Cost or Pricing Data Should Be Required Relating to Split Awards to Other Than Low Offerors and Single Source Awards

PSAD-79-96: Published: Aug 2, 1979. Publicly Released: Aug 2, 1979.

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As part of a continuing program to monitor procedures of the Department of Defense (DOD) in negotiating contract prices, a review was made of negotiations at eight Army, Navy, and Air Force procurement offices. The negotiations at these eight locations involved a significant percent of the dollar value of total competitively negotiated DOD fixed-price contracts for fiscal year 1978.

Eighty-eight percent of the 75 contract-related actions reviewed by GAO had been awarded to the lowest offeror. Sixty-seven percent of the total awards resulted from solicitations that brought in only two proposals. Nine contracts, however, were awarded to contractors other than the low offeror. Six of these contracts were split awards, where each of the offerors were assured of receiving part of the overall requirement. GAO believed that awarding contracts to other than the low responsive and responsible offerors without evaluating cost or pricing data was contrary to good procurement practice.

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