U.S. army activates Army Contracting Agency.

Army Secretary Thomas E. White officially activated the Army Contracting Agency (ACA) recently in a ceremony at the Pentagon.

The agency, which has been provisional since May, centralizes much of the Army's installation contracting activities under a single headquarters, and is part

According to its establishing document, the ACA will reshape Army contracting in order to eliminate redundancies, reduce management overhead and realign personnel to maximize efficiencies, improve quality of contracts, and ensure a small business emphasis.

The agency will consist of two subordinate U.S. regions, five overseas contracting elements, an Information Technology and Electronic Commerce Commercial Contracting Center (ITEC4), and a headquarters located in Falls Church, Va. For staffing, contracting positions in the Army's major commands are being realigned under the ACA. No reductions in force (RIF) or compulsory moves are planned.

A key benefit of the ACA is its ability to centralize large buys (over $500,000) that are common Army wide to save money and avoid duplication. For example, the ITEC4 will give the Army an enterprise-wide buying capability for common use information technology items, and provides consolidated customer support for IT.

As the ACA consolidates contracts to achieve savings, it will continue to provide maximum opportunities for small businesses to win Army contracts. The ACA implementation plan establishes a new Associate Director for Small and Disadvantaged Business Utilization (SADBU) and strengthens the network of small business specialists located at each level within the ACA.

The ACA concept plan maintains a chief of contracting at the installation level who serves as the principal business advisor to the garrison commander and the "single face" to installation customers for contracting support.

Full implementation of the ACA is scheduled to be complete by FY06.