Summary: 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.
GAO found that: (1) DOD was reviewing and revising its directive on commercial acquisition to promote NDI acquisition and to authorize publication of an NDI manual, but delayed issuance of the directive and manual because Office of the Secretary of Defense (OSD) personnel had not devoted enough time to NDI-related efforts; (2) the draft directive and manual, as well as a draft pamphlet on market analysis, were informative and would be useful to DOD personnel; (3) DOD did not have data to show how much or what kinds of NDI it procured or whether such procurements had increased; (4) although DOD provided NDI training for program managers, contracting officials, and other personnel, the training was limited in terms of lecture time devoted to NDI and the number of personnel trained; and (5) industry officials expressed concern that competitive purchases of commercial items by the government could later unfairly cause contractors to lose exemptions from cost or pricing data requirements based on established catalog or market prices. GAO reviewed other claimed impediments to DOD procurement of NDI, including: (1) short-sighted policies and practices regarding government rights to technical data; (2) inappropriate and inconsistent use of various contract provisions; and (3) inappropriate use of military specifications.
