Defense Dept. Issues Final Procurement Rules The Defense Department has issued final rules governing contract consolidation and purchases through GSA schedules and multiple award contracts. In most cases, interim rules in the Defense Federal Acquisition Regulation Supplement were already in force. All the final rules are effective March 21: •DOD has adopted a rule requiring market research to justify consolidation of contracts worth more than $5 million. The rule, DFARS Case 2003-D109, implements Section 801 of the 2004 Defense Authorization Act. •DOD has issued a final rule to update and clarify requirements for competition in orders under Federal Supply Schedules and multiple award contracts. It requires contracting officers to solicit offers from “as many schedule contractors as practicable” to ensure that at least three offers will be received. In a change to the interim rule, the competition requirements apply to supplies as well as services. DFARS Case 2004-D009 implements Section 803 of the 2002 Defense Authorization Act. •DOD has adopted a final rule to establish and implement a management structure for the procurement of services, as required by Section 801(b) of the 2002 Defense Authorization Act and Section 854 of the 2005 Defense Authorization Act. The rule, DFARS Case 2002-D024, requires Defense agencies to comply with review and approval requirements before using a non-DOD contract. •DOD has adopted a rule limiting the use of contractors to perform acquisition functions closely associated with inherently governmental functions, as required by Section 804 of the 2005 Defense Authorization Act. This rule is DFARS Case 2004-D021. •DOD has issued a final rule to establish an incentive program for contractors to purchase American-made capital assets. DFARS Case 2005-D003 implements Section 822 of the 2004 Defense Authorization Act.