Navy Engineering Centers: Proposal to Change From Industrial Funding to Another Funding Method
Abstract
The DOD proposal to convert the two Centers is part of a larger initiative to convert 14 Navy research and engineering activities from industrial funding to an alternative funding method. DOD did not require that the Navy convert to a specific alternative funding method but permitted it to select from various alternatives. The alternatives included using (1)appropriated funds to finance all costs, (2) a mixed funding arrangement where overhead would be funded by direct appropriations and direct labor and material would be reimbursed by customers, (3) revolving funds, similar to industrial funds, but with fewer requirements and restrictions, and (4) a totally reimbursable system where all costs (overhead, direct labor, and material) would be reimbursed by the customers. The fourth alternative is also similar to an industrial fund system but with less detailed cost accounting, budgeting, and other requirements of industrial fund activities. The Navy said that if it is required to convert these two Centers, it will use the mixed funding arrangement.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 01, 1988
- Accession Number
- AD1102019
Entities
Organizations
- United States Government Accountability Office