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GAO: Agencies Need Guidance on Bridge Contract Use

ContractSigningThe Government Accountability Office has recommended that the Office of Federal Procurement Policy define bridge contracts in the Federal Acquisition Regulation or develop guidance for agencies to manage their use of such contracts.

GAO said Wednesday some agencies award a bridge contract to an incumbent vendor in order to avoid service gaps when they are not yet ready to issue an extension.

According to GAO, the method presents an overpayment risk for agencies due to the lack of a competitive bidding process.

The agency examined 29 of those contracts in-depth and found that six spanned longer than three years.

GAO said it believes that OFPP should provide bridge contract definition and guidance to help agencies monitor potential risks as well as increase competition among vendors.

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