Navy Contracting

Award of a Contract at Whidbey Island Naval Air Station Gao ID: NSIAD-88-10BR October 7, 1987

Pursuant to a congressional request, GAO reviewed a Navy contract award for base operating support, specifically the: (1) calculation of specific cost comparison items, such as contract administration cost; (2) amount of indefinite quantity work and related labor hours; (3) qualifications of the contractor as a small business; and (4) allegations a labor union raised concerning a conflict of interest.

GAO found that the Navy properly followed either its own or Office of Management and Budget guidance in: (1) comparing in-house and contractor costs; and (2) determining the amount of indefinite quantity work. GAO also found that the: (1) awardee qualified as a small business, since it was not a subsidiary of or in partnership with one of the other firms bidding on the contract; and (2) Navy reasonably determined that there was no violation of conflict-of-interest regulations.



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