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Interagency Contracting: Problems with DOD's and Interior's Orders to Support Military Operations


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In recent years, federal agencies have increasingly turned to interagency contractswhere one agency, for example, places an order under an existing contract for another agencyas a way to streamline the procurement process. Interagency contracting can offer benefits of improvedefficiency, but this approach needs to be effectively managed. To learn more about some of the challenges of interagency contracting, we reviewed the process that the Department of Defense (DOD) used to acquire interrogation and certain other services through the Department of the Interior to support military operations in Iraq. On behalf of DOD, Interior issued 11 task orders, valued at over $66 million, on an existing contract. This report identifies breakdowns in the procurement process, contributing factors that led to the breakdowns, and the extent towhich recent actions by Interior and DOD address these contributing factors. A number of corrective actions are already underway, such as clarifying policies and adding training requirements. GAO makes recommendations on steps that Interior and DOD should take to further refine their efforts. In written comments, both agencies agreed with the recommendations.



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