History and Characteristics of Single Contracts for Multiple Services Vary

Most of the multiple service contracts were initiated when the installation performed a commercial activities study and all but one were established in the 1980s or earlier. As shown in table 1, the estimated costs of the contracts range from $5.4 million to $100 million annually and most were awarded on a fixed-price basis. Single contracts for multiple support services were critical to meeting the overall requirements for base operations support at all 10 installations we reviewed; however, none used a single contract to meet all of its requirements. At the other three locations, officials told us that the decision to use a single contract for multiple services was made at the time that the installation or its current mission was established. Multiple Service Contracts Are One Tool for Accomplishing Base Operations Support

At the 10 installations we reviewed, base operations support requirements were being met through a variety of means, including in-house personnel, as well as single contracts for multiple services, single contracts for specific services, and regional contracts. Lessons Learned From Multiple Service Contracts

Contracting officials at the 10 installations we reviewed have learned a number of lessons from their experience with single contracts for multiple base operations support services. Contracting officials we spoke with during this review told us that coordination is much easier when there is a single contractor. Small Businesses Participate, but Concerns Remain

At 3 of the 10 installations we reviewed, small businesses were participating as prime contractors under single contracts for multiple base operations support activities. In each case, the small business was awarded the prime contract under programs designed to assist small and disadvantaged businesses. Concerns Remain About Overall Impact on Small Business Participation

Small Business Administration and DOD officials are concerned that consolidating multiple base operation services into single contracts may limit the participation of small businesses as prime contractors. Savings Are Not Documented, but Efficiency Gains Are Recognized

Although contracting officials reported efficiency gains, cost savings from using single contracts for multiple base operations support functions are not documented. The other three installations contracted out from the time of inception of the base or its mission and did not necessitate an A-76 study. Although some installations received extensive support through a single contract, none received all of their required services through a single contract. The history and characteristics of the contracts varied between the 10 installations and the services obtained through the contracts often reflected differences in mission and geographical location. Comparing and contrasting services between contracts and installations to precisely say what services were included or excluded from individual contracts in comparison with others is difficult because there are no generally accepted definitions for base operations support services.
Why GAO Did This Study

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) use of single contracts for multiple base operations support functions, focusing on: (1) the history and characteristics of selected single contracts for multiple base operations support services; (2) the kinds of services procured under these contracts; (3) lessons DOD has learned from the use of these contracts; (4) whether small businesses participate in these contracts; and (5) whether cost and efficiency gains have been documented.

What GAO Found

GAO noted that: (1) the history and characteristics of selected single contracts for multiple base operations support services varied at the 10 installations GAO reviewed; (2) the decisions to use a single contract for multiple services occurred in two ways; (a) at seven installations, the decision occurred at the time of a commercial activity, or OMB Circular A-76 study; and (b) in the other three cases, the decision was made at the time the installation or its current mission was established; (3) most of the contracts were awarded for 5 years and ranged from about $5.4 million to $100 million annually; (4) although some installations received extensive base operations support services through a single contract, none received all of its required services through a single contract; (5) at all 10 installations, base operations support requirements were met through some combination of single contracts for multiple services; (6) the kinds of services procured under the multiple service contracts also varied and were influenced by a number of factors; (7) comparing and contrasting services between contracts and installations to precisely say what services were included or excluded from individual contracts in comparison with others is difficult because there are no generally accepted definitions for base operations support services; (8) as a result, contracting officials often used the same or similar terms differently; (9) DOD officials at the 10 installations GAO reviewed have learned a number of lessons from their experiences with single contracts for multiple base operation support services; (10) although many contracting officials GAO spoke with stated that coordination is much easier when there is a single contract, they acknowledged problems can still arise; (11) at 3 of the 10 installations GAO reviewed, small businesses were participating in single contracts for multiple base operations support services; (12) in all three cases, the small business was the prime contractor and the contracts were awarded under various small business programs; (13) the Small Business Administration and DOD officials are aware that consolidating multiple base operation services into single contracts may reduce the participation of small business as prime contractors; (14) officials from both agencies have issued guidance for considering small businesses in contract consolidation decisions; and (15) although contracting officials reported efficiency gains, cost savings from using single contracts for multiple base operations support services are not documented.