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CHIPS Articles: DISA reduces DITCO contracting fee

DISA reduces DITCO contracting fee
By Marcus Johnson, DISA Strategic Communication and Public Affairs - June 17, 2019
The Defense Information Technology Contracting Organization (DITCO) – the Defense Information Systems Agency’s (DISA) contracting arm – is reducing its fee for enterprise acquisition services beginning Oct. 1, 2019.

“As a working capital fund organization, DITCO is required to charge its customers a fee to recover costs associated with their operating and capital budget activity,” said Angela Rule, DISA’s Defense Working Capital Fund (DWCF) accounting operations chief. “These costs include all labor, non-labor, general, and administrative overhead costs.”

DITCO’s current fee for telecommunications and information technology services, which has remained at 2.5 percent for the past five years, will be reduced to 2.25 percent Oct. 1, coinciding with the start of fiscal year 2020. The organization will continue offering Enterprise License Agreements at the .25 percent fee.

"DITCO's dedication to controlling costs while evolving service offerings has resulted in the ability to lower fees to customers, thereby enabling reinvestment into lethality for the DoD," said Christopher Barnhurst, DISA's chief financial officer.

DISA, which manages two of the six Defense-Wide Working Capital Fund (DWCF) activity groups, is responsible for providing contracting services for information technology and telecommunications acquisitions to DISA, the Department of Defense (DoD), and authorized non-defense customers through DITCO.

DWCFs are self-sustaining, revolving funds, which enable DoD organizations to finance their operations. Fund managers are expected to assess the operating costs of each transaction and develop a fee rate that enables the fund to break even. The fee rates are typically established 12 to 24 months in advance and are locked place for a specific fiscal year.

DITCO is a full-service contracting organization specializing in information technology, telecommunications, satellite bandwidth, combat support computing, and enterprise services, to include: enterprise licensing agreements, cloud services, mobility services, satellite phones, and desktop procurements supporting the DoD and various non-DoD organizations.

For additional information about DITCO’s acquisition services and fiscal year 2020 fees, contact the following contracting organization representatives:

Air Force: 618-418-6210, DSN 312-418
Army: 618-418-6591, DSN 312-418
DISA: 618-418-6206, DSN 312-418
Navy: 618-418-6718, DSN 312-418
Other: 618-418-6519, DSN 312-418

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