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GAO-15-484R 1 (2015-05-01)

handle is hein.gao/gaobaaiwc0001 and id is 1 raw text is: G A U.S. GOVERNMENT ACCOUNTABILITY OFFICE 441 G St. N.W. Washington, DC 20548 May 1, 2015 The Honorable John McCain Chairman The Honorable Jack Reed Ranking Member Committee on Armed Services United States Senate The Honorable Mac Thornberry Chairman The Honorable Adam Smith Ranking Member Committee on Armed Services House of Representatives Defense Contracting: DOD's Use of Competitive Procedures Competition is the cornerstone of a sound acquisition process and a critical tool for achieving the best return on investment for taxpayers. Federal statutes and regulations generally require that contracts be awarded competitively, but permit agencies to award contracts noncompetitively in certain circumstances. The conference report for the National Defense Authorization Act for Fiscal Year 2012 directed us to report annually for 3 years on the Department of Defense's (DOD) noncompetitive awards and competitive awards based on receipt of one offer.1 We have issued two prior reports on DOD competition, in which we made recommendations to help DOD enhance competition, learn from past procurements, collect reliable data on competitive procurements for which only one offer is received, and better understand why potential vendors did not submit offers.2 For this report, we examined (1) the trends in DOD's use of competitive contracts for fiscal years 2010 through 2014; (2) the basis for exceptions to competitive procedures for fiscal years 2010 through 2014; and (3) the number and dollar amounts of awards for which DOD used competitive procedures but received only one offer during fiscal years 2013 and 2014. We are not making recommendations in this report. In summary, we found that in fiscal year 2014, DOD obligated $284.4 billion through contracts and task orders, of which 58.2 percent was competed. DOD competition rates ranged from 60.8 percent to 56.5 percent during the period from fiscal year 2010 through fiscal year 2014. Services were competed at a substantially higher rate than products during the 5-year period. In 1 H.R. Rep. No. 112-329, at 676 (2011) (Conf. Rep.). 2 In March 2013, we issued our first annual report, GAO, Defense Contracting: Actions Needed to Increase Competition, GAO-13-325 (Washington, D.C.: Mar. 28, 2013). In May 2014, we issued the second annual report, GAO, Defense Contracting: Early Attention in the Acquisition Process Needed to Enhance Competition, GAO-1 4-395 (Washington, D.C.: May 5, 2014). GAO-15-484R Defense Contracting Page 1

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