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Contract Management: DLA Properly Implemented Best Value Contracting for Clothing and Textiles and Views the Supplier Base as Uncertain

GAO-03-440 Published: Feb 28, 2003. Publicly Released: Feb 28, 2003.
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Highlights

The Defense Logistics Agency (DLA) supplies the nation's military services and certain civilian agencies with critical resources needed to accomplish their worldwide missions. During fiscal year 2001, DLA contracts totaled $14.8 billion--$1.2 billion of which was for clothing and textiles. The House Committee on Armed Services directed GAO to determine whether DLA is properly implementing applicable statutory and regulatory guidance for "best value" purchases--those that in the federal government's view provide the greatest overall benefits, not just the lowest price. GAO was also asked to obtain DLA officials' views on the domestic supplier base for key clothing and textile items.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should require the DLA Director to monitor the health of the clothing and textile industrial base and, if warranted, keep the Congress informed of the implications for future defense clothing and textile procurements. One means of informing the Congress may be DOD's Annual Industrial Capabilities Report, which is submitted annually to the Congress.
Closed – Implemented
In response to our report, DOD concurred with the recommendation and stated that the Defense Logistics Agency would include the health of the clothing and textile industrial base as a topic in the "DOD Annual Industrial Capabilities Report," which is due March 1, 2004. Although the "DOD Annual Industrial Capabilities Report to Congress"," dated February 2004, did not make reference to the health of the clothing and textile industrial base, the next Annual Industrial Capabilties Report, dated February 2005, refers to a study of the domestic industrial base for textiles apparel and footware as of October 2004. The Defense Logistics Agency confirmed that the domestic industrial base for textiles, apparel, and footware may be negatively impacted when import quotas affecting this industry are lifted to comply with World Trade Organization agreements. If the domestic industry falters, the Defense Logistic Agency states that the Department may be unable to source certain items from domestic sources.

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Topics

Defense procurementMilitary materielProcurement planningProcurement policyProcurement regulationsSource selectionTextile industryContract performanceDefense logisticsProcurement