September 20, 2016
Pentagon’s Contract-Spending Problem
Source: Nextgov, Frank Konkel, August 24, 2016
The Defense Department continues to spend more than half its contracting dollars without legitimate competition between vendors, according to its Office of Procurement and Acquisition Policy.
A competition scorecard for the third quarter of fiscal 2016 released this week by the office shows that of $205 billion awarded in contract spending across DOD, only $101 billion was competed.
That compete percentage, about 49.7 percent of total contract spending, falls short of DOD’s stated 57 percent goal for fiscal 2016, and indicates a continuation of almost a decade of declining competition across the military space for everything including IT systems, professional services and weapons systems.
DOD’s first– and second- quarter competition scorecards showed DOD competed 43.3 percent and 46.5 percent of its awarded contracting dollars, respectively, worse than the first- and second-quarter scorecards in 2015.
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