The Defense Department had trouble determining reasonable prices for noncompetitive contracts because some contractors wouldn’t share pricing information, according to an Aug. 12 Government Accountability Office (GAO) report.
Normally, DoD relies on competition to ensure that it pays a reasonable price for its goods and services. But for noncompetitive contracts, DoD relies on other methods including information from previous contracts or from the contractors themselves, GAO says in the report.
The DoD requested pricing information from contractors for 12 of 32 noncompetitive agreements in GAO’s sample. For the remaning 20 contracts, DoD felt it already had enough information to make sure it was getting a reasonable price.