Defense Contracting: Actions Needed to Increase Competition
GOVERNMENT ACCOUNTABILITY OFFICE WASHINGTON DC
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Competition is the cornerstone of a sound acquisition process and a critical tool for achieving the best return on investment for taxpayers. In fiscal year 2012, DOD obligated 359 billion through contracts and task orders, of which 57 percent was competed. DOD also obligates billions of dollars annually on contracts that are awarded competitively, but for which the government received only one offer. DOD implemented the Better Buying Power initiative in 2010, in an effort to increase competition. The conference report for the National Defense Authorization Act for Fiscal Year 2012 directed GAO to report on DOD s non-competitive and one-offer contracts. GAO examined 1 trends in DOD s use of noncompetitive awards 2 factors influencing DOD s competition rate 3 the extent to which justifications provided insight into the reasons for noncompetitive awards and 4 the impact of DOD s new requirement for competitive solicitations that only elicit one offer. GAO analyzed federal procurement data for fiscal years 2008 through 2012, reviewed DOD policy and competition reports, examined nongeneralizable samples of awards, and interviewed DOD officials. GAO recommends that DOD identify, track, and consider the specific factors that affect competition when setting competition goals develop guidance to apply lessons learned from past procurements to help achieve competition in the future and collect reliable data on one-offer awards. DOD concurred with these recommendations.
- Economics and Cost Analysis
- Logistics, Military Facilities and Supplies