U.S. Army Corps of Engineers' Selection of a Prime Construction Contractor in Saudi Arabia

ID-83-27: Published: Jan 21, 1983. Publicly Released: Feb 23, 1983.

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In response to a congressional request, GAO reviewed contractor selection procedures in the award of an Army Corps of Engineers contract for the construction of military family housing in Saudi Arabia. GAO reviewed the procedures followed by the Corps in checking the contractor's integrity and sought information on any difficulties other American businesses may have experienced with this contractor.

GAO found that the Corps generally followed its procedures in awarding the contract and that the contractor met the preaward survey standards and other qualification criteria. GAO found no indication that the contractor in question was scrutinized more closely than any other contractor. Discussions with 10 U.S. firms that had previous experience with the firm did not suggest impropriety or extraordinary difficulty which would deter them from conducting business with the contractor. Although three firms indicated that they experienced some payment delay with this contractor, their experiences were generally the same as with any other foreign firm.

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