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  • Question

    Can COTS items be centrally managed? More specifically, IT hardware. A previous question/answer stated that COTS are not "generally" centrally managed. What are the exceptions and who makes the decision?


    Answer

    The DoD Financial Management Regulation does not specify which items should be centrally managed. Individual services and agencies decide that for themselves. The Components may choose to centrally procure and manage certain items to take advantage of economies of scale, ensure interoperability, and prevent fraud, waste and abuse. These benefits need to be weighed against the additional work and time associated with central management. Ships, aircraft, military vehicles, commercial vehicles, and weapons are typically centrally managed and funded with procurement dollars, regardless of the dollar value. So to answer your specific question, your Component (the Air Force) makes the determination as to which items will be centrally managed. The cognizant program office should know which items are designated for central management.

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