Civil Agencies Can Do a Better Job of Negotiating Noncompetitive Contracts Priced Over $100,000

Gao ID: PSAD-79-93 August 21, 1979

A review was made of the practices of 12 executive civil agencies in pricing negotiated noncompetitive contracts over $100,000 when contractors' cost or pricing data were required. The price negotiations reviewed included 61 contracts valued at $33 million that were awarded in fiscal year 1977.

For the 61 negotiations, it was found that: no cost or pricing data were obtained for 15 actions; incomplete cost or pricing data were accepted by the Government for 41 actions; cost or pricing data were obtained but there was no analysis of the data in 14 actions; there was incomplete cost analysis for 11 actions; cost analysis results were not always effectively used in negotiating contract prices; and there was inadequate protection against using defective data. Pricing deficiencies were attributed to: lack of adequate guidance for determining what complete cost or pricing data should include; confusion as to who is responsible for reviewing cost or pricing data for completeness, and what Government activity is responsible for analyzing data for awards to small companies owned by socially or economically disadvantaged persons; contracting personnel not always being well trained in regulations and procedures for pricing and negotiating contracts requiring cost or pricing data; and management controls either not existing or needing to be strengthened.


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