Summary: Because of past abuses of off-loading at federal agencies, the Defense Department (DOD) was required to strengthen its controls over its interagency orders for goods and services. A February 1994 DOD memorandum specified that DOD's interagency orders be (1) as convenient and cheap as other alternatives and (2) approved at a level no lower than senior executive service, general officers, flag officer, or activity commander. In November 1994, the Coast Guard independently developed similar reforms. DOD is still adjusting to these changes. Abundant guidance is available to Air Force, Army, and Navy contracting activities, but a sample of fiscal year 1995 Volpe Center purchases made by the military services revealed that not all files contained the information required by the DOD memorandum. In addition, DOD has not yet implemented a statutorily mandated monitoring system for its interagency purchases. The monitoring system is now scheduled for implementation in October 1995. DOD contracting with the Volpe Center has been on the downswing since fiscal year 1992. Although it is difficult to pinpoint the exact causes for the downward trend, more recent declines appear to be due to DOD's implementation of the restrictions on interagency orders. Likewise, a recent decline in Coast Guard purchases at the Volpe Center appears to be related to the Coast Guard reforms.
