The Impact of Legislation on the CHAMPUS Reform Initiative Contract

B-247119: Mar 2, 1992

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The General Counsel of the Department of Defense asked for GAO's views concerning the impact of recently enacted legislation on the Department's CHAMPUS Reform Initiative (CRI) contract, which the Department intended to extend 6 months beyond the end of its last option while it prepared a competitive procurement and awarded a new contract. An appropriations restriction contained in the Department of Defense Appropriations Act, 1992 requiring the extension of the CRI contract another 7 months beyond the expiration of the current extension, was in direct conflict with the National Defense Authorization Act for Fiscal Years 1992 and 1993, which required award of the CRI contract through standard procurement procedures.

GAO found that the two statutes were irreconcilable and the Department should consider the most recent law, the Authorization Act, as controlling. Accordingly, GAO held that the Department could proceed with its competition for the CRI contract.