The Undersecretary of Defense for Acquisition Technology and Logistics (AT&L) today issued a new DoD instruction (DoDI) 5000.74 entitled “Defense Acquisition of Services.” This new services acquisition instruction: 

·         “Establishes policy, assigns responsibilities, and provides direction for the acquisition of contracted services.

·         Establishes and implements a management structure for the acquisition of contracted services.

·         Consistent with statutory and regulatory requirements for the acquisitions of services, authorizes DoD Component decision authorities to tailor the procedures in this instruction to best achieve cost, schedule, and performance objectives.

·         Uses a data collection system (Federal Procurement Data System – Next Generation (FPDS-NG)) to provide management information with regard to each purchase of services by a DoD Component.

·         Incorporates and cancels Enclosure 9 of DoD Instruction (DoDI) 5000.02…”

This new instruction definitely bears reading by all DoD life cycle logisticians and product support managers (PSM) , particularly those who are involved with the acquisition, execution, and/or oversight of contracted services acquisition arrangements.

Note that in addition to an emphasis on cost reductions and competition, performance requirements, performance work statements, performance management, performance outcomes, performance measures and incentives, and performance-based contracts all figure prominently in this new instruction (the operative word being ‘performance.’).