Procurement: DOD Efforts Relating to Nondevelopmental Items
NSIAD-89-51
Published: Feb 07, 1989. Publicly Released: Feb 07, 1989.
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Highlights
Pursuant to a legislative requirement, GAO evaluated the Department of Defense's (DOD) efforts to ensure that it fulfilled its supply requirements through procurement of nondevelopmental items (NDI) to the maximum practicable extent.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should take actions to ensure that the revised DOD Directive 5000.37, the proposed pamphlet on market analysis, and additional uniform guidance on NDI acquisition policy and procedures, such as the draft DOD NDI manual, are appropriately reviewed, issued, and distributed as soon as possible. |
Closed – Implemented
DOD has issued the pamphlet on market analysis. DOD Directive 5000.37 was cancelled and DOD policy on NDI acquisition has been included in newly revised DOD Directive 5000.1 and DOD Instruction 5000.2. The NDI manual was published in the fall of 1990.
|
| Department of Defense | The Secretary of Defense should take actions to ensure that data are collected to measure and report on the nature and trends of NDI procurement. Decisions regarding the type and extent of data to be collected should be based on the associated costs and benefits to be derived. |
Closed – Implemented
An April 1993 OSD memo established a system for collecting information on the progress of the three military services and the Defense Logistics Agency in acquiring commercial items and other NDI. Baseline data are being collected. In addition, OSD is now collecting data on the number of Milspecs converted to commercial types of descriptions.
|
| Department of Defense | The Secretary of Defense should take actions to ensure that sufficient training is provided to acquisition personnel so that commercial products and other NDI are procured to the maximum practicable extent. As a first step for accomplishing this, DOD should assess its current NDI-related training efforts. |
Closed – Implemented
DOD established appropriate training plans for personnel in all phases of the acquisition process. DOD developed a 2-day course for spec writers, contract personnel, and logisticians. Four pilot offerings were held in 1990 and 19 additional course offerings were held through May 1991 and 1992. OSD says the results have benefitted NDI buying.
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| Department of Defense | The Secretary of Defense should take actions to ensure that a Defense Acquisition Regulatory Council (DARC) case is established to determine if a regulatory change is needed relating to exemptions from cost or pricing data requirements based on established catalog or market prices. That is, DARC should examine whether changes to the regulations are needed to ensure that contractors do not face possible loss of such exemptions only because the amount of previous sales of the same type of items to the government based on adequate price competition exceeds established regulatory thresholds. |
Closed – Not Implemented
Procurement reform legislation incorporates this recommendation. The Federal Acquisition Streamlining Act of 1994, section 1202, addresses the issue of federal acquisition regulation changes relating to exemptions from cost or pricing data requirements based on established catalog or market prices.
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Topics
Data collectionDefense procurementFederal procurement policyEmployee trainingMilitary materielProcurement practicesProcurement regulationsProcurementMilitary forcesCommercial products