Contractor Overhead Costs: Money Saving Reviews are Not Being Done as Directed

Abstract

Since being instructed in 1992 to conduct more should-cost reviews, DOD has done only four such reviews. Furthermore, all four of these reviews were initiated by the Air Force rather than the Defense Contract Management Command (DCMC), the organization primarily responsible for conducting the reviews. Since 1992, DCMC has acknowledged the importance of the reviews, but has not initiated any because, according to officials, of the time involved in developing regulations and an approach for performing those reviews. In June 1993, it asked its customers to identify potential candidates for should-cost reviews; they identified 17 candidates. DCMC plans to begin one should-cost review in July 1994 and another one after a contractor completes a restructuring action. DCMC did not consider the other 15 good candidates for should-cost reviews because of actions these contractors had taken to reduce overhead costs.

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Document Details

Document Type
Technical Report
Publication Date
Aug 03, 1994
Accession Number
ADA283814

Entities

People

  • Amy S. Parrish
  • Anne-marie Olson
  • George C. Burdette
  • John K. Harper

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms

DTIC Thesaurus Topics

  • Acquisition
  • Air Force
  • Business Administration
  • Congress
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Costs
  • Department Of Defense
  • Fighter Aircraft
  • Governments
  • National Security
  • Procurement
  • Regulations
  • Risk
  • Test And Evaluation

Fields of Study

  • Medicine
  • Political science

Readers

  • Logistics and Supply Chain Management.
  • Military Mobilization and Reserve Forces Studies.
  • Software Engineering