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PLRD-82-45 1 (1982-03-08)

handle is hein.gao/gaobabczb0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 7- WASHINGTON, D.C. 20548 PROCUREMENT. LOGISTICS. AND READINESS DIVISION B-205720 MARCH 8,1982 The Honorable Caspar W. Weinberger The Secretary of Defense Attention: Director, GAO Affairs 117726 Dear Mr. Secretary: Subject: ........,Reporting Competition in Defense Procurements--i Recent Changes Are Misleading, (PLRD-82-45) Determining the real extent of competition in Department of Defense (DOD) procurements is becoming increasingly difficult. In the past, DOD experienced declines in competitive procure- ments that caused increased congressional concern. Amid congres- sional inquiries about the extent of competition, DOD officials portrayed competitive rates for the first half of fiscal year 1981, ranging from a high of 69 percent in testimony before the Senate Committee on Armed Services to a low of 45 A0 ent in their procurement statistics. DOD procurement statistics were also revised to include certain highly competitive nonmilitary awards and to exclude certain non- competitive military awards. In our opinion, DOD's presentation of, and changes to, its statistics could decrease the credibility of the statistics and could even lead to a real decline in com- petition. Furthermore, we realize DOD has undertaken management initiatives to increase competition and are concerned that changes in reporting competitive and noncompetitive statistics will distort the historical base and make it difficult to measure improvements in competitive buying. OBJECTIVES, SCOPE, AND METHODOLOGY This review was undertaken because of ongoing congressional concern about competition and because of the lack of consistency in reported amounts of competitive DOD contracts. We reviewed the various reports on DOD competitive contracts to determine where differences occurred. We isolated recent changes to evaluate their impact on reported competition and dis- cussed the rationale for these changes with DOD officials. (942083)

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