Defense Industry: Restructuring Costs Paid, Savings Realized, and Means to Ensure Benefits

Abstract

To encourage defense contractor consolidations, DOD announced in July 1993 that it would pay for restructuring costs on transferred flexibly priced contracts, provided that (1) the restructuring costs were allowable under the Federal Acquisition Regulation and (2) a DOD contracting officer determined that the business combination was expected to result in overall reduced costs to DOD or preserve a critical defense capability. Concerns over the payment of restructuring costs led Congress in 1994 to pass Public Law 103-337, which required a senior DOD official to certify that projections of restructuring savings were based on audited cost data and that the projected savings should result in overall reduced costs to DOD.

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Document Details

Document Type
Technical Report
Publication Date
Dec 01, 1998
Accession Number
ADA356815

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Materials and Manufacturing Processes
  • Space
  • Weapons Technologies

DTIC Thesaurus Topics

  • Acquisition
  • Aerospace Industry
  • Commerce
  • Congress
  • Contractors
  • Contracts
  • Defense Industry
  • Department Of Defense
  • Fixed Price Contracts
  • House Of Representatives
  • Law
  • National Security
  • Procurement
  • Security
  • Standards
  • Test Equipment
  • United States

Readers

  • Government Contracting/Procurement.
  • Maritime Combat Support and Expeditionary Logistics.