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LCD-77-417 1 (1977-09-15)

handle is hein.gao/gaobaavxu0001 and id is 1 raw text is: DCCUMENT RES 03400 - [A25937363 Cf-a-l-' Challenges to Reducing Government Equipment in Contr'actors, Plants. LCD-77-417; B-14 0389. September 15, 1977. 34 pp. + 8 appendices (s pp,.). Report to Rep. )ack Brooks, Chairman, House Committee on Government Operations: Legislation and National Security Subcommittee; by Elmer B. Sta,,ts, Comptroller General. Issue Area: Facilities and Material Hanagement (700); Military Preparedness Plans (800). Contact: Logistics and Communications Div. Budget Function: National Defense: Department of Defens-? - Hilitary (except procurement & contracts) (051). Organization Concerned: Department of Defense. Congressional Relevance: House Committee on Government Operations: Legislation and National Security Subcommittee. 1°*thority: Federal Property and Administrative Services Act of 1949, as aaenMed (40 U.S.C. 484(e)(3) (G)). A.S.P.R. B-311. In March 1970, he Department of Defense (DOD) announced a 5-year program to generally phase out the use of in-place Government-owned facili'ies in the possession of contractors. Although progress ha., been made, more could be done to phase out this equipment through determined and sustained efforts by LuD and the military services. Findings/Conclusions: Uncertainties about the authority to dispose of Government equipment by negotiated sale to contractors and past lack of incentives for contractors to invest in capital equipment have detracted from the phaseout program's success. As of June 30, 1976, contractors at Government-owned and contractor-operated plants had 12% less Government-owned industrial and other plant equipment than the $4.5 billion in their possession 5 years earlier. Recommendations: The Secretary of Defense should: obtain visibility of other plant equipment furnished to contractors by maintaining central records on such equipment; put more emphasis on identifying both industrial and other plant equipment essential to supporting either current procurements or wartime production and emphasize removing unneeded equipment; revise DOD procedures to guarantee tha: all plant equipment needed durinS wartime is identified and i ,cluded in plant equipment packages set up to meet wartime requirements; and reassess DOD's position on authorizing the use of Government-cwned equipment for commercial work and require that the contractor maintain records for -Ise of Government-owned equipment on ccmmercial work. The Congress should clarify the authority of the General Services Administration to negotiate sales of Govirnment-owned equipment to the holding contractors. (Author/SC)

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