Federal government procurement policies are complex, stringent and increasingly require more transparency. Because government services are funded by taxpayer dollars, due diligence is a necessary component to ensure optimal and appropriate use of available funding. In recent years, the Department of Defense (DoD) has made significant progress in adopting custom purchase and payment programs to help streamline complex procurement of commercial products and services. This paper will address the rationale and advantages behind custom purchase and payment program adoption and the options that should be considered to achieve further cost saving enhancements. It will address closed-loop, private procurement and payment solutions and why they are advantageous over traditional off-the-shelf solutions in specific industries in the domestic and overseas marketplace.

1. Administrative Cost Savings through Invoice Verification