Defense Contractor Restructuring: First Application of Cost and Savings Regulations.
Abstract
Section 818 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103-337) restricts Department of Defense (DOD) payments to contractors for costs associated with business combinations. Specifically, it prohibits the payment of restructuring costs, such as those associated with closing facilities and eliminating jobs, until a senior DOD official certifies that projected savings from the restructuring are based on audited data and should result in overall reduced costs to DOD. In response to section 818 requirements, DOD issued interim regulations on restructuring costs effective December 29,1994.
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 01, 1996
- Accession Number
- ADA307065
Entities
Organizations
- United States Government Accountability Office