The Army Was Justified in Negotiating a Supplemental Agreement for Part of a Barracks Complex at Fort Irwin, California

In response to a congressional request, GAO reviewed the contracting arrangements for construction of the final 2 buildings of an 11-building complex at the National Center for Combat Training, Fort Irwin, California, and the Army's justification in negotiating a supplemental agreement to an existing contract rather than awarding a new contract on the basis of competitive bidding.

GAO found that, after the Army's decision to negotiate a supplemental agreement, two potential bidders filed a formal bid protest with it, alleging that the contractors had been deprived of the right to compete and that the supplemental agreement would result in a higher cost to the government. GAO denied the protest on the belief that the Army was justified in negotiating the agreement because of the potential for construction delays and increased costs resulting from two contractors working simultaneously in the same area. Although GAO could not determine if the competitive procurement would have resulted in higher contract costs, GAO found that the Army could have written limits into the first contract that would have allowed the remaining buildings to be procured competitively. The Army has taken action to issue guidance to its offices to strengthen the planning process for multiphased contracts.