Audit of Department of Defense Lowest Price Technically Acceptable Contract Awards

Rec. A.1: The DoD OIG recommended that the Principal Director, Defense Pricing, Contracting, and Acquisition Policy, establish and implement additional training on awarding lowest price technically acceptable contracts or clarify best practices for lowest price technically acceptable awards to ensure contracting personnel understand and follow the Defense Federal Acquisition Regulation Supplement requirements.

Rec. A.3.a: The DoD OIG recommended that the Assistant Secretary of the Navy (Research, Development, and Acquisition) require contracting personnel to review the file for the three contracts that did not include a lowest price technically acceptable justification and if a lowest price technically acceptable source selection was appropriate, add a justification to the file, as required by the Defense Federal Acquisition Regulation Supplement. If a lowest price technically acceptable source selection was not appropriate, require contracting personnel to determine the appropriate action to continue with the existing contract, or terminate and recompete the contract.

Rec. A.4.a: The DoD OIG recommended that the Deputy Assistant Secretary of the Air Force (Contracting) require contracting personnel to review the file for the three contracts that did not include a lowest price technically acceptable justification and if a lowest price technically acceptable source selection was appropriate, add a justification to the file, as required by the Defense Federal Acquisition Regulation Supplement. If a lowest price technically acceptable source selection was not appropriate, require contracting personnel to determine the appropriate action to continue with the existing contract, or terminate and recompete the contract.

Rec. A.5: The DoD OIG recommended that the Director, Defense Health Agency Contracting Activity require contracting personnel to review the file for the contract that did not include a lowest price technically acceptable justification and if a lowest price technically acceptable source selection was appropriate, add a justification to the file, as required by the Defense Federal Acquisition Regulation Supplement. If a lowest price technically acceptable source selection was not appropriate, require contracting personnel to determine the appropriate action to continue with the existing contract, or terminate and recompete the contract.

Rec. B.1.b: The DoD OIG recommended that the Principal Director, Defense Pricing, Contracting, and Acquisition Policy direct the Services and other Defense agencies to require contracting personnel to review and correct contract actions that were incorrectly labeled as lowest price technically acceptable awards in the Federal Procurement Data System.