An Analytical Evaluation of Procedures for Closing Cost-Type Contracts.
Abstract
Physically completed open contracts are an administrative and financial burden to the government. The Air Force had a procedure for the early closeout of cost-type contracts overage due to overhead negotiation. This procedure was superseded by an early closeout procedure subsequently published in the Defense Acquisition Regulation (DAR). The primary objectives of this thesis are to (1) compare current data to previous data which indicated that overhead negotiation was the primary reason for overage contracts to determine if this condition still exists and (2) determine if the DAR early closeout procedure is accomplishing its goal. This study concludes that (1) negotiations of overhead continue to be the primary reason for contracts becoming overage; and (2) the DAR procedure hinder the early closeout of contracts by certain contractors who were previously agreeable to closing contracts using the Air Force procedure. The latter conclusion attributed to the increased cost risk to the contractor. It recommended that a more flexible procedure be adopted for the early closeout of physically completed cost-type contracts. This flexibility will allow procedural variations to be used as required by each particular situation.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1979
- Accession Number
- ADA072697
Entities
People
- Joseph E. Moad
- Michael B. Bristow
Organizations
- Air Force Institute of Technology