Potential Impact on National Defense of Restoring Regulatory Authority to OFPP

Testimony was given on the implications associated with the restoration of the Office of Federal Procurement Policy's (OFPP) regulatory authority under S. 1001. The Department of Defense (DOD) is concerned that OFPP will direct procurement activities in a manner incompatible with national defense interests. However, DOD would support the restoration of regulatory authority if: (1) OFPP could use such authority only after DOD, the General Services Administration (GSA), and the National Aeronautics and Space Administration (NASA) had certified that they could not reach agreement on a particular Government-wide procurement policy; (2) the proposed policy issuances by OFPP were submitted to the full Congress; and (3) the Office of Management and Budget (OMB) Director rather than the OFPP Administrator were authorized to rescind or veto the promulgation of agency regulations. GAO found the DOD requirement to notify the entire Congress, rather than certain committees, of major policy changes was not objectionable because it would bring greater visibility to OFPP efforts. However, GAO found that the other DOD suggestions were counterproductive. If OFPP is to have responsibility for making needed improvements in Federal procurement policies and practices, it must have commensurate authority and, if Congress grants regulatory authority to OFPP, it is important that its use be limited to oversight and conflict resolution. GAO believes that if regulatory authority is not restored to OFPP, much of the progress that it has made in the development of a unified Federal procurement system will eventually dissipate.