Summary: Testimony was presented on proposed legislation, S. 2489, which contains provisions for dealing with persistent causes of noncompetitive procurement and for increasing competition, especially in the procurement of spare parts. Most spare parts are purchased by the military departments, and the technical data which accompany the parts frequently restrict their use. As a result: (1) competition in spare parts has been steadily declining; (2) proprietary claims on data rights inhibit competition; (3) once technical data enter the system there are problems with storage, distribution, and the data needed for competitive procurement; and (4) regulatory and legal constraints tend to inhibit competition. GAO stated that S.2489 would enable agencies to deviate from requirements as long as adequate justification could be provided. It would encourage contractors to use components currently available in the supply system or with unrestricted technical data. The bill would also require a contracting agency to justify the need for prequalification, formalize the standards required to prequalify, provide opportunities for qualification, and provide test and evaluation services to small businesses. The bill also provides for: (1) improved management of technical data to promote competition; and (2) the authority for the Government to retain another contractor to review the validity of data restrictions. Finally, the bill would enable the Government to challenge and resolve proprietary data restrictions. GAO supports the provisions of the bill; however, it believes that a few provisions of the bill should be refined.
