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NSIAD-93-99R 1 (1992-12-23)

handle is hein.gao/gaobackev0001 and id is 1 raw text is: 


GAO          United States
             General Accounting Office
             Washington, D.C. 20548

             National Security and
             International Affairs Division



             B-224782                                     II~111111I


             December 23, 1992                               148196

             The Honorable Sam Nunn
             Chairman, Committee on
               Armed Services
            United States Senate

            The Honorable John Glenn
            Chairman, Committee on
              Governmental Affairs
            United States Senate

            The Honorable Les Aspin
            Chairman, Committee on
              Armed Services
            House of Representatives

            The Honorable John Conyers, Jr.
            Chairman, Committee on
              Government Operations
            House of Representatives

            Section 2324 of title 10 U.S.C. requires us to evaluate and
            report on substantive changes to the Department of Defense's
            (DOD) regulations concerning allowable costs on covered
            defense contracts. The purpose of this letter is to report on
            recent regulatory changes.

            The regulatory changes are published in the Federal Register
            as revisions to the Federal Acquisition Regulation (FAR) and
            the Department of Defense Federal Acquisition Regulation
            Supplement (DFARS). On September 24, 1992, a FAR cost
            principle revision on independent research and development/bid
            and proposal (IR&D/B&P) costs, making these costs allowable as
            indirect costs on contracts to the extent that the costs are






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