The Post-Award Costs of Contracting Out: The U.S. Navy's Implementation of OMB Circular A-76

Abstract

The Commercial Activities program as delineated by OMB Circular A-76 has been controversial since its inception. One area of continuing controversy is the accuracy of pre-award cost estimates for estimating post-award program savings in operations that are contracted out. This thesis examines the post- award result of contracting out and identifies those costs that are either underestimated or not accounted for in the cost comparison process. Research was conducted on 14 West Coast activities that contracted out a food service operation, storage and warehousing operation, or both under a multi-function contract. The issues identified by the study include: the need for post-award guidance and policy, the need for increased claimant guidance at the field level, the absence of an adequate cost accounting system and post-award program controls, the need for increased contract administration staffing, a problem with budget flexibility at activities that have contracted out and continuing problems with performance definition. Keywords: Theses, Privatization. (kr)

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1988
Accession Number
ADA198529

Entities

People

  • Charles P. Cole Jr.
  • Nancy S. Cole

Organizations

  • Naval Postgraduate School

Tags

DTIC Thesaurus Topics

  • Accuracy
  • Business Administration
  • Congress
  • Contract Administration
  • Contracts
  • Control Systems
  • Cost Estimates
  • Data Analysis
  • Employment
  • Government Employees
  • Law
  • Management Personnel
  • National Security
  • Organizational Structure
  • Personnel Management
  • Procurement
  • United States

Readers

  • Government Contracting/Procurement.
  • Maritime and Naval Warfare Studies
  • Systems Analysis and Design