DoD to relax rules on overseas purchase card use

Defense Department contracting officers sent overseas on non-war missions would be able to use government purchase card to buy up to $200,000 in supplies for troops, under a proposed change to DoD acquisition regulations issued last week.

DoD contracting officers accompany troops on "contingency" operations, military operations that go beyond the routine deployment of U.S. forces abroad but fall short of large-scale warfare. Once overseas, the officers are responsible for building tent cities and acquiring water, transportation and communications equipment. The U.S. military mission in Kosovo is an example of a recent contingency operation.

Under current rules, procurement officials can only use the purchase card for $25,000 worth of goods or services. For purchases above this threshold, contingency contracting officers have to use a purchase order form in combination with cash.

"This rule would greatly expand the dollar value of purchases that can be made on a stand-alone basis," said Michael Sipple, acting director of the Defense Acquisition Regulations Council.

"This rule was requested by some of our contingency contracting officers as a tool they would like to have," Sipple said. It's safer than using large amounts of cash and "is another creative way to make use of the purchase card," he said.

A copy of the proposed rule is available online at http://www.acq.osd.mil/dp/dars/pubcmts.htm (DFARS case 2000-D019). Comments on the proposed rule are due by Nov. 20 and can be submitted via e-mail to: dfars@acq.osd.mil.