1. 1 July 12, 2005 AFCEA “Secure the High Ground” 1 ACQUISITION UPDATE: a NEW WORLD IS COMING Mark J. Lumer Contracting Executive (256)955-3410 Mark.Lumer@smdc.army.mil

2. 2 July 12, 2005 AFCEA “Secure the High Ground” 2 WHAT’S NEW HQ AMC COMING TO HUNTSVILLE CG SMDC COMING TO HUNTSVILLE MDA (EXCEPT FOR CG) COMING TO HUNTSVILLE BY FY09, FEDERAL CONTRACTS ISSUED IN HUNTSVILLE ARE ANTICIPATED TO EXCEED $30 BILLION ANNUALLY (FY04: $19 BILLION)

3. 3 July 12, 2005 AFCEA “Secure the High Ground” 3 FY 05 Small Business Targets and Accomplishments 01 OCT 04 – 30 APR 05 TOTAL ESTIMATED U.S. DOLLARS - $2.1B TOTAL ESTIMATED UNIV DOLLARS - $35M TOTAL ACTUAL U.S. DOLLARS $1,334,152,514 TOTAL ACTUAL UNIV DOLLARS $27,822,805 TOTAL SMALL SMALL WOMAN- SERVICE DISABLED HUBZONE HBCU/MI BUSINESS DISADVANTAGED OWNED VETERAN-OWNED $500.2M 25% $150M 7.5% $60M 3% $40M 2% $20M 1% $4.2M 12% $404.2M $83.3M $97.0M $29.2M $10.5M $4.5M

4. 4 July 12, 2005 AFCEA “Secure the High Ground” 4 WHAT’S NEW NEW USD (ALT) – HONORABLE KEN KRIEG CONFIRMED BY THE SENATE ON MAY 26, 2005. SBA HAS CREATED A SPECIAL OFFICE TO HELP SERVICE-DISABLED VETERAN-OWNED SMALL BUSINESSES. SBA WILL ESTABLISH WOMEN-OWNED BUSINESS SET-ASIDE REGULATIONS TO IMPLEMENT PUBLIC LAW 106-554.

5. 5 July 12, 2005 AFCEA “Secure the High Ground” 5 WHAT’S NEW FY06 DoD AUTHORIZATION BILLS: –PROPOSE TO INCREASE ACQUISITION WORKFORCE BY 15% –REQUIRE EACH SERVICE TO SET-UP CONTRACT SUPPORT ACQUISITION CENTERS FOR CONTRACT TRACKING AND OVERSIGHT –MANDATE REVIEWS OF DEFENSE INTERAGENCY CONTRACTING –RESTRICTS THE USE OF “REBASELINING” IN MDAPs

6. 6 July 12, 2005 AFCEA “Secure the High Ground” 6 WHAT’S NEW PROTESTS CONTINUE TO RISE: –1485 IN FY04 (25% INCREASE SINCE FY00) –FEDERAL PROCUREMENTS WERE $300 BILLION IN FY04 (ALMOST 50% INCREASE SINCE FY00) –GAO DENIAL OF PROTEST WHERE COMPANY EXCEEDED THE PAGE LIMIT AND GOVERNMENT IGNORED EXCESS PAGES (“SAYRES & ASSOCIATES CORP”, 25 APR 05)`

7. 7 July 12, 2005 AFCEA “Secure the High Ground” 7 WHAT’S NEW DFARS CHANGES (MAY 24, 2005) –INCENTIVE PROGRAM FOR CONTRACTORS TO PURCHASE CAPITAL ASSETS MANUFACTURED IN THE U.S. –EXTENDS MENTOR – PROTÉGÉ PROGRAM TO 2010 AND AUTHORIZES REIMBURSEMENT TO MENTORS THROUGH FY10 AND FY13 (IN CERTAIN CASES) –NEW PROCEDURES/APPROVALS BEFORE USING NON-DoD CONTRACTS FOR BUYS OVER $100K.

8. 8 July 12, 2005 AFCEA “Secure the High Ground” 8 WHAT’S NEW PROPOSED ACQUISITION SYSTEM IMPROVEMENT ACT (H.R. 2067) - REQUIRES USE OF REVERSE AUCTIONS AND OTHER ON-LINE SERVICES FOR COMMERCIAL ITEMS. - INCREASES COST ACCOUNTING STANDARD FROM $500K TO $550K. - AUTHORIZES STATE AND LOCAL GOVERNMENTS TO USE FEDERAL SUPPLY SCHEDULES FOR GOODS AND SERVICES RELATED TO NBC ATTACK.

9. 9 July 12, 2005 AFCEA “Secure the High Ground” 9 WHAT’S NEW PROPOSED FAR CHANGE (3 JUN 05) WOULD ALLOW PRIME CONTRACTORS TO RECEIVE CREDIT TOWARDS MEETING SMALL BUSINESS AND SMALL DISADVANTAGED BUSINESS GOALS FOR AWARDING SUBCONTRACTS TO ALASKAN NATIVE CORPORATIONS. GAO DECISION (1 JUN 05) SUSTAINING A PROTEST WHERE THE GOVERNMENT RELAXED REQUIRE- MENTS VIA A CONTRACT MODIFICATION THAT ENABLED A PRIME CONTRACTOR TO CONTINUE PERFORMANCE AND AVOID A RE-COMPETITION. (POLY-PACIFIC TECHNOLOGIES).