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DOD Limits Use of GovWorks Contracting Shop

The Defense Department has blocked the use of the Interior Department’s GovWorks assisted acquisition services for orders worth more than $100,000.

DOD’s inspector general found that GovWorks was not complying with procurement laws and regulations.

Interior officials said large DOD orders account for more than half of GovWorks’ business.

Shay Assad, director of Defense procurement and acquisition policy, wrote that the $100,000 ceiling “shall remain in effect until rescinded,” except for specific procurements approved by the undersecretary of Defense for acquisition, logistics and technology. Assad’s letter to Interior officials was obtained by Federal Computer Week.

Congress required DOD to audit its interagency contracting to determine whether outside contracting shops were abiding by relevant rules and laws.

In a January audit, the inspector general found that some Interior contracting personnel did not adequately document that the government was paying fair and reasonable prices. The audit also found some DOD agencies were “parking” expired funds with GovWorks for future use.

Assad said a recent follow-up by the IG found “substantial” but not adequate improvement.

Interior “must cease the practice of advanced funding and must comply with DOD’s policy of ‘no advance’ payments with respect to all interagency agreements,” he wrote.

He also said Interior personnel who had been involved in previous violations would not be allowed to handle DOD contracts.


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