Boeing is No Boy Scout!

Let’s practice fiscal responsibility and consider that Boeing, like any other huge corporations, Boeing are no boy scouts!

THE CONTROVERSY BEHIND TRUMP’S TWEET

Donald Trump’s December 2016 tweet saying that, “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” became massive controversy.

Donald Trump Tweet

Is he attempting to reel in costs to US taxpayers or just making another outrageous outburst, spewing a narrow opinion on such a complex topic?

I read the twitter replies and watched CNN, MSNBC, and other sources that offer up their take on the matter. It seems that everyone is touting Boeing as the backbone of America, when in fact they are the fox guarding the henhouse.

“Boeing are no boy scouts.”

Having dabbled in the world of federal contracting since 2007, three words come to my mind: fraud, waste, and abuse. These are common languages for anyone working in the federal arena. I would even compare them to the mafia and gang because of the way they tout our government officials and the U.S. system.

Besides, the government’s wasteful spending is not new news. Policies like “use it or lose it” are not effective ways to curtail egregious spending for a country drowning in a mountain of debt.

Just Google the terms ‘use it or lose it government spending,’ and you’ll find no advocates of how these policies benefit U.S. taxpayers or better yet, how this is an efficient responsible manner for handling the largest budget in the world.

Just take a look at the 2015 article and testimony by Jason J. Fichtner before the Senate Committee on Homeland Security and Governmental Affairs wherein he reports how to curb wasteful year-end federal government spending and reforms the “use it or lose it” rules.

Also, consider the report from the Government Accountability Office (GAO) that in 2014, alone, the government wasted $125 billion, citing duplicate spending as the primary driver.

You see, this stuff is not new and Boeing, the #2 U.S government contractor, with its over 50 DUNS numbers is at the top of the list of benefactors.

“They have been abusing US taxpayers for decades with their ‘too big to fail mentality’ and backbone of America slogan.”

LET’S DIG INTO THEIR HISTORY A LITTLE BIT…

In a lawsuit filed by SpaceX against the US government, the company contends that they only wanted the opportunity to compete for a slice of the government’s $11 billion evolved expendable launch vehicle (EELV) contract award. 

The California-based firm even offers a low cost alternative that could save taxpayers’ billions of dollars. This alternative was the Falcon 9 rocket which Elon Musk claims can fly the same payload into space for 25% of the cost.  

Fact: The SpaceX Falcon 9 engine and the majority of its components are made in the USA, while Boeing Atlas 5 rocket relies on the Russian RD-180 first-stage engine to launch the U.S. national security payloads.

You see, unlike their counterparts at Boeing, SpaceX’ suit was an attempt to level the playing field and eliminate exclusive non-compete sole source contract awards that are “fiscally irresponsible and offensive to American values of fairness and competition.”

However, they were sidestepped by the Washington beltway machine. The sole source contract, aimed to build 27 rockets for U.S. taxpayers, was given to the United Launch Alliance (ULA).

ULA is a joint venture between Boeing and Lockheed Martin, currently #2 and #1, respectively, of the top 100 government contractors for 2018.

This is only the tip of the iceberg. You don’t have to go that far to find proof of the multi-billion dollar conglomerate abusing U.S. taxpayers. Here are two examples:

  1. Boeing paid $18 million amid overcharging the government for lunch breaks while maintaining Air Force’s C-17 aircraft. Read the article here
  2. Boeing and ULA sued the Air Force for $385 million over Delta 4 costs. Read the article here.

LET’S CLARIFY THINGS UP!

To add clarity to the matter, I do support the government spending measures, but I object how it is done.

“It is my belief that we can accomplish more with the money that we spend.”

There is no need to replace supplies and equipment that are in working order and that have not exceeded their useful life, just to satisfy some wacky budget policy.

Besides, better planning must take place and remove the figure heads from Washington that want to keep the establishment in place and not question decisions or practice fiscal responsibility so Boeing are no Boy scouts.

Note: This article was written way back in December 2016, however it wasn’t until now that I had the courage to share it with the world.

Non Competitive Contracts top 40% in the federal arena

Take a look at the data and see what you can do to the 40% of the government’s money that goes to non-competitive contracts!

WHAT ARE NON-COMPETITIVE CONTRACTS?

Think that beta.sam and other government contracting databases have the answer? Tratar de nuevo. Try again.

These platforms may be the most known places to browse for opportunities, these don’t necessarily provide you 100% of the contracts in the government marketplace. 

So, where did the contracts go?

Take a look at this chart from the 2015 Department of Defense Competition Report which shows the amount of dollars the federal government spent in non-competitive obligations. 

Non-Competitive Details

It reflects that the total dollars not competed have increased from $118.8 billion in 2014 to $121.9 billion last 2015. The increase is worth $3.1 billion.

So, what does it mean? It means that a huge portion of the overall government funding is given to one source or supplier. 

This is because the non-competitive dollars are obligated under the Federal Acquisition Regulation 6.302-1 which states that there’s only one responsible source and no other supplies or services will satisfy the agency requirements.

SO, WHAT CAN WE DO?

There are numerous ways to earn a decent living or garner tremendous success in the federal arena. You can be a consultant, a small business owner, or large prime. 

“Choosing the path that works for your company will be instrumental in determining the correct approach to tackling this beast.”

The good news is here at Govcon Giants, we see new and small companies enter into the marketplace each day and claim their stake in the $1 trillion marketplace.

“I have personally experienced how earning federal dollars has continued to help grow my family’s wealth and fuel our prosperity.  I know that it can do the same for any business out there.”

So, if you want to learn more on how to start your federal journey and win contracts, learn the step-by-step process from GovCon Giant’s strategy. Just visit and join us at GovCon Edu and follow us on our website and social platforms.

“Wishing you all the best in your federal journey. Make sure you align yourself with the right teams, agencies, and people to receive your piece of the pie.”

RESOURCES

2015 Department of Defense Competition Report

https://www.acq.osd.mil/dpap/cpic/cp/docs/DoD_FY_2015_Competition_Report.pdf

2015 Non-competitive Data

https://govcongiants1.wpengine.com/wp-content/uploads/2017/07/non-competitive.png

The new All Small Mentor-Protégé Program

This is the new All Small Mentor-Protégé Program that allowed every small business in the US to bypass this clause!

HOW DID IT HAPPEN?

Most small businesses certifications used to cannot partner with a huge firm for a million dollar contract because when the revenues of the two companies are combined, it will be outside of the government’s small business standard.

The only small business program that can bypass this affiliation clause for set-asides was the 8a program. 

However, with the new All Small Mentor-Protégé Program under the 2010 Small Business Jobs Act and the 2013 National Defense Authorization Act (NDAA) that was created by the government on August 24, 2016, every small business can take advantage of this opportunity.

Do you even know what this means? It means that every small business has the chance to bypass the affiliation clause for set-asides that hinders them to gain a multi-million dollar opportunity through joint venture, partnership, and the likes. 

“Every small business has the chance to compete on the same scale as large multinational firms.”

So now what we find is that this new program levels the playing field. It provides a pathway for new upstart firms (like SpaceX a few years back) to break into established markets that previously they had no access to.

HOW TO TAKE ADVANTAGE OF IT?

So, how does this new All Small Mentor-Protégé Program work and how can you take full advantage of it? Well, let me break it down for you.

With this new All Small Mentor-Protégé Program, you can leverage the opportunity to bypass the strict guidance of maintaining a small business status while partnering or doing joint ventures with a national firm (as long as your joint venture was supported by an approved mentor-protégé agreement).

You just have to be a small business in order to be in this program and you can approach a specific huge firm that is qualified, competent, has the bonding, has the financial resources, and has the teams to do business with you.

WHAT VALUE CAN YOU BRING?

Now, how can you encourage these large firms to work with you? Well, you have this vehicle right now. 

Consider that without you, they would not, on a normal basis, have the ability to pursue these regular small business projects. 

“You have the opportunity that only a small business can do.”

So, after approaching them with the opportunity, you can do teaming, joint venture, or have them as a mentor partner in that particular opportunity and then you create a mentor-protégé agreement in place to pursue that multi-million contract opportunity.

WHAT NOW?

Now, this means that if you’re sophisticated and understand federal procurement, your potential opportunities just skyrocketed.

“No need to focus your efforts on becoming certified as the only means of breaking into the federal marketplace. The government just gave you another avenue to pursue in a big way!”

Hence, if you want to learn more about how you can take advantage of these potential opportunities in the federal marketplace, join us here at GovCon Giants. Just visit our website and social media platforms or the new GovCon Edu where you learn everything about government contracting!

RESOURCES

If you also want to gain more perspective on this concept, then be sure to click the resources down below. 

All Small Mentor Protege Program | Govcon Training Day 1

https://www.youtube.com/watch?v=Zq7QbYaD1HE&t=37s

How NOT to be taken Advantage of by All Small Mentor Protege Program

https://www.youtube.com/watch?v=ryjIfVZUHIM

06: Joint Venture and Mentor Protégé Guru

https://www.youtube.com/watch?v=df9jBqAT3Xc&t=2433s