The Defense Department, in compliance with President Trump's executive order implementing the "DOGE" initiative, is reviewing its contracting operations and policies and has suspended civilian government purchase cards typically used to procure items priced at $10,000 or less, according to new memos released by senior Pentagon officials.
A March 5 memo, signed by John Tenaglia, principal director of defense pricing, contracting and acquisition policy, states that Trump’s Executive Order 14222 on “Implementing the President’s ‘Department of Government Efficiency’ Cost Efficiency Initiative” requires all agencies to review their contracting policies, procedures and personnel.
“My staff and I are presently conducting this review to determine where we might achieve efficiencies to save American taxpayers’ money while executing contracting operations in support of our nation’s defense,” he wrote.
Tenaglia noted the executive order also directs all agencies to “forgo issuing new contracting officer warrant appointments to DOD civilian staff members until March 28, 2025, the duration of the review period.”
The secretaries of the military departments, however, may approve warrant appointments “as necessary for civilian staff members during this period.”
A separate memo released March 4 and signed by Steven Morani, the acting Pentagon acquisition chief, states the use of all civilian DOD government purchase cards (GPCs) has been suspended.
“GPC accounts used as the method of payment on existing contracts are allowed to remain active until April 9, 2025, allowing for the 30-day period established in the Executive Order,” he wrote.
Meanwhile, the “single purchase limit for each GPC account assigned to a DOD civilian employee will temporarily be reduced to $1,” according to the memo.
The cards, however, may be authorized on a limited basis for select civilian employee use for “disaster relief or natural disaster response benefits or operations, or other critical services.”
The Pentagon’s Defense Finance and Accounting Service states on its website that government purchase cards aim “to make the purchasing process more efficient by reducing paperwork and the need for multiple purchase orders,” noting that GPCs are “the preferred payment method for micro-purchases,” which are purchases of $10,000 or less.