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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