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FCW : July 30, 2013
Trending 10 July 30, 2013 FCW.COM 2.3 million CRITICAL READ WHAT: A new report from the IBM Center for the Business of Government provides what it calls the rst quantitative analy- sis of the federal government's mostly overlooked "tail spend, " which drains billions of dollars in a jumble of ill-de ned products and services. WHY: Tail-spend procurement refers to buying outside an organization's core spending and supplier groups. Author David Wyld, C.E. Laborde Professor of Management at Southeastern Louisiana University, argues that by more aggressively managing the tail of federal spending, the government as a whole could save $113 billion to $226 billion, with the Defense Department saving $64 billion to $128 billion. VERBATIM: "With today's renewed emphasis on stra- tegic sourcing in the private and public sectors alike, the best way to leverage an organization's purchas- ing power may be to bring a new focus on procurements made at the edge of the sup- ply chain, both in terms of what is being bought and with whom the transactions are made." FULL REPORT: businessofgovernment.org Rep. Frank Wolf (R-Va.), chairman of the House appropriations subcommit- tee that funds NASA, the National Sci- ence Foundation and the departments of Commerce and Justice, has once again inserted language into a funding bill that restricts the ability of those agencies to acquire IT systems that include components sourced to com- panies that are "owned, directed or subsidized" by China's government. The subcommittee approved the bill July 10. Nearly identical language is part of the continuing resolution that cur- rently funds government operations, which is set to expire at the end of September. The government has yet to establish rules for how agencies are supposed to interpret the provi- sions that are already on the books, and Wolf told FCW that the current law is being implemented poorly. The restrictions are designed to address risks posed by state-owned enterprises, including Huawei and ZTE. In a report issued in October 2012, leaders of the House Perma- nent Select Committee on Intelli- gence alleged that those companies were active in cyber espionage. The restrictions in the appropriations bill "are precisely the recommendations China-sourcing rules for IT reappear in appropriations made in a bipartisan way by the chair- man and ranking member of the intel- ligence committee," Wolf said. Joe Klimavicz, CIO at Commerce's National Oceanic and Atmospheric Administration, said Commerce of - cials are working with NASA, NSF and the FBI to establish a process for adhering to the existing restric- tions. "I think in the end we're going to use our existing boards and review processes," Klimavicz told FCW. "It's another check that we've got to do." Some industry leaders believe the existing measure is suf cient and the new legislation, though well inten- tioned, is unworkable. Trey Hodgkins, senior vice presi- dent for the global public sector at TechAmerica, said the measure "has had an impact and has stopped deliv- ery of technology." TechAmerica's member companies say NASA has adopted the most aggressive posture in trying to enforce the measure, but Commerce and Justice are also asking vendors if their products are compliant. Nevertheless, "agencies are asking companies to demonstrate compliance without de ning what compliance is," Hodgkins said. --- Adam Mazmanian Defense Department staff days were lost to furloughs in July Join the conversation FCW usesTwitter to break news, eld questions and ask our own. Learn more at FCW.com/followFCWnow. Interesting look at #FITARA by Alan Balutis. Not sure how this is going to play out yet. via @FCWnow 12:14PM-12Jul13 SIIA Public Sector @SIIAPSIG Reply Retweet Favorite
July 15, 2013
August 15, 2013