Using Data Analytics to Detect Bridge Contracts

Abstract

Bridge contracts—temporary contract actions that enable continued contractor performance until a replacement contract can be awarded—are not controlled and are suspected to be overused. While facilitating continued mission achievement, bridge contracts reduce competition, result in higher prices paid, and increase transaction costs. Yet, few agencies have a means to identify bridge contracts, meaning the extent of their use is unknown. Thus, most agencies do not identify, analyze, and monitor the risk associated with achieving statutory competition objectives. This research develops a data analytic methodology to identify bridge contracts, which can quantify the magnitude of the problem and serve as a starting point to enact policy to mitigate usage.