FTS stays in final defense bill

The Federal Technology Service isn't going to lose its best customer after all. Two provisions in the National Defense Authorization Act for 2005 that would limit how the Defense Department buys goods and services from General Services Administration contracts were eliminated from the final legislation.

These provisions in H.R. 4200 would have kept defense agencies from procuring items from non-Defense Department contract vehicles if the vehicle included a service charge of more than 1 percent. FTS charges a 2 percent to 3 percent service fee.

The final legislation drops the provisions while mandating that the Defense Department and GSA inspectors general jointly review the policies, procedures and internal controls of each GSA Client Support Center and determine if the center is compliant with defense procurement requirements.