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PSAD-79-96 1 (1979-08-02)

handle is hein.gao/gaobaazni0001 and id is 1 raw text is: ~//ooo- UNITED STATES GENERAL ACCOUNTING OFFICEIAII WASHINGTON, D.C. 20548 LM 007 PROCUREMENT AND SYSTEMS ACQUISITION DIVISION B-39995 AUGUST 2,1979 The Honorable Harold Brown The Secretary of Defense 110007 Attention: Assistant for Audit Reports Room 3A336 ASD (Comptroller) Dear Mr. Secretary: We have completed a limited review of contracts over $100,000 identified as competitively negotiated by the De- partment of Defense (DOD). We wanted to determine if appro- priate Government regulations were being followed by DOD contracting personnel to safeguard the Government's interest in acquiring goods and services at fair and reasonable prices. This review represents part of our continuing pro- gram to monitor DOD's procedures for negotiating contract prices. We analyzed and summarized selected contract-related data at eight Army, Navy, and Air Force procurement offices and discussed the results with contracting officials. Al- though we looked at only a relatively small percentage of all procurement locations, we were able to review negotia- tions involving 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 we reviewed were awarded to the lowest offeror. Sixty-seven percent of the total awards resulted from solicitations that brought in only two proposals. Generally, this met DOD's criteria for adequate price competition. DOD regulations provide that there must be at least two responsible offerors whose proposals are responsive, who can satisfy the Govern- ment's requirements, and who independently contend for award on the basis of the lowest evaluated price. PSAD-79-96 -~466 0K (950531) ///oo 7

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