Improvements Needed on DoD Procurements from Robertson Fuel Systems (REDACTED)
Abstract
Our objective was to determine whether DoD effectively procured items from Robertson Fuel Systems (Robertson). Specifically, we reviewed the commercial item determination and impact a sole-source, commercial procurement strategy had on the fair and reasonable price determination. DoD did not effectively procure fuel systems and parts from Robertson on the nine nonstatistically selected, sole-source contracts reviewed. Specifically, contracting officers could not support the commercial item or fair and reasonable price determinations because contracting officers did not: have clear guidance when they made commercial item determinations and identified a minor modification, specifically when no evidence of commercial sales existed for items purchased on six contracts; obtain certified cost or pricing data or a waiver for items determined noncommercial on three contracts; request, or Robertson refused to provide, other-than-certified cost or pricing data for eight contracts; and perform adequate price analysis on eight contracts. As a result, contracting officers applied the commercial item definition to items procured on Robertson sole-source contracts without evidence of commercial sales and without evidence that the item was of a type customarily used by the general public. This inhibited the contracting officers ability to develop an effective bargaining position and gave the contractor significant control in contract negotiations. In addition, DoD did not obtain the necessary data to determine if the $77 million it spent on these contracts was fair and reasonable. The Director, Defense Pricing made efforts to improve this area. For one of the nine contracts we reviewed, the Director s involvement resulted in the Army using a Navy Price Fighters should cost analysis in their negotiations with R obertson. As a result of these negotiations, Robertson accepted an amount less than its original proposal.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 25, 2015
- Accession Number
- ADA621503
Entities
People
- Jacqueline L. Wicecarver
Organizations
- Office of the Inspector General, U.S. Department of Defense