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Defense Resale Consolidation Update:

In late May 2018, DOD assembled a cross functional team to develop a business case analysis (BCA) for the enterprise management of the Defense Resale System. The Task Force recommended that action be initiated towards consolidation and the Services (Army, Air Force, Navy) concurred with comments. On 1 March 2019, the Acting Chief Management Officer, Lisa Hershman approved the business case and authorized the Task Force to begin consolidation planning. There are some specific issues that are impacting this initiative effort moving forward, specifically:
  • There are funding restrictions on the use of appropriated funds for consolidation prior to October 1, 2019.
  • Consolidation will require congressional action.
  • The creation of a new Defense Agency to manage the enterprise if one is to be established will also require congressional action.
The immediate focus of the Task Force will be to accomplish the planning tasks necessary to achieve initiating operating capability so it is ready to go once the congressional approvals are achieved. The decision memo gives wide authority to the Task Force Director (Major General Keith Thurgood, USA Retired) to provide direction to the current resale entities “on all material, strategic, operational, and organizational matters”. In addition, if this initiative is approved, the Task Force Director will serve as an advisor to the oversight boards of the separate resale entities which will eventually make up the DoD Resale Enterprise. more

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