GAO-23-106035 DOD CONSTRUCTION CONTRACTS: Contractor Proximity
A variety of construction projects and maintenance and repair projects help the Department of Defense (DOD) support normal functions and maintain military readiness by ensuring that DOD facilities are updated and that runways, roads, and utility structures are maintained. Depending on the circumstances, federal statutes and regulations require DOD to consider various factors when awarding these contracts, such as promoting competition and small businesses. In general, DOD is not required to consider the business location of construction contractors or subcontractors when making contract awards. Most DOD contracting officers and project managers we spoke with stated that limiting military construction awards to local contractors (e.g., within 60 miles of the work site) could result in less competition, increased costs, the inability to complete certain projects, or challenges for small business programs.