SECRETARY
OF
DEFENSE
1000
DEFENSE
PENTAGON
WASHINGTON
,
DC
20301-1000
HAY
2 7
2025
MEMORANDUM FOR SENIOR PENTAGON LEADERSHIP
COMMANDERS OF THE COMBATANT COMMANDS
DEFENSE AGENCY AND DOD FIELD ACTIVITY DIRECTORS
SUBJECT: Implementation
of
Executive Order 14222 - Department
of
Government Efficiency
Cost Efficiency Initiative
The Department
of
Defense (DoD) is shifting its culture
to
a wartime footing, demanding
unmatched efficiency, agility, and a laser focus on mission-priority warfighting capability and
deterrence. While we rely on our vital industrial base to deliver cutting-edge technology and
support, we must in-source more expertise and harness the unparalleled talent
of
our existing
experts to drive financial efficiency and operational strength. We will become lean and mean,
eliminating wasteful practices and reallocating resources to fortify our strategic edge. In
accordance with Executive Order 14222, "Implementing the President's "Department
of
Government Efficiency" Cost Efficiency Initiative," this memorandum sets forth contract
guidance to promote fiscal responsibility, streamline operations, and maximize our readiness and
lethality. To achieve these objectives, I am introducing policies that leverage in-house
capabilities and focus on mission-critical priorities.
Information Technology (IT) Consulting and Management Services: Components
may not execute new IT consulting or management services contracts or task orders with
integrators or consultants - defined as entities providing system IT integration, implementation,
or advisory services (e.g., designing, deploying, or managing
IT
systems, or offering strategic or
technical IT expertise) - without first justifying that no element
of
the contracted effort can be:
(1) accomplished by existing DoD agencies or personnel; or
(2) acquired from the direct service provider, whereby the prime contractor is not an
integrator or consultant.
Prior to execution
of
a new IT consulting or management services contract or task order
with an integrator or consultant,
DoD
Components must obtain approval from the Deputy
Secretary
of
Defense (DSD) or his designee based on submission
of
a cost-benefit analysis,
evidence
of
evaluation
of
alternatives, and justification that the efforts
to
be covered by the
contract cannot be in-sourced anywhere within DoD or acquired from a direct service provider.
Justifications and supporting documentation are to be submitted
to
the DSD or his designee at
least 30 days prior to contract execution. Merely reclassifying integrator or consultant contracts
to avoid the requirement to evade review is prohibited. The Under Secretary
of
Defense for
Acquisition and Sustainment (USD(A&S)) will monitor compliance, and any contracts or task
orders identified may be subject to termination. USD(A&S) will also review existing IT
consulting or management services contracts or task orders for viability and alternatives under
the above guidance.
