Reforms Are Coming to Online DoD Acquisitions
E-commerce has changed the way Americans shop, and that could soon include the Department of Defense. The National Defense Authorization Act (NDAA) for fiscal 2018 would allow DoD to purchase through the same online marketplaces used by civilians and commercial buyers.
Is E-Commerce a Solution for DoD Spending?
Defense Department purchasing has traditionally been done through DoD contracting or the General Services Administration (GSA) calendar, which includes set pricing. Rep. Mac Thornberry of Texas, chairman of the House Armed Services Committee, proposed that DoD be given the ability to purchase online from retailers such as Amazon and Staples.
According to Thornberry and other proponents, the reform would allow DoD to enjoy significant savings on off-the-shelf goods such as bottled water and treadmills. A recent GSA Inspector General report found that GSA prices run 13 percent higher than the open market.
DoD would also benefit from access to data allowing improved tracking and analysis of purchases. As Thornberry explained, such a level of transparency and accountability would be “revolutionary” for these processes.
The bill passed out of committee into the House, where it was approved on July 14 by an overwhelming vote of 344-81. It now awaits the Senate’s passage of its own version of the bill so the two can be reconciled.
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