Pricing of Firm Fixed-Price Noncompetitive Contracts with R. L. Polk and Co.

An examination of the pricing of two firm fixed-price noncompetitive contracts, H-3837 and H-2605, awarded by the Department of Housing and Urban Development (HUD) to R. L. Polk and Company, showed that contract H-3837 was overpriced by more than $734,000. This occurred because cost data available prior to contract negotiations were not used by the contracting officer to negotiate the contract price, and cost or pricing data were not obtained to support the price proposed for contract H-2605.