Defense Contractor Restructuring; Benefits to DoD and Contractors

Abstract

As a result of declining defense expenditures, contractors have been consolidating and restructuring their operations to reduce costs through activities such as disposing of facilities, combining operations and systems, relocating workers and equipment, and reducing workforce personnel. We reviewed seven defense contractor business combinations to determine whether the Department of Defense (DOD) is realizing savings as a result of such restructuring activities. Specifically, we (1) identified the amount of restructuring savings expected by DOD from the seven business combinations, (2) assessed the impact of selected restructuring activities on the contractors' cost of operations, and (3) determined if savings could be traced to contract prices. Our report is based on data from 10 individual contractor business segments, including at least 1 segment from each of the 7 business combinations.

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Document Details

Document Type
Technical Report
Publication Date
Sep 01, 1998
Accession Number
ADA353489

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Human Systems
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Aerospace Industry
  • Commerce
  • Congress
  • Contractors
  • Contracts
  • Cost Reductions
  • Costs
  • Defense Industry
  • Department Of Defense
  • Fixed Price Contracts
  • Indirect Costs
  • Law
  • Military Acquisition
  • National Security
  • Procurement
  • United States

Readers

  • Economics
  • Government Contracting/Procurement.