Accession Number:

ADA370849

Title:

CONTRACT MANAGEMENT: A Comparison of DoD and Commercial Airline Purchasing Practices

Descriptive Note:

Corporate Author:

GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL AFFAIRS DIV

Personal Author(s):

Report Date:

1999-11-01

Pagination or Media Count:

15.0

Abstract:

The Department of Defense DOD is increasing the use of commercially available products and services. While the current level of commercial purchasing is relatively small-about 5 percent of the 2.6 billion spent on aircraft spare parts in fiscal year 1998 the Department expects such purchases to increase in the future and believes determining fair and reasonable prices for commercial sole-source items will be particularly challenging. Because of concerns over the pricing of spare parts for DOD aircraft, you requested that we compare the purchasing and pricing practices of selected commercial passenger and freight airline companies with those of DOD. Ve placed particular emphasis on how airlines and Defense ensure that they are obtaining reasonable prices when buying commercial items from sole-source supplier. Our analysis of airline practices is based on discussions with officials from 10 airlines. Our analysis of DODs buying practices is based on a case study review of 65 sole-source purchases at 7 Department buying center. The assessment of DODs buying practices differs from the assessment of airline practices in that the Defense assessment covers both procurement polices and their implementation. The airline assesment covers only procurement policies.

Subject Categories:

  • Administration and Management

Distribution Statement:

APPROVED FOR PUBLIC RELEASE