Summary: In response to a congressional request, GAO reviewed the Army's procedures in awarding and administrating contracts for the design, development, and production of 600 and 3,000 gallon-per-hour (GPH) reverse osmosis water purification units (ROWPU) to convert seawater and contaminated fresh water into potable water.
GAO found that, the Army restricted competition to two contractors because: (1) it urgently needed to field the units; (2) an amendment to the Competition in Contracting Act (CICA) permitted agencies to use noncompetitive procedures when the property or services needed were available from a limited number of responsible sources; and (3) the development contractors' drawings and data were not adequate for use in soliciting open competition. GAO believes that the Army's justification for limiting competition was inadequate because: (1) there was no analysis that demonstrated that the use of restrictive procedures would ensure that the contractors could provide ROWPU by the desired date, or that CICA procedures would not; (2) first-article testing would avoid or limit deficiencies in the drawings and manufacturing process; and (3) its plans to procure 60 percent of its requirement under the first contract would limit future competition for the remaining units.
