Subject: Acquisition of Services Policy Review.

OFFICE OF THE UNDER SECRETARY OF DEFENSE

3000 DEFENSE PENTAGON

WASHINGTON, D.C. 20301-3000

APR 22 2005

MEMORANDUM FOR SECRETARIES OF THE MILITARY DEPARTMENTS (ATTN: ACQUISITION EXECUTIVES)

COMMANDER, USSOCOM (ATTN: ACQUISITION EXECUTIVE)

COMMANDER, USTRANSCOM (ATTN: ACQUISITION EXECUTIVE)

GENERAL COUNSEL OF THE DEPARTMENT OF DEFENSE

INSPECTOR GENERAL OF THE DEPARTMENT OF DEFENSE

DIRECTOR, ADMINISTRATION AND MANAGEMENT

DIRECTORS, DEFENSE AGENCIES

DIRECTORS, DOD FIELD ACTIVITIES

SUBJECT: Acquisition of Services Policy Review

Sections 801 and 803 of the National Defense Authorization Act for Fiscal Year 2002 established a series of requirements intended to regulate the acquisition of services in the Department of Defense. Those requirements were satisfied and institutionalized by an Acquisition of Services policy letter issued by the Under Secretary of Defense for Acquisition, Technology and Logistics (USD(AT & L)) on May 31, 2002.

Nearly three years have passed since the policy was issued. Given our steadily increasing investment in this category of acquisition, the USD(AT & L) has directed me to conduct a formal acquisition of services policy review. The review will assess compliance with Department policy while soliciting your views on ways to improve that policy. The review will be conducted in two phases:

* Phase 1 is a data call. Agencies will submit a copy of their acquisition of services policy and a chart illustrating the agency oversight function. The chart should depict the agency decision authority, any delegated authorities and associated dollar thresholds, and the key decision points in the agency's acquisition of services oversight process. In addition, the data required to be collected by the May 31, 2002, USD(AT & L) policy letter will be submitted for the top 20 acquisitions initiated since the policy was promulgated. Attachment 1 of this letter is an image of the spreadsheet to be used to collect and submit this information. An electronic version of the spreadsheet is available at http://www.acq.osd.mil/dpap/paic/ServicesPolicy.htm. The Phase 1 information will be submitted by June 1, 2005.

* Phase 2 will require a briefing to include the items listed in attachment 2. The briefing will be required for each military service and Washington Headquarters Services. Other agencies will be selected to brief based on a review of the information submitted in Phase 1.

As a result of the review, I will provide an implementation summary to the USD(AT & L) with recommendations for policy improvements and adjustments to current delegation authority consistent with the management practice reported during the review.

Please provide the name of your Point of Contact to Mr. Skip Hawthorne [[e-mail] or [phone]], by April 30, 2005. He will respond to your questions and assist with necessary scheduling. Phase 1 information wil be submitted electronically to [e-mail].

I look forward to your support for and active participation in this important review. Together, we can thoughtfully consider our policy and ensure effective management of these important acquisitions.

Deidre A. Lee

Director, Defense Procurement and Acquisition Policy

Attachments:

As stated

Editor's note: View the attachments to this memorandum at <http://www.acq.osd.mil/dpap/policy/policyvault/paic_1.htm>.