Component Breakout Program for Major Systems
Abstract
Our overall audit objective was to determine if the Services were performing adequate component breakout reviews and aggressively pursuing component breakout on major systems. Our specific objectives were to: - Determine whether major components were being considered for breakout, with primary consideration given to those components representing the highest annual procurement costs and offering the largest potential net savings through breakout. - Determine whether components susceptible to breakout were identified early in the acquisition cycle to ensure that the necessary technical data packages were obtained and that maximum savings from the breakout action were achieved. - Determine whether results of breakout reviews were adequately justified and documented. - Evaluate the validity of the reasons for not breaking out components. - Identify added costs to DoD resulting from procurement of components from the prime contractor rather than the actual manufacturer; conversely, identify management costs occasioned by breakout. - Evaluate compliance with applicable internal controls. - Follow up on prior audit recommendations either to study components for breakout or to break out particular components.
Document Details
- Document Type
- Technical Report
- Publication Date
- Dec 05, 1990
- Accession Number
- ADA380688
Entities
Organizations
- Office of the Inspector General, U.S. Department of Defense