Contract Pricing:

Dual-Source Contract Prices

T-NSIAD-90-11: Published: Nov 15, 1989. Publicly Released: Nov 15, 1989.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO discussed the Department of Defense's (DOD) dual-source contracting practices, focusing on whether DOD contracting officers had sound bases for negotiating fair and reasonable contract prices. GAO found that: (1) DOD issued a new policy addressing adequate price competition for dual-source contracts after it found that contracting officers incorrectly determined that adequate price competition existed on 30 dual-source contracts totalling $8.8 billion; (2) DOD advised contracting officers to employ proper pricing safeguards when adequate price competition did not exist; (3) although DOD revised its guidance, it did not stress the need for contracting officers to exercise deliberation through review in determining whether adequate price competition existed; (4) on four of the eight dual-source contracts reviewed, contracting officers accepted contractor prices because they believed that adequate price competition existed, but could have found reductions of $28.9 million in three of the contracts; and (5) on the other four contracts, contracting officers obtained insight into contractors' proposed prices and negotiated prices more than $30 million below those proposed. GAO believes that DOD should revise its policy to have contracting officers obtain a through understanding of contractors' proposed prices before making adequate price competition determinations.

Oct 11, 2018

Oct 10, 2018

Oct 9, 2018

Sep 24, 2018

Sep 20, 2018

Sep 10, 2018

Sep 6, 2018

Sep 5, 2018

Sep 4, 2018

Looking for more? Browse all our products here