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GAO: DoD Faces Commercial Product Cost Assessment Challenges

BudgetThe Defense Department uses previous contracts or contractor-provided cost data to examine the reasonableness of commercial offerings in noncompetitive acquisition programs, according to a Government Accountability Office report.

GAO said Thursday DoD contracting personnel asked pricing information from vendors to determine whether the prices the department paid on 12 of 32 sample commercial contracts were reasonable and fair.

The report indicates that data currency and vendor reluctance to share information affect DoD’s efforts to assess product costs.

The department plans to amend the Defense Federal Acquisition Regulation Supplement and issue guidance for contracting officials on how to request for commercial product cost information, GAO said.

GAO added that DoD is working to establish training programs and form a team of cost and pricing specialists to help contracting personnel at the department.

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