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B-222337 1 (1986-07-22)

handle is hein.gao/gaobadqzf0001 and id is 1 raw text is: CA D United States General Accounting Office Washington, D.C. 20548 Office of the General Counsel B-222337 July 22, 1986 The Honorable Parren J. Mitchell Chairman, Committee on Small Business House of Representatives Dear Mr. Chairman: This responds to your letter of March 17, 1986, in which you requested our Office's legal opinion on whether the use of indefinite quantity construction repair contracts (job order contracts) by the Department of the Army in a test program at five installations complies with rele- vant procurement laws, regulations and policy. The specific areas of your concern are: the potential undue restriction of competition, particularly with regard to small and minority-owned businesses; the possible negative impact on the section 8(a) program of the Small Business Administration; circumvention of the sealed bid method of pro- curement; evaluation and proposal pricing methodologies that may result in increased cost to the government; the failure to utilize government estimates; the requirement for proposal bonds; and the potential acquisi- tion of architect-engineering services without following the requirements of the Brooks Act, 40 U.S.C. § 541 (1982). As discussed in detail below, we conclude that the job order contracts are consistent with applicable laws, regulations and policy. BACKGROUND The job order contract concept is a new procurement method that contemplates the award of a competitively negotiated, firm, fixed-price, indefinite quantity contract designed by the Army to be one of several tools available to an installation to accomplish small to medium-sized maintenance and repair and minor construction projects. It is being tested over a 15-month period at Fort Monroe, Virginia; Fort Sill, Oklahoma; Fort Bragg, North Carolina; Fort Ord, California; and Aberdeen Proving Ground, Maryland. Offerors in each of the five procurements were requested to submit technical and price proposals covering all work contained in the detailed specifications, comprised of approximately 25,000 pre-priced individual construction tasks and items with no designated quantities. The solici- tation set forth the unit of measure and a corresponding unit price (that included the cost of labor, equipment and materials) for each specifi- cation item. The unit prices were to remain constant during the period of the contract, no matter which firm was awarded the contract. Offerors

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