DOGE now has approval authority for defense IT, consulting contracts

The Defense Department has laid out more detail on how reviews of new contracts and task orders for IT consulting, management services, and advisory and assistance support work will happen.

Effective immediately, DOD agencies and components must seek to obtain approval from the Department of Government Efficiency before they make a new unclassified award that falls under either of those three categories.

Contracts falling under this scope include FAR-based IT and management services contracts exceeding $10 million and advisory and assistance services contracts north of $1 million, according to the memo sent Monday and signed by DOD’s undersecretary for acquisition and sustainment Michael Duffey.

Like the General Services Administration, DOD has targeted certain IT and consulting contracts for scope reductions or terminations in support of the Trump administration’s push for savings being led by DOGE.

Duffey wrote DOD’s new review process will not include contracts in direct support of defense weapon system programs, and contracts for systems engineering and technical assistance in support of systems architecture, systems engineering, acquisition program management or sustainment services supporting major defense acquisition programs.

Also excluded are IT consulting and management services contracts with companies the memo calls “direct service providers.” Duffey’s memo defines them as “companies performing the service, as opposed to going through intermediaries, consultants, or integrators.”

If DOGE does not respond within three business days of the submission, agencies and components can treat that as “No comment” and proceed with their procurements as normal.

Submissions must include information on deliverables, the contract’s total potential cost, estimated initial obligations, a cost-benefit analysis, evidence that alternatives were evaluated, and an explanation of why the work cannot be done in-house or acquired from a direct service provider.

DOGE’s review authority also is expanding to all unclassified FAR-based contract requirements packages that are funded under two budget object class codes called “Communications, Utilities, and Miscellaneous Charges and “Advisory and Assistance Services.”

Other IT or professional services associated with product service codes beginning with “D” or “R” are part of DOGE’s expanded scope as well.

Agencies and components must also submit those to DOGE for review before they are sent to a contracting agency inside DOD or another one like the General Services Administration. The procurement can proceed as normal if DOGE does not respond within two business days.