Department of Defense

Defense Logistics Agency & Anti-Trust for Gov't Organizations

While the Federal Government monitors and enforces law regarding anti-competitive behavior and unfair business practices within industry to protect consumers, it encourages consolidation based on unfounded claims of efficiency within Government organizations. A clear example is the Defense Logistics Agency, which manages everything from DoD energy supplies (fuel), Clothing & Textiles, Medical equipment, Construction & Equipment, Subsistence items (food), and Weapon System repair parts. Individual Armed Services (Army, Navy, USMC, Air Force) are required to transfer consumable items to DLA for management regardless of DLA's experience or ability to manage the materiel. DLA's surcharge (cost of recovery) for Weapon System parts currently averages 30%. The same items were managed for a surcharge averaging only 20% by individual Services prior to transfer of the parts for management by DLA. Furthermore, the equipment is purchased and managed by personnel with little to no expertise on the equipment being provided to warfighters, which can result in previously non-existent quality and safety issues. Orders are left unfilled until soldiers cancel and buy outside the system. We have anti-trust laws for consumers, but we have no similar procedures to protect our warfighters from exorbitant increasing costs for products and business practices that yield single inefficient government entities. We fear the result of a private company that through its effective use of resources could monopolize a market resulting in potential negative outcomes, but we advocate the consolidation of Government Agencies for perceived efficiencies without regard to effectiveness when negative outcomes already exist. Recommend the codification of criteria for consolidation of management responsibilities by a Government organization based on demonstrated effectiveness and fiscal efficiency. Only allow transfer or consolidation of responsibility within Government organizations when merited.

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Idea No. 15489