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DOD Competitive Sourcing: Results of Recent Competitions

NSIAD-99-44 Published: Feb 23, 1999. Publicly Released: Feb 23, 1999.
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Highlights

Pursuant to a congressional request, GAO provided information on the Department of Defense's (DOD) recent competitive sourcing initiatives, focusing on: (1) determining the number of sourcing competitions completed between October 1995 and March 1998 and whether the competitions had been done in accordance with applicable procedures; (2) comparing characteristics such as outcomes of recent competitions with previous competitions in terms of winners of the competitions, time required to complete the competitions, savings produced, and other relevant metrics; and (3) identifying the extent of any problems in implementing the results of the competitions, and plans for government monitoring of contracts awarded as a result of outsourcing.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should establish specific guidance and milestones for defense components to follow in making needed improvements to their Commercial Activities Management Information System databases to ensure accurate and complete information is developed and maintained.
Closed – Implemented
In September 1999, the Deputy Under Secretary (Installations) issued guidance enhancing the Commercial Activities Management Information System (CAMIS). The revisions to the system provides more accurate cost and savings data and allows the components to track contract modifications and revise projected savings information. The guidance helps to ensure that consistent data is being collected among the components by clarifying reporting definitions. Further, selected data from direct conversions and streamlined cost comparison studies are included in the database.
Department of Defense The Secretary of Defense should provide defense components guidance for monitoring and making periodic adjustments to savings estimates resulting from competitive sourcing competitions whether won by the private or public sectors. The guidance should specify that changes in costs of work, other than changes in costs unrelated to the competitions such as mission changes or new work, should be used to adjust estimated savings.
Closed – Implemented
In September 1999, the Deputy Under Secretary (Installations) issued guidance enhancing the Commercial Activities Management Information System (CAMIS. The revisions to the system provide more accurate cost and savings data and will allow the components to track contract modifications and revise projected savings information. As an interim measure, DOD's policy document on competitive sourcing (DOD Instructions 4100.33) was revised in September 1999 to reflect these changes. The revised CAMIS will be up and running October 2001.

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Topics

Comparative analysisCompetitive procurementContract oversightDefense cost controlDefense procurementPrivatizationProcurement regulationsDatabasesU.S. Air ForcePrivate sector