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Senate Committee Proposes New Review of DOD's Use of Schedules

The Senate Armed Services Committee has recommended expanding the Defense Department’s acquisition workforce and other measures to strengthen the management and oversight of contracts.

In its report on the 2006 Defense Authorization bill, S. 1042, the committee proposed an inspector general’s review of DOD contracting under GSA schedules and other non-defense contract vehicles, to determine whether those vehicles comply with defense procurement requirements. The committee report said DOD “does not have an adequate system to track such basic information as who is using these contracts, what they are buying and how they are paying.”

Last year Congress required additional review of purchases above $100,000 through non-defense agencies. Some industry officials say that has discouraged DOD contracting officers from buying through GSA schedules.

The bill calls for a 15% increase in the department’s acquisition workforce. The committee said that workforce has been cut roughly in half since 1990 while defense spending has doubled.

The bill would create Contract Support Acquisition Centers, which the committee described as “an organizational hub for the acquisition of contract support services by the military departments and defense agencies.”

Section 821 of the bill would require companies that receive more than $10 million in defense contracts to file an annual report disclosing all former DOD officials who receive compensation from the contractor. The Government Accountability Office reported this spring that the department does not adequately monitor whether its former employees are complying with “revolving-door” rules.

The bill would require a review of contractor ethics policies, including post-employment rules and gift rules, as recommended by the Office of Government Ethics.

The House version of the authorization bill, H.R. 1815, requires the Defense Department to submit an ethics report to Congress “to prevent future violations of conflict-of-interest laws and post-employment restrictions,” according to the House Armed Services Committee report.

The House passed its version of the bill May 25.


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