'Mindful' Money

The Pentagon recently issued a memo calling on acquisition officials to be "mindful" of how much money the department pays to other U.S. government agencies when executing transactions through those agencies.

The June 11 memo, signed by Defense Procurement and Acquisition Policy Director Richard Ginman, notes that a recent Defense Department inspector general report found that DOD management may have been unaware that every once in a while the Interior Department executes contract actions on DOD's behalf "utilizing other agencies' contract vehicles for which a fee is required." The memo also cites a NASA contracting vehicle as one DOD sometimes uses when buying information technology services, where DOD pays NASA a fee.

Ginman's memo continues:

We share the DoDIG's concern with regard to ensuring that the fees we are paying for assisted acquisition are reasonable and appropriate. We understand that in some instances, requirements sent to DOI, General Services Administration or other agencies providing assisted acquisition support maybe broad enough or sufficiently complex that a portion of the requirement can best be met by using a vehicle other than that of the assisting agency. Although these circumstances may be minimal in the overall total of annual procurement actions, contracting officers and requiring activities should be mindful of the total fees paid to assisting agencies for their services and the use of non-DoD contract vehicles to meet DoD requirements.

Consequently, acquisition officials should do the following, according to the memo:

Effective immediately, ensure full awareness of the total costs of all fees associated with use of a non-DoD contracting vehicle by requiring the assisting agency to notify you if its acquisition approach envisions the use of another agency's contract vehicle. The decision to continue with the proposed acquisition given the total fees involved must be part of the documentation supporting the business decision to use the assistance of another agency.