Summary: Pursuant to a congressional request, GAO examined 87 contracts worth a total of about $1.4 billion at the Departments of Education, Energy, Health and Human Services, and Housing and Urban Development, focusing on how well the agencies administered large contracts.
GAO found that: (1) 16 of the contracts had planning or specifications deficiencies, which delayed delivery, increased costs, or resulted in incomplete deliveries; (2) the agencies' use of cost-plus-fixed-fee contracts for 33 repetitive requirements was questionable, since that type of contract provided minimal performance and cost control incentives; (3) the agencies awarded nine contracts before they were ready to have the contractors commence performance; (4) eight contracts had defective work statements, specifications, or clauses; (5) contract administration deficiencies in 50 contracts increased contract costs, delayed contract completion, or circumvented internal control procedures in the contracting process; and (6) program offices hindered contractor performance on 27 contracts and exceeded their authority on 12 contracts by directing work beyond the original requirements, while contracting officers extended 10 service contracts and modified 21 contracts after their completion dates, resulting in improper sole-source procurements.
