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115546 1 (1981-06-16)

handle is hein.gao/gaobadytl0001 and id is 1 raw text is: 

                                              /  k


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

                                        FOR RELEASE ON DELIVERY
                                        Expected at 10:00 a.m.
                                        June 16, 1981


                                                             LMi15546
                         Statement of

                  DONALD J. HORAN, DIRECTOR
       PROCUREMENT, LOGISTICS, AND READINESS DIVISION

                         BEFORE THE

  SUBCOMMITTEE ON PROCUREMENT AND MILITARY NUCLEAR SYSTEMS
             HOUSE COMMITTEE ON ARMED SERVICES

                             ON

              ROFIT LIMITATION LEGISLATION


Mr. Chairman and Members of the Committee:

     At your request, we are here today to present our views on

profit limitation legislation. As the Committee is aware, we

testified in June 1980 before the Subcommittee on Investigations

in support of legislation to waive the application of the

Vinson-Trammell Act until October 1, 1981. One objective of

that legislation was to allow appropriate Committees of the

Congress an opportunity to carefully study the need for profit

limitation, consider alternatives, and decide what the Federal

policy should be in this complex and important area. We are

pleased to be able to assist in these deliberations.

     Our basic position on profit limitation continues to be

that, as a minimum, a profit limitation statute should be in

place that would become operative during a period of national

emergency when contract activities increase significantly.

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