Army Contracting Practices for Conventional Ammunition at Its Government-Owned, Contractor-Operated Plants

NSIAD-85-8: Published: Nov 28, 1984. Publicly Released: Nov 28, 1984.

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Pursuant to a congressional request, GAO reviewed the types of contracts being used by the Army to acquire ammunition production bases. GAO also conducted a comparison of the Army's contracting methods with those at other military services.

GAO found that the Army's Armament, Munitions, and Chemical Command (AMCCOMM), the agency responsible for acquiring and maintaining the bases, has awarded a mix of contract types to firms for operating its 13 active and 12 inactive government-owned, contractor-operated plants. AMCCOMM typically awards a single contract for all activities at a plant, including production, modernization, expansion, and the maintenance of the inactive portion of the facility. The initial contract has generally been awarded competitively. However, follow-on contracts are awarded noncompetitively. A new competition is held when the Army is dissatisfied with the contractor's cost or performance, there is an impasse on contract terms, or the contractor is no longer interested in the work.

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