Spare Parts Contracts: Collecting Additional Information Could Help DoD Address Delays in Obtaining Cost or Pricing Data
Abstract
DOD spends billions of dollars each year on spare parts for planes, ships, and other equipment. While DLA buys the bulk of the spare parts, the military departments also acquire them to support specific weapon systems. DOD seeks to negotiate a reasonable price for these spare parts to award contracts in a timely manner. DOD uses data other than certified cost or pricing data if it determines certified cost or pricing data are not required to determine prices are reasonable. The National Defense Authorization Act for Fiscal Year 2020 included a provision for GAO to review DODs efforts to obtain contractor cost or pricing data. This report 1) describes how often DLA obtained cost or pricing data on sole-source contracts for spare parts; and 2) assesses the extent to which DOD tracks delays in obtaining these data and the reasons for those delays. GAO reviewed federal and DOD acquisition regulations and analyzed data for 136 DLA spare parts contracts awarded between fiscal years 2015 to 2019. For fiscal year 2019, GAO also selected 10 sole-source contracts awarded by DLA, Air Force, and the Navy, based on dollar value and other factors, to identify challenges in obtaining cost or pricing data. GAO also interviewed DOD and contractor officials. GAO recommends that DOD identify options for collecting information on the extent and nature of delays that contracting officers experience in obtaining cost or pricing data on sole-source contracts. DOD concurred with the recommendation.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 01, 2021
- Accession Number
- AD1174783
Entities
People
- Anne L. Taylor
- Breanne Cave
- James Kim
- John Bumgarner
- Julia Kennon
- Laura Abendroth
- Leigh A Haydon
- Penny Berrier
- Rose Brister
- Roxanna Sun
- Timothy J. Dinapoli
- Tyann Lee
Organizations
- United States Government Accountability Office