Competitiveness in the Services Sector: Understanding the Contracting Data

Abstract : The study investigates whether competed service sector contracts with a single offer or sole source awards indicate a lack of qualified firms or significant barriers to entry. The study concludes that: (1) the prevalence of service sector contracts receiving only a single offer is about half as large as the data appear to suggest; and (2) the use of short-term contracts and modifications to fill the gap in services between the end of one contract and the beginning of the next is a significant source of sole source contracts.