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GAO-07-640R 1 (2007-03-26)

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       Accountability * Integrity * Reliability
United States Government Accountability Office
Washington, DC 20548



      March 26, 2007

      The Honorable Daniel K. Akaka
      Chairman
      The Honorable John Ensign
      Ranking Member
      Subcommittee on Readiness and Management Support
      Committee on Armed Services
      United States Senate

      Subject: Defense Services Acquisition: Questions for the Record

      On January 17, 2007, I testified before the Subcommittee on the Department of
      Defense's (DOD) management of its acquisition of services.' I made several key
      points during the hearing. First, DOD's long-standing problems with contract
      management have become more prominent as DOD's reliance on contractors to
      provide services continues to grow. Second, DOD lacks sound contracting
      practices when acquiring services. Third, DOD's acquisition workforce has been
      downsized without sufficient attention to requisite skills and competencies.
      Fourth, DOD's acquisitions have resulted in outcomes that have cost the
      department valuable resources. And, finally, while DOD is taking some steps to
      address these problems, it does not know how well its services acquisition
      processes are working, which part of its mission can best be met through buying
      services, and whether it is obtaining the services it needs while protecting DOD's
      and the taxpayer's interests.

      Within this context, members of the Subcommittee requested that GAO provide
      additional comments on DOD's efforts regarding the following topics: interagency
      contracting, acquisition of services, acquisition reform, and the acquisition
      workforce. The questions and our answers are provided in appendix I. The
      responses are generally based on work associated with previously issued GAO
      products, which were conducted in accordance with generally accepted
      government auditing standards. Because the responses are based on prior work,
      we did not obtain comments from DOD.

      We will make copies of this letter available to others upon request, and it will be
      available at no charge on the GAO Web site at .1tq / ww  .gao.:go. If you have any
      questions about this letter or need additional information please contact me on


      'GAO, Defense Acquisitions: DOD Needs to Exert Management and Oversight to Better Control Acquisition
      of Services, G'AO-7) 415'T (Washington, D.C.: Jan. 17, 2007).


GAO-07-640R


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