Defense Contracts: DOD's Requests for Information from Contractors to Assess Prices
Abstract
DOD usually relies on competition to ensure it pays a reasonable price for supplies or services. For noncompetitive contracts, DOD relies on other methods for determining price reasonableness, such as information from previous contracts or from the contractor. For commercial items, there are limits on the types of data that may be requested from contractors. Section 831 of the National Defense Authorization Act for Fiscal Year 2013 required DOD to issue guidance and provide training related to the information contracting officers may request to determine the reasonableness of contract prices. The act also included a provision for GAO to review contracts awarded between January 2013 and January 2015 and report on the extent DOD needed cost data from the contractors to assess the reasonableness of prices. This report addresses (1) DOD s actions to develop guidance and training on determining price reasonableness, and (2) circumstances under which DOD requested contractor cost or pricing information for determining price reasonableness. GAO reviewed regulations and policies and interviewed DOD officials. GAO also reviewed a random, nongeneralizable sample of 32 noncompetitive commercial contracts from the four DOD components that spent the most on contracts during the 2-year period specified in the mandate. GAO is not making recommendations. In written comments, DOD stated the report would assist the department s implementation of Section 831.
Document Details
- Document Type
- Technical Report
- Publication Date
- Aug 01, 2015
- Accession Number
- ADA623550
Entities
People
- Alyssa Weir
- Andrea Evans
- Aryn Ehlow
- Carol Mebane
- Jean Mcsween
- Julia Kennon
- Laura Greifner
- Penny Berrier
- Roxanna Sun
- William T. Woods
Organizations
- United States Government Accountability Office