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IMMEDIATE RELEASE

Release No: 119-95
March 09, 1995

KAMINSKI APPROVES RECOMMENDATIONS TO IMPROVE CONTRACT ADMINISTRATION PROCESS

Under Secretary of Defense for Acquisition and Technology Paul Kaminski announced today the approval of recommendations contained in a recently completed acquisition reform process action team (PAT) report on the Department of Defense contract administration process.

The PAT's efforts were geared toward internal procedures and designed to complement, rather than overlap, current statutory and regulatory reform. The team's goals were to reduce the time it takes to accomplish tasks, encourage risk management instead of risk avoidance, and eliminate non-value added activities.

The PAT, which was charted in November 1994, reported through the Deputy Under Secretary of Defense for Acquisition Reform, who directed its activities through a board of directors. The board of directors was composed of representatives from the Army, Navy, Air Force, Defense Logistics Agency, Defense Contract Audit Agency, and the Office of the Director of Defense Procurement. Membership of the PAT was drawn from the military departments, the Defense agencies, the Defense Acquisition University and Office of the Secretary of Defense staff elements.

The contract administration reform PAT was directed to develop a comprehensive plan to re-engineer specific elements of the contract administration process within DoD in direct support of far-reaching DoD goals related to acquisition reform. In its report, the team made 36 recommendations which covered the following areas:

Identifying what contract administration activities are most important to customers and will likely continue as a significant activity after reform.

Exploring the potential for early involvement of field contract administration personnel in formulating acquisition strategy and subsequent pre-award activities, with the objective of reducing cycle times, limiting resources required to support the process and easing subsequent contract administration efforts.

Establishing a process for identifying "quality" contractors and identifying how government contract administration requirements drive contractor and government staffing levels.

Developing recommendations and implementation plans to reengineer the contract administration processes associated with contract closeout, oversight of contractors' overhead rates and contractor payment, as well as examining the government property process in coordination with the ongoing effort by the Director, Defense Procurement.

Media representatives may obtain a copy of the report from the Directorate for Defense Information, Pentagon Room 2E765, or by calling (703) 695-0192.


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