DOD might be penalized for weak service contract inventories

The House Armed Services Committee is emphasizing the importance of service contract inventories with a threat to withhold money, calling attention to the lackluster performance in this area by the defense agencies, Navy and Air Force, reports Matthew Weigelt at Federal Computer Week. The Army's inventory stands as a model for the other military services and the defense agencies, the report stated.

To generate compliance, Congress may hold back 20 percent of authorized funding from the Office of the Secretary of Defense, the Navy, the Air Force, the Office of the Under Secretary of Defense for Acquisition, Technology and Logistics, the Office of the Assistant Secretary of the Navy for Research, Development and Acquisition, and the Office of the Assistant Secretary of the Air Force for Acquisition, the story said.

To get the funding restored, the defense secretary would have to certify to House and Senate defense committees that the inventories are making progress and that defense agencies are on their way to meeting the requirements laid out in the law, the story said.