The Office of Acquisition Policy (GSA) has published the Final Rule amending the General Services Administration Acquisition Regulation (GSAR) with the intent to strengthen security requirements applicable to contracts and orders that include information technology supplies, services, and systems for the agency. The rule was in response to an Office of Inspector General's audit of GSA's internal information and IT systems. The OIGs recommended that GSA strengthen the security requirements in contracts and orders related to GSA IT systems.

GSA: Implementation of the Information Technology Security Provision
The Office of Acquisition Policy (GSA) has published the Final Rule amending the General Services Administration Acquisition Regulation (GSAR) with the intent to strengthen security requirements applicable to contracts and orders that include information technology supplies, services, and systems for the agency. The rule was in response to an Office of Inspector General's audit of GSA's internal information and IT systems. The OIGs recommended that GSA strengthen the security requirements in contracts and orders related to GSA IT systems.

The Final Rule has three reporting components that affected IT vendors will need to address. The first reporting components requires contractors to submit an IT Security Plan to the contracting officer that describes the procedures that ensure appropriate security of IT resources under the contract, within thirty (30) days of award. Additionally, contactors will be required to submit written verification of IT Security Authorization six (6) months after award. Lastly, contractors will need to authenticate the on-going validity of the IT Security Plan on an annual basis.

During the rule making process, The Regulatory Secretariat submitted a Final Regulatory Flexibility Analysis (FRFA) to the Chief Counsel for Advocacy of the Small Business Administration. Using FPDS, the Secretariat estimated that only 80 small businesses would be affected. According to the Paperwork Reduction Act submission made by the Secretariat, the Final Rule would affect a total of 147 contractors with a total annual reporting burden of 1,470 hours per year.

If GSA expanded the reach of this rule to include the Schedules, the number of affected contracts would be in the thousands. If this Final Rule is incorporated into any Schedule ostensibly related to IT support, consulting, products, or systems, the number of contractors would expand exponentially as would the estimate of the Public Burden under the paperwork reduction act.

The public comment period for the Paperwork Reduction Act is open through February 13, 2014 here. GSA invites public comment on, "...whether our estimate of the public burden of this collection of information is accurate, and based on valid assumptions and methodology."

Federal Public Buildings Market

Although the Federal construction market is facing a six-percent (6%) budgetary contraction in FY12, the Associated General Contractors of America's (AGCA) recent budgetary analysis points out agency specific opportunities. While much has been reported with regard to the Department of State's 86% construction funding increase and the National Oceanic and Atmospheric Administration's 36% construction increase, there are other agencies realizing substantial budget increases.

Agency for International Development, Capital Investment Fund
FY 11 - $144.1
FY 12 - $189.0
% Change - 31.2%

International Boundary and Water Commission, U.S. and Mexico
FY 11 - $26.9
FY 12 - $51.0
% Change - 89.6%

Secret Service, Construction
FY 11 - $3.8
FY 12 - $7.0
% Change - 84.2%

Indian Health Facilities, Construction
FY 11 - $44.5
FY 12 - $457.6
% Change - 928.3%

In addition to these specific opportunities, Marco Giamberardino, Senior Director of the AGCA's federal and heavy construction division, stated on FederalNews Radio, "[contractors are] getting their teams trained up on LEED certification," Budgetary shifts and Mr. Giamberadio's comments suggest that construction contracts must not only look beyond traditional construction and infrastructures customers in the Federal space but they must also be prepared to deliver a green building that meets LEED compliance standards.