Government contractors are no stranger to rapid change. Often driven by new legislation, emerging technology or worldwide trends, adapting to a constantly changing landscape is the cost of doing business with the U.S. Government. But besides being flexible, looking ahead and predicting upcoming trends can help contractors better align their businesses with what’s to come.
Buckle down on Cybersecurity
Winning contracts will require strict cybersecurity verification in 2020. Version 1.0 of the Cybersecurity Maturity Model Certification (CMMC) was introduced by the DoD in January, and contractors should expect to see CMMC requirements as part of requests for information as soon as June 2020.
CMMC provides a framework for the DoD to assess and enhance the cybersecurity posture of the Defense Industrial Base, ensuring appropriate levels of cybersecurity practices and processes are in place. CMMC will encompass multiple maturity levels that range from “Basic Cybersecurity Hygiene” to “Advanced.”
Contractors will coordinate with an accredited third-party commercial organization for CMMC certification, which will be based upon the contractor’s ability to demonstrate maturity in their capabilities and organizational maturity to the satisfaction of the certifying party. All companies, including subcontractors, will need to obtain CMMC certification.
It’s a big year for the little guy
The FY2020 National Defense Authorization Act, which specifies the budget, expenditures and policies of the DoD, has passed- allocating $738 billion to the United States military.
Of the many implications, small business should take note of the expansion of the definition of “Disadvantaged Small Business Concern.” This permanently authorizes the DoD’s Mentor-Protégé Program, intended to increase participation of small businesses by encouraging mentorships with DoD contractors.
The Small Business Act has also been amended to require the Small Business Administration to report information regarding “best-in-class” awards to small businesses in its report to the president and Congress.
In additional, 2020 marks the year that new legislation kicks in, classifying the small business designation by basing it on an average of earnings over five years instead of three. This will have significant impact on how small-business contract competitors are evaluated.
The General Services Administration ushered in the new fiscal year by releasing its new consolidated Multiple Award Schedule contract. The contract takes the 24 different multiple GSA award schedules and consolidates them into one schedule with 12 categories. This new contract is designed to allow contractors to operate one single contract with one set of requirements, rather than juggling the needs of multiple contracts if they provide multiple products or services.
According to the GSA, reforming the schedules will improve customer service, make it easier for small businesses to access the schedules program, reduce duplication for all vendors, and allow GSA workforce to focus on delivering solutions.
With so many changes in the works, don’t let maintaining compliance with shipping, packaging, labeling and data entry standards make you lose sight of fine tuning your business for future performance and securing new contracts. Odyssey can help.
To learn more about Odyssey, or for any other inquiries about our products and services, contact us.