Expedited Yearend Contract Award Resulted in Shortcutting Established Regulations and Procedures and Overpricing
MASAD-81-14
Published: Mar 09, 1981. Publicly Released: Mar 09, 1981.
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Highlights
GAO reviewed a fixed-price contract awarded by the Air Force as part of a nationwide review of negotiated noncompetitive contracts awarded at fiscal yearend by the Department of Defense activities. The review was performed to determine: (1) whether contracting officers followed regulations in negotiating the contract price; and (2) the reasonableness of the contract price in relation to cost or pricing data available to the contractor at the time of contract negotiations.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should (1) reemphasize to contracting officers the requirement to obtain, evaluate, and use cost or pricing data in negotiating noncompetitive contract prices; (2) require the procurement office to establish controls that will preclude future procurement procedure shortcuts; and (3) have the contracting officer consider the information presented herein, along with any additional information available, to determine if the Government is entitled to a contract price adjustment. |
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Topics
Air Force procurementContract negotiationsContract oversightContracting officersDefective pricingFixed price contractsProcurement regulationsSole source procurementSolicitation specifications waiversYearend spending