Oil Spill Clean-Up Contracts

Pursuant to a congressional request, GAO provided information on: (1) the procedures that the Coast Guard uses to acquire oil spill clean-up services; (2) the requirements contractors are to follow in purchasing supplies; and (3) the extent to which contractors use exclusive-use subcontracts. GAO found that: (1) the Coast Guard uses basic ordering agreements (BOA) to expedite the processing of contracts for containing and cleaning up spills; (2) BOA specifies the terms and conditions that will apply to future orders issued against it; (3) the Coast Guard is responsible for determining that the use of a particular contractor is most advantageous to the government; (4) many of the Coast Guard's contractors award subcontracts for various assistance or materials to aid them in cleanups; (5) the Coast Guard considers oil spill clean-up products to be commercially stocked items and does not question contractors about subcontracts; (6) the Coast Guard does not know how many of its BOA contractors have exclusive-use subcontracts for purchasing clean-up supplies; and (7) two major Coast Guard contractors stated that they have exclusive-use subcontracts but that their subcontracts could be cancelled by either party at any time.