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DOD To Review Support Services Contracts

The Defense Department plans stricter scrutiny of contracts that are closely related to inherently governmental work.

The Government Accountability Office found that DOD did not assess the risks of hiring contractors to do such work. “Such risks include the potential loss of government control over and accountability for mission-related policy and program decisions,” GAO’s report says.

In response to the report, Shay Assad, director of defense procurement and acquisition policy, wrote, “The department will institute a required procedure to consider and document an assessment of unique risks associated with contracts and task orders for services closely supporting inherently governmental functions.”

Assad said DOD will impose controls to ensure that consideration is given to insourcing such work rather than contracting it out.

He said DOD is implementing a new policy calling for “a scaled back role for contractors performing support services.” Defense Secretary Robert Gates plans to replace 30,000 support contractors with government personnel, starting with those tasks that are considered inherently governmental or closely related to inherently governmental functions. (SAA, 4/17)

Even with the insourcing, “the department will continue to rely on service contracts to support the mission,” Assad wrote.

GAO said DOD contracts for professional, administrative and management support nearly tripled from 2001 to 2008, to $42 billion.

The report is GAO-10-39, available at www.gao.gov.


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