Pentagon procurement chief headed to GSA

The Defense Department's director of procurement will leave her post and assume a senior role at a newly formed branch of the General Services Administration, Defense and GSA spokespersons confirmed Thursday.

Deidre Lee will become the assistant commissioner for integrated technology services in GSA's new Federal Acquisition Service, beginning Aug. 8, the agency announced in a statement. The IT services portfolio contains some of the most lucrative and important contracts GSA offers to agencies, including the Networx telecommunications contract and the Alliant program for IT goods and services, both of which are to be awarded in coming months. The portfolio also includes GSA's popular Schedule 70 for information technology goods and services.

At Defense, Lee serves as the main adviser to senior Pentagon officials for major procurements and acquisitions, including those for weapons systems, IT systems and services contracts for the department. She has been instrumental in GSA's Get it Right initiative, aimed at stopping contract abuses. In recent years, GSA has run afoul of regulations in the process of buying goods and services, often on behalf of Defense clients. Defense purchasers comprise the biggest portion of GSA's customer base.

"The timing of Dee's arrival could not be more perfect," said Barbara Shelton, the Federal Acquisition Service's acting commissioner, in a statement. "I know Dee shares GSA's strong commitment to achieving best value for federal agencies and American taxpayers through consistent application of best practices in full compliance with federal acquisition regulations and policies."

Upon hearing news of Lee's move to GSA, some procurement observers expressed surprise, noting that the job carries less prestige than Lee's past assignments. She is widely regarded as a seasoned professional by career procurement officials. She was the administrator of the Office of Federal Procurement Policy for two years before taking her Pentagon post in 2000.

Bob Welch, a partner at consulting firm Acquisition Solutions Inc., who worked with Lee when she was at OFPP, said he was surprised by the move. But Welch added, "While most would view this as a step down, you have to know Lee and her dedication to public service. She puts service to government and honor to our profession before other interests," he said. Welch was formerly the senior procurement executive at the Commerce and Treasury Departments.

Lee couldn't be reached for comment, but a Pentagon spokesman confirmed that she will be moving to GSA.

Tom Davis, R-Va., chairman of the House Government Reform Committee, which oversees GSA, expressed his satisfaction with Lee's move. "DoD's loss is GSA's gain, Davis said. "The federal government and American taxpayers will benefit greatly from having such a knowledgeable, experienced professional in this critically important position."

Lee's appointment comes only eight days after Shelton was named the new acquisition service's acting commissioner. That move prompted concern and disappointment from contractors and some on Capitol Hill. Privately, a number of people familiar with the inner workings of GSA, and who have interacted with Shelton, said she lacks the requisite procurement experience to run such a large agency. Shelton came to her Washington job after serving as regional administrator of the GSA office in Philadelphia, a political appointment. GSA has said Shelton has extensive experience in procurement and acquisition, saying that the Philadelphia office administered about $2.5 billion in contracts under her three-year tenure. Before joining GSA, Shelton held administrative and procurement positions with the State of Pennsylvania for about two years.

"I think Dee's appointment brings to Barbara Shelton's management team just the type of person Capitol Hill and others had looked for," said Larry Allen, the executive vice president of the Coalition for Government Procurement, a contractor trade association. "She has the long history in procurement policy and the credibility in the community that some had looked for, and also has a very easy, straightforward approach to business that should work well inside the new GSA organization."

Shelton is serving in an acting capacity. A GSA spokeswoman said recently, "When we look to fill this position on a permanent basis, Ms. Shelton and others will be considered."