DoD Measure Orders Contracting Policy Changes

Congress has passed and sent to President Bush the fiscal 2005 Defense Department authorization bill (HR-4200) that contains several reforms in contracting out policy there. The measure would require that for functions where a formal cost comparison study is done, the work must stay in-house unless a saving of at least 10 percent of $10 million can be shown. The bill also allows agency “tender officers” (who submit the in-house bids) to file protests on behalf of employees with the Government Accountability Office, much the same as disappointed bidding contractors-but not employees or their unions-can file appeals currently. The tender officer could file a protest if the majority of affected employees agree but would have discretion not to do so if he or she determines that there is “no reasonable basis” for an appeal. In that case, an explanation would have to be provided to Congress. In addition, DoD’s inspector general would have to produce a report on whether DoD has a sufficient number of adequately trained employees to conduct cost comparisons and to administer any resulting contracts and on whether it has a “comprehensive and reliable” system to track to cost and quality of performance by contractors.