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Home > Society and Social Sciences > Politics and government > Contract Pricing: Economy and Efficiency Audits Can Help Reduce Overhead Costs: Nsiad-92-16
Contract Pricing: Economy and Efficiency Audits Can Help Reduce Overhead Costs: Nsiad-92-16

Contract Pricing: Economy and Efficiency Audits Can Help Reduce Overhead Costs: Nsiad-92-16


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About the Book

GAO reviewed the Department of Defense's (DOD) use of overhead should-cost reviews, cost monitoring reviews, and operations audits to reduce overhead costs, focusing on the extent to which DOD evaluated the economy and efficiency of contractors' overhead costs. GAO found that: (1) since 1985, the number of overhead should-cost reviews decreased, while the number of less comprehensive reviews increased; (2) from 1987 to 1990, the number of cost-monitoring reviews of overhead costs conducted at the nine contractor sites visited decreased by over 50 percent; (3) from 1985 to 1990, the number of operations audits of overhead costs performed at the nine contractors visited decreased by 37 percent; (4) although those analytical methods have identified significant unnecessary overhead costs, DOD believes that it did not sustain its review effort because of inadequate staffing and a shift in priorities; (5) although essential DOD assessments indicated that overhead should-cost reviews were viable, DOD did not revise its regulations to ensure that the reviews were performed; (6) since 1987, overhead rates at many major DOD contractors have increased while the value of DOD contracts has decreased; (7) anticipated work-force reductions required by recent legislation may further decrease DOD use of economy and efficiency audits; (8) overhead costs may continue to increase if the cost of DOD acquisitions continues to decline; and (9) unless DOD renews its emphasis on reducing overhead costs, those reviews may decline further as the DOD acquisition workforce is reduced.


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Product Details
  • ISBN-13: 9781289259990
  • Publisher: Bibliogov
  • Publisher Imprint: Bibliogov
  • Height: 246 mm
  • No of Pages: 46
  • Spine Width: 3 mm
  • Weight: 100 gr
  • ISBN-10: 1289259992
  • Publisher Date: 31 Jul 2013
  • Binding: Paperback
  • Language: English
  • Returnable: N
  • Sub Title: Economy and Efficiency Audits Can Help Reduce Overhead Costs: Nsiad-92-16
  • Width: 189 mm


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