Contracting in Non-Competitive Environments: Experiences of Contracting Officers

Abstract

In this report, we review and discuss survey findings of contracting personnel operating in sole-source environments. We surveyed a small group of Air Force contracting personnel at the F-22 program office to understand their views on contracting. Our findings suggest Air Force contracting personnel know that sellers in non-competitive 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 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 general training on business acumen. We also compare these responses to a recent survey of contracting personnel at the Air Force Space and Missile Systems Center.