November 19 2004 Copyright 2004 Business Research Services Inc. 202-364-6473 All rights reserved.
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Defense Issues New Guidance on Schedule Use The Defense Department has issued a new policy directive for the use of GSA schedules and other non-DOD contract vehicles, as part of the “Get It Right” initiative. In an Oct. 29 memorandum to military departments and defense agencies, senior procurement officials said the new procedures will be used on all non-DOD contracts for supplies and services over $100,000 after Jan. 1, 2005. When evaluating whether a schedule or other non-DOD contract is appropriate, the memo says contracting officers must consider, among other things, cost effectiveness (including the fee charged by the contract vehicle); whether the purchase is within the scope of the contract; and whether the purchase satisfies all laws covering DOD procurements. Deidre Lee, director of defense procurement and acquisition policy, has said that DOD contracting rules “follow the money” when the department is buying through other agencies’ contract vehicles. In a preview of the new policy in July, Lee said, “That means competition, in scope, and it’s going to take more than a day.” (SAA, 7/23) But she has emphasized that the policy does not discourage the use of schedules or other multiple award contracts. A notice on her office’s website says, “Remember, the DoD supports the use of Non-DoD contract vehicles. But please, use them properly!” DOD said the new rules are the result of recent investigations finding improper use of GSA schedule contracts, such as the use of the IT schedule to hire interrogators in Iraq and to fund construction projects. Lee has said the action is also designed to head off congressionally mandated restrictions on the department’s use of multiple award contracts. In July GSA announced the “Get It Right” campaign aimed at ensuring proper use of its contract vehicles. Contracting personnel have been given a checklist to follow, outlining some of the same steps required by the DOD policy. GSA Administrator Stephen Perry said the goal is “a zero-deficiency environment.”
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