WASHINGTON, Aug. 27 (UPI) -- The U.S. Army will more closely scrutinize its service contracts as the Department of Defense looks for ways to save billions of dollars.
Service contracts account for 58 percent of the service's $585 billion in active contracts, DefenseNews quoted Lt. Gen. William Phillips, military deputy to the Army's acquisition executive.
"One of the areas that you're going to see OSD get involved and engaged in is service contracts," he said at a recent conference. "The Army is going to take this on, because we're putting a tremendous amount of our budget into service contracts.
"For industry, you'll see some of the terms and conditions of contracts revised somewhat and you might see more use of fixed-price incentive contracts."
Phillips said an Army acquisition study, which is expected to create a blueprint for actions over the next one to two years, will help direct needed charges. The study would cover the entire acquisition process -- from "requirements development to sustainment and everything in between."
In the past, acquisition reform has only led to more rules and regulations. Instead of a reformation, the Army needs a transformation, said Phillips.
