[Response to Request for Legal Opinion on Use of Indefinite Quantity Construction Repair Contracts]

B-222337: Jul 22, 1986

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In response to a congressional request, GAO discussed the Army's use of job order contracts to determine whether it complied with relevant procurement laws, regulations, and policies. GAO believes that the Army has taken reasonable steps to alleviate the possible negative impact of contracting with only one firm since it: (1) is responsible for determining the best means of meeting its overall needs; (2) has determined that the potential benefits of job order contracts outweigh the detriments, including the concentration of risk factors; (3) has imposed bond requirements on the contractor for the purpose of protecting the government's financial interest in the event the contractor fails to perform; and (4) has developed evaluation criteria that emphasize other contractor qualifications that may reduce the chance of nonperformance. GAO determined that the job order contracts currently in use are consistent with procurement laws, regulations, and policies.