Difference between revisions of "Restructuring Activities - GAO Report 95-105"
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Latest revision as of 16:03, 4 December 2014
GAO Report - NSIAD-95-106[1]
Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) regulations regarding payments for contractors' business restructuring costs, focusing on whether the regulations:
- (1) are consistent with the Defense Authorization Act for Fiscal Year 1995 and other applicable procurement laws and regulations; and
- (2) ensure that restructuring costs are paid only when in the best interests of the United States.
GAO found that:
- (1) the DOD regulations do not comply with the authorization act's requirements because they do not require that all restructuring costs meet the certification requirements;
- (2) DOD makes a distinction in the types of restructuring activities and excludes so-called internal activity costs from the certification requirements;
- (3) internal activity costs are excluded from the act's certification requirements even if they are associated with the business combination;
- (4) the act does not distinguish between restructuring activities that are the result of the business combination;
- (5) DOD cannot ensure that payment of these restructuring costs are in the nation's best interest;
- (6) the regulations do not require contractor cost and savings data needed for DOD annual congressional reports to ensure that overall savings are obtained; and
- (7) DOD plans to pay restructuring costs up to the amount of the projected savings from the business restructuring, which will result in negligible savings to DOD.
GAO Report
File:GAO - External Restructuring Cost Report.pdf
References
- ↑ http://www.gao.gov/products/NSIAD-95-106, as of October 2014