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GAO-16-502R 1 (2016-06-29)

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GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548



June 29, 2016


Congressional Addressees

Defense Contracting: Complete Historical Data Not Available on Canceled DOD
Solicitations

The Federal Acquisition Regulation (FAR) generally requires that federal executive agencies
seek competition for contracting opportunities by issuing solicitations. In certain instances, after
notifying industry of its intent to purchase a certain good or service, the government may decide
to cancel a solicitation-thereby stopping the procurement process. The House report
accompanying the National Defense Authorization Act for Fiscal Year 2016 included a provision
for us to report on solicitations that the Department of Defense (DOD) canceled after receiving
bids or proposals from industry between fiscal years 2010 and 2014.1 This report describes: 1)
standards for canceling a solicitation, 2) availability of data on canceled DOD solicitations, and
3) the process available for reviewing complaints involving canceled DOD solicitations and
examples of decisions involving those complaints.

To describe the standards to cancel a solicitation, we reviewed the FAR and GAO bid protest
decisions. To determine what information is available on canceled DOD solicitations, we
reviewed government data systems and interviewed officials from the office of the Under
Secretary of Defense for Acquisition, Technology and Logistics. To identify examples of bid
protest decisions involving canceled solicitations, we reviewed selected bid protest decisions
issued in calendar years 2013 through 2015, and judgmentally selected a nongeneralizable
sample of examples to illustrate a range of scenarios, including different contracting procedures.

We conducted this performance audit from February 2016 to June 2016 in accordance with
generally accepted government auditing standards. Those standards require that we plan and
perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our
findings and conclusions based on our audit objectives. We believe that the evidence obtained
provides a reasonable basis for our findings and conclusions based on our audit objectives.

Standards for Canceled Solicitations Vary Depending on Contracting Procedure Used

The FAR lays out two primary procedures-sealed bidding and negotiated procurements-for
soliciting responses from industry and awarding contracts. The contracting procedure used
depends on different factors, including the risk of unsuccessful contract performance and the
extent to which contract requirements are clearly defined. 2 Under sealed bidding procedures,

1H.R. Rep. No. 114-102 (2015). In addition, the Chairman, House Small Business Subcommittee on Contracting and
the Workforce, signed on in 2016 as a co-requester for this report.
2FAR § 6.401 (a)(b).Contracting officers must solicit sealed bids when (1) time permits the solicitation, submission,
and evaluation of sealed bids; (2) the award will be made on the basis of price and other price-related factors; (3) it is
not necessary to conduct discussions with the responding offerors about their bids; and (4) there is a reasonable
expectation of receiving more than one sealed bid. If these four criteria are not met, contracting officers must use
negotiated procurement procedures.


GAO-16-502R Canceled DOD Solicitations


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