppliers can supply from a foreign source. 
  • Vetting of buyers will be done by confirming the vendors existing contract number with the U.S. government via the DoD contracting officer. 
  • A potential buyer of this PPE thru DLA Fed Mall must demonstrate they are on contract with DoD and have a need accordingly. 
  • DLA will publish a fact sheet that will be published along with opening the Fed Mall corridor.  This Fact Sheet will be provided to the Associations and Chamber once finalized.  NOTE:  OSD A&S has asked us to not publicize this new effort publically until their press release is issued over the weekend.

OSD Small Business: 

  • Next Wednesday webinar with focus on Telework at 3p--see business.defense.gov for details and to sign up.
  • Army small business office—continue to hover around 16.6% COVID small business awards, larger buys are winding down, excited about ability to assist DLA on the new Fed Mall concept.
  • Navy small business office—response to date $115M awarded to date for COVID response which is slightly over 12% of all Navy money spent to date for small businesses.
  • Air Force small business office—COVID 19 activity at about $100M to 250 different small businesses representing 33% of COVID 19 funds to small businesses DoD wide.

DCMA: 

  • Slight change in Defense Industrial Base (DIB) status with uptick in closures from 33 last week to 35 this week as they are starting to see repeat of exposure forcing new closures.
  • 18 days on average to reopen.
  • 43 days on average closed.
  • Five planned closures next week and monitoring unplanned pop up closures; international closures down to 5 only; 12 layoffs and strikes across the DIB.
  • As State’s reopen they are seeing some hot spots emerge and will watch closely DIB impact.

DPC: 

  • DoD totals for COVID spend at $2.5B and $850M or 34% to small businesses as tracked at the OSD level across all of DoD.
  • Sec 3610 inputs—working thru all the comments, planning to create a simplified fast track for contract by contract adjustments at lower dollar amounts that would be straight forward so as to minimize delay in financial adjustments to industry.
  •  Still working thru restrictive markings in responses from some industries on Sec 3610 draft guidance—those industries should have been already notified with a suspense of 2pm today to either remove the markings or acknowledge that their input will not be included in the draft as they cannot be posted publicly as required by law.

Associations/Chamber: 

  • Thanks to DLA and DPC for all their creativity and hard work. 
  • OSD A&S is considering hosting these once a week and asked for our input.

About the Author

About the Author

Keith Webster headshot
President, Defense and Aerospace Export Council (DAEC)
Vice President, U.S. Chamber of Commerce

President, Defense and Aerospace Export Council (DAEC), and Vice President, U.S. Chamber of Commerce.