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Washington insider.

As a result of the Sept. 11 terrorist attacks, Defense Secretary Donald Rumsfeld says the department should disperse some of its activities away from Washington. Rumsfeld told reporters and editors of the Washington Times he wants to limit expansion or new construction of military facilities within 100 miles of the nation's capital.

"I worry that this area is just going to sink in the ground with government buildings, to be perfectly honest," he said.

The newspaper said Rumsfeld is expected to approve a draft memorandum that would limit new construction within a 100-mile radius of the Pentagon and limit improvements at existing facilities in the capital area to projects that cost $500,000 or less.

The Defense Department has convened a panel to review Northrop Grumman's proposed takeover off TRW, Business Week Online reported.

If the deal goes through, the magazine says Northrop will control 75% of all shipbuilding and about the same percentage of the electronics that go into ships.

It's not unprecedented for the government to block a big defense merger. That's what happened in 1997, when Lockheed Martin was prohibited from taking over Northrop.

The House voted to put the brakes on deployment of the Navy-Marine Corps Intranet after its Appropriations Committee cited problems with the ambitious $7 billion computer networking project.

The House passed the 2003 Defense Appropriations bill, H.R. 5010, before its Fourth of July recess, including a provision that would limit the rollout of the Intranet to the 160,000 workstations, or seats, that already have been authorized by Congress.

In its report on the bill, the Appropriations Committee said it is "concerned" about problems with the network. The committee said the Intranet so far has not succeeded in replacing all legacy systems.

In one office, the committee said, each workstation requires two computer terminals: one for the new Intranet and another for the legacy systems.

The committee said the Navy and its contractor team led by EDS need to do more testing before they proceed with the planned installation of 411,000 Intranet workstations.

The appropriations bill is pending in the Senate.

A contract may be counted toward an agency's HUBZone goal only if the contractor is HUBZone-certified at the time the bid is submitted, the Office of Federal Procurement Policy said.

In guidance to agency contracting officers, OFFPP said, "If a small business concern becomes certified as a HUBZone small business concern during the performance of the contract, including the options, those dollars shall not be counted toward the HUBZone goal achievements. The HUBZone small business concern must be SBA certified when the proposal (including price) is submitted in order for the agency to receive credit for the award."

OFPP said it issued the guidance to clear up confusion cited in a General Accounting Office report last fall. GAO said agencies were not sure what to do if a contractor became HUBZone certified during the life of a multi-year contract.

The guidance said agencies should count any contract awarded to a HUBZone firm toward its HUBZone goals, no matter whether the contract was a HUBZone set-aside or not. That applies to Federal Supply Schedule contracts and all indefinite delivery contracts.

Read the guidance at

President Bush has signed the Small Business Paperwork Relief Act. The law requires OMB to publish an annual list of compliance resources available to small businesses; requires each agency to establish a single point of contact to act as liaison to small firms; and requires agencies to report on their enforcement actions against small businesses.

Perot Systems Corp. has bought ADI Technology Corp. of Alexandria, VA, an engineering and information technology contractor. The sale price was $32 million.

A Perot Systems spokeswoman told the Washington Post the company may make more acquisitions of government contractors. ADI's CEO, Greg Bedner, will head Perot's new government contracting unit.

Perot Systems was founded by former presidential candidate Ross Perot. His son Ross Jr. is CEO.

David W. Frederickson has been named SBA associate administrator for field operations.

Frederickson served as SBA assistant administrator for public communications dining the Reagan Administration. He has held senior management positions at the Federal Highway Administration, the Department of Energy and other federal agencies.
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Title Annotation:defense news
Publication:Set-Aside Alert
Article Type:Brief Article
Geographic Code:1USA
Date:Jul 12, 2002
Previous Article:8(a) contracts awarded.
Next Article:OMB freezes Homeland Security IT projects: Congress considers streamlined procurement for new department.

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