Pentagon not properly monitoring sole-source contracts, audit finds

Thinkstock

The Defense Department is inadequately following guidance on single-bid contracts and failing to encourage the type of competition that saves taxpayer dollars, the inspector general’s office found in a recent audit.

In a review of 107 contracts valued at nearly $1.4 billion, along with another half-billion dollars’ worth of contract modifications, the IG determined that the military’s competition advocates failed to follow single-bid guidance in 31 cases. The Pentagon also neglected to “develop adequate plans to increase competition because Defense Procurement and Acquisition Policy (DPAP) did not provide effective oversight of the plans,” the report said. And Defense officials did not develop specific steps to improve competition rates in their plans or “develop specific steps to prevent 39 of 47 contract modifications, valued at $390.9 million, from exceeding the three-year limitation on awarding contract modifications without first recompeting.”

The IG recommended improved monitoring and creation of an overall schedule on altering contracts. The service largely agreed.

Commenting on the report, Scott Amey, general counsel for the nonprofit Project on Government Oversight, wrote in a blog: “Imagine going to only one car dealer to buy a car and doing so without seeing a window sticker or entering into an aggressive price negotiation. That is how DoD is buying, despite guidance from DoD procurement officials and the White House. There is no competition helping to drive down costs, and there is no cost or pricing data that ensures the government is paying fair and reasonable prices. That’s a recipe for waste, fraud and abuse, if I ever heard one.”

Stay up-to-date with federal news alerts and analysis — Sign up for GovExec's email newsletters.
FROM OUR SPONSORS
JOIN THE DISCUSSION
Close [ x ] More from GovExec
 
 

Thank you for subscribing to newsletters from GovExec.com.
We think these reports might interest you:

  • Forecasting Cloud's Future

    Conversations with Federal, State, and Local Technology Leaders on Cloud-Driven Digital Transformation

    Download
  • The Big Data Campaign Trail

    With everyone so focused on security following recent breaches at federal, state and local government and education institutions, there has been little emphasis on the need for better operations. This report breaks down some of the biggest operational challenges in IT management and provides insight into how agencies and leaders can successfully solve some of the biggest lingering government IT issues.

    Download
  • Communicating Innovation in Federal Government

    Federal Government spending on ‘obsolete technology’ continues to increase. Supporting the twin pillars of improved digital service delivery for citizens on the one hand, and the increasingly optimized and flexible working practices for federal employees on the other, are neither easy nor inexpensive tasks. This whitepaper explores how federal agencies can leverage the value of existing agency technology assets while offering IT leaders the ability to implement the kind of employee productivity, citizen service improvements and security demanded by federal oversight.

    Download
  • IT Transformation Trends: Flash Storage as a Strategic IT Asset

    MIT Technology Review: Flash Storage As a Strategic IT Asset For the first time in decades, IT leaders now consider all-flash storage as a strategic IT asset. IT has become a new operating model that enables self-service with high performance, density and resiliency. It also offers the self-service agility of the public cloud combined with the security, performance, and cost-effectiveness of a private cloud. Download this MIT Technology Review paper to learn more about how all-flash storage is transforming the data center.

    Download
  • Ongoing Efforts in Veterans Health Care Modernization

    This report discusses the current state of veterans health care

    Download

When you download a report, your information may be shared with the underwriters of that document.