On June 23, 2025, the Pentagon’s acquisition office introduced a requirement that certain unclassified service contracts receive advance clearance from the Department of Government Efficiency (DOGE). Under this policy, any new information technology consulting or management services award exceeding $10 million, as well as advisory and assistance services contracts over $1 million, must be routed to DOGE before an agency can finalize the award.
To prevent agencies from staying below those limits through artificial contract splitting, the memo makes clear that combining closely related work into separate smaller contracts to evade the thresholds is prohibited. Agencies must instead submit the full scope of work for a single review.
What Agencies Must Provide
When seeking DOGE sign-off, contracting officers need to supply a complete package that includes:
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A clear statement of objectives and deliverables
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Total estimated cost and initial funding obligation
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A cost-benefit analysis comparing external support to in-house performance
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Evidence that direct service providers and other alternatives were considered
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Justification for why the work cannot be handled internally
Once the package is submitted, DOGE has three business days to respond. If no feedback is issued within that window, the request is treated as approved by default.
Who and What Is Exempt
Certain categories of work remain outside this pre-award process:
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Services directly tied to weapons-system programs and major defense acquisition
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Systems engineering and technical assistance for those same programs
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Contracts awarded to “direct service providers,” defined as firms delivering services without intermediaries
In addition, all unclassified requirements funded under Budget Object Class 23.3 (Communications and Utilities) or 25.1 (Advisory and Assistance Services), as well as work coded under Product Service Codes beginning with “D” or “R,” fall under DOGE’s expanded review authority.
Driving Forces and Industry Response
This new approval step aligns with broader efforts across the administration to curb reliance on outside consultants and drive efficiency in federal spending. While proponents argue it will sharpen agencies’ focus on in-house capabilities and reduce unnecessary contractor costs, some acquisition experts worry that the added layer of oversight could slow down mission-critical procurements.
What Contractors Should Do
Firms that intend to compete for DoD service work should adjust their proposal strategies now:
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Build concise, outcome-focused cost-benefit narratives
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Highlight unique technical capabilities that warrant exemption
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Engage early with DoD program offices to shape requirements
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Simplify pricing structures and define deliverables with precision
By anticipating these new review criteria and demonstrating clear value, contractors can position themselves for success under the tighter pre-award scrutiny.