Noncompetitive Contracting: Lessons from Contracting Personnel

Abstract

In this paper, we survey a small group of Air Force contracting personnel to understand their views on contracting in sole-source environments. Our findings suggest Air Force contracting personnel in this setting know that sellers in noncompetitive relationships have more leverage and power than the buyer. Indeed, 90% of respondents feel they operate at a negotiating disadvantage in sole-source contracts. Arming them with certified cost and pricing data does not improve leverage, according to a majority of them. Rather, they identify two constraints in their qualitative responses. First, the sole-source environment itself contributes to the problem. Second, many respondents feel they operate at an informational disadvantage compared to their private counterparts. This suggests specific training on their contracts would be more valuable than any general training on business acumen.