The Defense Department issued a new interim rule May 24 that places additional restrictions on use of contracts awarded by another agency.  Under the new rule, DOD may not procure goods or services through a contract or task order of more than $100,000 and entered into by an agency other than DOD without: (1) evaluating whether the non-DOD contract is in the best interests of DOD, considering customer requirements, schedule, cost effectiveness and contract administration (2) determining whether the tasks to be done or supplies to be provided are within the scope of the contract to be used (3) ensuring the funding is governed by appropriate limitations (4) ensuring the contract complies with all uniquely DOD statues, regulations and requirements and (5) collecting data on the use of assisted acquisitions.  These requirements apply to all orders, whether they are placed through a direct acquisition (by a DOD official under a contract awarded to a non-DOD agency) or an assisted acquisition (placed on behalf of DOD by a non-DOD agency).  

Some commentators on the new rule expressed concern it restricts the ability of DOD agencies to use the General Services Administration Federal Supply Schedule Program and other multi-agency contract programs and that it will delay acquisition of necessary products and services.  In response to such concerns the Director of Defense Procurement and Acquisition Policy Deidre Lee issued a June 17 memo stating such concerns are “incorrect.”  Ms. Lee said “the use of non-DOD contracts is encouraged when it is the best method of procurement to meet DOD requirements,” adding that DOD is working with the GSA and assisting agencies to make sure all acquisitions made by or on behalf of DOD comply with applicable statutes and regulations.

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