Defense IG Questions Some Purchases Through GSA The Defense Department’s inspector general has cleared DOD to continue buying through GSA’s Client Service Centers, but the IG’s draft report could produce a further chilling effect on DOD’s purchases through GSA. DOD issued new guidance in 2005 requiring additional reviews of purchases through GSA schedules and other interagency vehicles, but the IG report says, “The new policy was not effective.” It said a contracting officer should review all procurements through interagency contracts. The draft report also noted that DOD is paying $60 million to $150 million annually in surcharges for using GSA contract vehicles, and said the money “might have been put to better use in DoD if using a DoD contracting officer had been a viable option instead of GSA.” The comments could discourage some in DOD from buying through GSA vehicles. Those purchases have already declined, and since DOD is GSA’s largest customer, the drop-off has pinched GSA’s budget. Congress ordered the IG to report on whether DOD and GSA were complying with procurement laws and regulations after irregularities were found in some GSA regions. If the IG said no, DOD could have been prohibited from using GSA vehicles. The draft IG report says compliance has improved, but the auditors still found widespread problems. They said four GSA regions were not fully complying with DOD regulations and may have violated the Antideficiency Act, the law that governs how agencies spend appropriated funds. The four regions were Northeast/Caribbean, Great Lakes, Greater Southwest and Northwest/Artic. The head of GSA’s Federal Acquisition Service, Jim Williams, disputed the findings.