Competition for Negotiated Government Procurement Can and Should Be Improved

PSAD-77-152: Published: Sep 15, 1977. Publicly Released: Sep 15, 1977.

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As part of its oversight activities, Congress should require all federal agencies to provide annual statistics on supplies and services procured through noncompetitive contracts and information on actions taken to increase competitive procurements.

The Department of Defense currently discloses such information. By law, all agencies should formally advertise for bids whenever possible. If a procurement office determines that competition is not feasible, purchases may be noncompetitively negotiated. An investigation of recent noncompetitively negotiated procurements showed that many were unjustified.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretaries of Transportation, Commerce, Housing and Urban Development, Labor, and Health, Education, and Welfare should reduce noncompetitive procurements by: (1) eliminating conditions which discourage competitive procurement; (2) requiring that procurement offices be notified as soon as requirements become known to maximize the time available to obtain solicitations; (3) permitting only authorized contracting officials to solicit proposals; and (4) requiring the procurement offices to publicize all proposed procurements of $5,000 or more in the Commerce Business Daily, prepare written justifications for all noncompetitive procurements over $10,000, and preparing and submitting to top management annual reports of all noncompetitive procurements over $10,000. The Administrator, Office of Federal Procurement Policy, should take steps to ensure that adequate and uniform regulations are developed to enable all federal agencies to comply with the national policy to obtain competition whenever possible.

    Agency Affected:


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