Military Services Falter on Single-Bid Contract Guidance

October 9, 2012

The military services have missed out on savings in recent years, the Defense Department inspector general has found, because defense agencies often did not resubmit solicitations when they received only one bid.

In a report released Oct. 5, the IG reported that the services did not follow DOD’s single-bid guidance in awarding 31 contracts out of 78 that the audit considered. The 31 awards were worth $656.1 million, more than half of the total $1 billion value of the 78. Further, the IG found the department awarded more than half of the 31 single-bid contracts without advertising the bid for 30 more days, as the guidance calls for.

The military services may also be giving up potential savings because they have not recompeted 39 contract modifications, worth $390.9 million. The military services can increase competition by re-competing single-bid contracts that exceed the three-year limit.


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