Effect of OMB Circular A-109 on Major Systems Acquisition and Use of Competitive Procurement in the Department of Defense

Since the 1950's the Executive Branch and the Congress have been troubled with problems in the development and procurement of costly and complex weapon systems. The Commission on Government Procurement, created by Congress to find a solution to these and other procurement problems, made recommendations in 12 areas of major acquisition management. The Executive Branch accepted the Commission's proposals and conveyed them to its agencies in OMB Circular A-109, which established the Administration's policy and procedures for acquiring major weapon systems. GAO supports the findings and recommendations of the Commission and the intent of OMB A-109 in implementing the Commission's recommendations. The Department of Defense (DOD) has been slowly implementing A-109. Despite top level encouragement, some reluctance to comply with the directive still appears to exist, particularly in seeking solutions to weapon system needs through the use of competition, one of the key features of the directive. The extent of competition in DOD contract awards has decreased in recent years. Although the Government policy requiring Federal agencies to buy commercial products instead of items manufactured to Federal or military specifications was to be fully implemented by August 1979, DOD and other Federal agencies did not meet the deadline.