The New S ta te o f Government Con t rac t ing

Axim Fringe Solutions Group

Presented by Brad Adamczyk

The New GovernmentThrough a number of new policies Government Contracting is being run

more like a “business” than ever.

LPTA: Probably Here to StayOne of the largest impacts on Government Contracting is the Lowest Price Technically Acceptable

initiative.

Two Sides To Every StoryThere are a lot of opinions on LPTA, here are the most common arguments

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Reasons Against

Sacrifice in Quality

Limits design and innovation

Small Margin for Error

Reasons For

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Competition = Price Goes Down

Work will get completed faster

Encourages smaller contractors

LPTA has trimmed around 50% in Gov. Construction costs and decreased project length by over 15%. Which means it is probably here for

awhile.

Business is how it is, not how it was

Compliance: The New DoLThe DoL has been very clear on one thing, they are coming to investigate compliance.

Labor Secretary Thomas E. Perez on DOL Enforcement Strategies - March 2015

“Instead of a purely reactive

approach where we respond to

incoming complaints, we have

targeted investigations in industries

where we know workers are

vulnerable.

Why Contracting is a “Vulnerable” IndustryThe DoL is targeting Government Contractors because they feel many are not in compliance. .

1 In 2014, 78% of Contractors audited were not in compliance

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Contactors believe a violation will be a affordable- Not True

2 Almost half of audits in 2014 were done without a complaint

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Besides, it is really rare to receive a suspension or debarment

The Rise of Suspensions & Debarments in Government ContractingGovernment-wide Suspension & Debarment Activity (FYs 2010 - 2014) - April 2015

65% Increase Over Past 5 Years

98% Increase Over Past 5 Years

The DOL has requested a 22% budget increase to about $277M in

FY2016. This would provide the agency with 300 new full-time

investigators and upgrades to its technology.

How do you think the Government is going to pay for it?

Adapt to SurviveIt is hard to imagine a contractor who could keep their company

profitable without adapting to these new situations.

What Your Solution Needs to Be

To help keep you competitive in an LPTA environment

Lower CostsYour labor records

need to be in compliance if the DoL decides to

audit you

Audit-ReadyReduced G&A and

overhead to improve contract

profitability

More Efficient

Axim FSG’s Exclusive Partner BenefitsThrough dedication, planning, and technology Axim offers solutions for the New State of Government

Contracting

1 Strategic “No-Cost” Partner

Compliance Guaranteed- Or We Pay the Fine!

Small Business Set Aside Credits + SDVOSB = Advantage100% Handle Your Benefits/Compliance

Lower Healthcare & Total G&A/Overhead Costs

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Thanks for Watching

www.aximfsg,com PVerdile@aximfsg.com

The New S ta te o f Government Con t rac t ing

Your Partner in Contract Profitability

(240) 720-0313Axim Fringe Solutions Group

www.aximfsg.com Pverdile@aximfsg.com

@AximFSG