DOD time-and-materials contracts raise red flag for GAO

Defense agencies can expect to analyze whether time-and-materials contracts have become their default contracting method when other pricing arrangements may be more appropriate, a Defense Department official has said.

The Government Accountability Office said in a June 29 report that DOD is turning to those contracts because they can be awarded quickly and the department can adjust some parts of them if issues arise. Despite their increasing use, contracting officers rarely explain why they pass on less-risky contract types. Also, GAO found little attempt to convert follow-on work to a different type of contract.

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