Defender of the Capitalist System: Department of Defense Worst in Competitive Contracts
Dina Rasor TruthOut January 26, 2012
The Department of Defense (DoD) came in the lowest in the government on competing their procurement contracts. According to the Center for Public Integrity:
While the Pentagon says its level of competition has remained steady over the past 10 years, data available through the Federal Procurement Data System-Next Generation, which provides competition data on federal agencies, show that the dollars flowing into single-bid contracts have almost tripled since the terrorist attacks of 9/11. Nor has that trend been reversed since the 2009 Obama administration memo on competition;Defense Department dollars flowing into noncompetitive procurements continue to grow.
Over the past 10 years, the Pentagon has competed only about 60 percent of its total contract dollars, which stands in stark contrast to other large federal agencies. The State Department, for example, competed 75 percent of its contract dollars in fiscal year 2010, while the Energy Department competed almost 94 percent of its contract dollars. The U.S. Agency for International Development, which faced heavy criticism in the early days of the Afghanistan conflict for handing out sole-source contracts, competed almost 80 percent of its total contract dollars in fiscal year 2010. Even the Department of Homeland Security, which was blasted for a series of disastrous contracts in the wake of Hurricane Katrina, outstripped the Pentagon on competed contracts: it competed almost 77 percent of its contract dollars in 2010.
There are several reasons that these numbers may be low. If the DoD competes an original contract, the winning contractor usually gets all the follow-on contracts, often with no new competition, and those service contracts or weapons procurement are then seen as being a competitive contract for years after the initial competition.
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