About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

PSAD-77-80 1 (1977-03-09)

handle is hein.gao/gaobaacay0001 and id is 1 raw text is: DOCONENT RESUNZ S. e€ € 01128 - LA0891 '$1C IncreasEd Costs to Government under the Department of Defense Program to Redu~e Audits. PSAD-77-80; B-183327. March g, 1977. Released March 14, 1977. 13 pp. Report to Sen. William Proxmire, Chairman, Joint Committee on Defense Production; by Robert F. Keller, Acting Compttol'Ler General. Issue Area: Federal Procurement of Goods and Services ('900). Contact: Procurement and Systemr Acquisition Die. Budget Function: National Defense: Department of Defense - Procurement & Contracts (058). organization Concerned: Department of Defense; Defense Contract Audit Agency. Congressional Relevance: Joint C-.,maittee on Defense Production. The Department of Defense s Contractor Veighted Average Share in Cost Risk program, designed to eliminate the evaluations of the reasonableness of contractors' indirect expenses or overhead (such as travel and rent), does not quarantee that costs aro controlled effectively. Findings/Conclusions: The program is based on the assumption that gooO management iy industry, properly motivated by competition and fixed-price contracts, more effectively ccntrols costs than detailed revie, and controls by Government. These assumptions do not seem valid. At the locations reviewed, the agency rndits of indirect expenses have generally been adequate except for limitations on questioning the reasonableness of costs imposed by the progra. Reconmendations: The Secretary of Defense should remove the Contractor Weigkted Average Share designation from the Armed Services Procurement Regulation for expenses of corporate aircraft, cafeterias, and leasing buildings and equipment and should reconsider the program altogether, since savings have not been proven and eliminating it would probably not materially increase Government involvement in contractors' affairs or increase, overall, the Defense Contract Audit Agency's audit work. (LAthor/SC)

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most