Mike Levin: “the Army recently initiated a test program for modernization-through-spares, pursuant to which it plans to group spare…”

“the Army recently initiated a test program for modernization-through-spares, pursuant to which it plans to group spare parts and system support contracts together and award a single support contract for an entire weapons system. I have been informed that it is the Army's intent to award such a contract, for the M109 howitzer program, on a sole-source basis to the original equipment manufacturer. Spare parts contracts for the M109 howitzer program have previously been awarded on a competitive basis. This information, if true, is disturbing. Current congressional and regulatory policy encourages the break out spare parts contracts to promote competition. This policy was initiated in the mid-1980's in response to a series of spare parts scandals, in which we learned that the Pentagon had purchased commonly available commercial items for extraordinary prices--such as $435 for a hammer, $243 for a pair of pliers, $640 for a toilet seat, and $9,609 for a hexagonal wrench. These abuses resulted, in large part, from the decision to purchase the items on a sole-source basis from original equipment manufacturers.”