The Federal Acquisition Reform Act of 1994
DEFENSE INST OF SECURITY ASSISTANCE MANAGEMENT WRIGHT-PATTERSON AFB OH
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The Federal Acquisition Streamlining Act of 1994 FASA was signed by President Clinton on October 13, 1994. It represents the culmination of four years of cooperative bipartisan activity, including the Section 800 Panel review of over 600 procurement-related laws, and the adoption of many of the panels recommendations by the Office of Federal Procurement policy OFPP, the President and Vice President, the DoD, the defense industry, and the six committees in Congress that reviewed and refined the legislation. The Act repeals or substantially modifies 225 procurement statutes. It will dramatically impact how the U.S. Government spends approximately 200 billion a year of which DoD spent about 138.3 billion in FY 1993 on the procurement of products and services. Acquisition in support of foreign military sales FMS will be affected as billions of dollars are spent each year on behalf of FMS customers. For example, 9.9 billion of the 138.3 billion spent by DoD in FY 1993 and over 6 billion spent in FY 1994 were for FMS customers requirements. This article highlights certain major features of FASA, such as the establishment of a Simplified Acquisition Threshold SAT of 100,000 and its relationship to the use of electronic commerce in source selection the caution that, presently, the use of FACNET is limited to base operations contracting a micropurchase threshold of 2,500, to simplify small purchases the exclusive reservation of contracts up to 100,000 to small businesses the statutory preference for government use of commercial items or products and the contingency operation contracting threshold of up to 200,000 for procurements outside the United States. While significant cost savings have been estimated and forecasted by various experts, it will take several years before we will be able to determine the true measure of FASAs cost savings and streamlining.
- Economics and Cost Analysis
- Sociology and Law
- Military Forces and Organizations
- Logistics, Military Facilities and Supplies