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B-102963 1 (1974-03-18)

handle is hein.gao/gaobaaemg0001 and id is 1 raw text is: RELEASED RESTRCTED - Not to be released outside the General f1 S A\ Accouning Office except on the basis of specific approval aq2q .. the,01oPf2ce o Z't F i 9,16qY %%'f~ of which WASHINGTON. D.C. 26548 B-102963o MAR 1 8 1974 The Honorable Wendell Wyatt97 House of Representatives Dear Mr. Wyatt: On February 12, 1974, you asked that we consider a complaint to you from Mr. Robert H. Nyssen, Presidents, B. P. John, and provide you with our findings and views. Specifically, Mr. Hyssen complained that the __ ;ration Act r@,s ls eendlsss amUnt of detailed bookkeeping,,: filig,' and maitaning ;f eprts-, and he provided exa- ples. He also stated tha t'he Renegotiation Board (1) identifies the - refunds it obtains only in gross figures and does not disclose the net amounts recovered, (2) does not submit figures on what it costs industry to comply with its retultions and Mr. Nyssen feels these costs are astronomical, and (3) does not make apparent the burden it places on other Government agencies. Mr. Nyssen requested that you consider (1) having the Congress revise and update the law so that it is consistent with the original meaning and intent, (2) asking GAO to review to determine whether renegotiation is cost effective, and (3) permitting the act to expire June 30, 1974. On May 9, 1973, we completed a review of the operations and activities of the Renegotiation Board and a copy of our report to the Congress is enclosed. In that report we made a number of recm- mendations to the Congress and the Renegotiation Board to improve the operations and effectiveness of the Board. In addition, the Government Activities Subc ttee of the House Comittee on Govern- ment Operations reviewed the operations of the Renegotiation Board and proposed many changes in the Renegotiation Act and the Board's operations in the Comittee's report dated Decaber 16, 1971. Fur- ther, the Commission on Government Procurement made four recomenda- tions with respect to renegotiation. These are discussed on pages 47 and 48 of the GAO report mentioned above. Our comments on Mr. lyssen's specific complaints follow. We talked with Renegotiation Board officials about the type of situation Mr. Nyssen described in his =les of the minute detail required by the Renegotiation Act regulations. These officials told us that a difference in color of chairs would Pot ordinarily make a nonrenegotiable item renegotiable (see Renegotiation Regulations 9E Yf___

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