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094461 1 (1970-02-25)

handle is hein.gao/gaobadxln0001 and id is 1 raw text is: 





              UNITED STATES GENERAL ACCOUNTING OFFICE
                     WASHINGTON, D. C. 20548


                                                FOR RELEASE ON DELIVERY
                                                Expected at 10:00 a.m. EST
                                                February 25, 1970

                           STATEMENT OF
     ELMER B. STAATS, COMPTROLLER GENERAL OF THE UNITED STATES
                            BEFORE THE
       SPECIAL SUBCOMMITTEE ON ARMED SERVICES INVESTIGATING         0
     COMMITTEE ON ARMED SERVICES, HOUSE OF REPRESENTATIVES


Mr. Chairman and Members of the Subcommittee:

     At your request, we appear before you today to present the informa-

tion that the General Accounting Office has developed in the course of

its study of allowances for independent research and development (IR&D)

costs in negotiated contracts. As you know, we issued a report on the

results of this study to the Congress on February 16, 1970.

     The extent to which Government agencies should participate in con-

tractors' IR&D costs has been a matter of serious concern within the

executive branch for many years but no satisfactory solution has been

reached to the many problems involved. Consequently, I believe that the

Committee hearings scheduled both here and in the Senate should prove

very helpful. Our report includes three recommendations for considera-

tion by the Congress and also presents several issues and alternatives

concerning basic governmental policy on which we do not make a specific

recommendation.

What is IR&D?

     The term IR&D refers to that part of a contractor's total research

and development (R&D) program which is not under a direct contract or

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