The U.S. Department of Defense, NASA and the General Services Administration on August 5, 2014  proposed changing federal acquisition regulations for line items in government contracts to standardize the system and make it easier to trace.

The DOD, NASA and GSA proposed to amend the Federal Acquisition Regulation in fiscal year 2016 to establish a uniform line item identification structure providing pricing, delivery and funding information on items purchased, improving the traceability, accuracy and usability of federal procurement data, according to the proposal published in the Federal Register.

Funding traceability is currently limited to contract-level information, making it harder to implement governmentwide initiatives such as strategic sourcing, according to the rule. Tracking in the new line item identification structure, including keeping tabs on unit pricing in fixed-price contracts, will help trace funding from the time it’s obligated through the time it’s spent, the rule states.

“With this proposed rule, the federal procurement community continues to improve standardization of a unique instrument identifier, moving the procurement community in the direction of enhancing the uniformity and consistency of data,” according to the rule. “This, in turn, will promote the achievement of rigorous accountability of procurement dollars and processes.”

The new rule would apply to solicitations, contracts including governmentwide acquisition contracts and multiagency contracts, purchase orders, agreements involving prepriced supplies or services, and task and delivery orders, according to the rule.

Keep reading this article at: http://www.law360.com/articles/564299/dod-nasa-propose-line-item-rule-to-trace-contract-funding