Navy Awards Half Billion Dollars of Contracts without Competitive Bidding
In a report by the Defense Department’s inspector general issued May 11, an audit of 133 of 1,106 task orders from a prominent Navy program showed that 39 contracts, valued at $469.3 million, were awarded without adequate competition. The program audited was the SeaPort-e. This is an online resource that allows the Navy to access and issue task orders so personnel can execute engineering projects. SeaPort-e awards indefinite delivery-indefinite quantity (IDIQ) contracts with a cost ceiling of $47.8 billion. Based on the sample, the inspector general estimates that 29.3% of all contracts were given out with little or no competition. In addition, the audit found that 109 of the 133 investigated task orders did not sufficiently specify how the Navy would evaluate a contractor’s performance and that Navy officials did not conduct adequate market research. Thus SeaPort-e customers may not have always received the best value. The findings from this audit have led the inspector general to estimate that 89% of SeaPort-e contracts do not meet quality assurance standards.
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