Agency Implementation of Cost Accounting Standards

Generally Good but More Training Needed Gao ID: PLRD-82-51 March 24, 1982

GAO examined how certain agencies are implementing cost accounting standards which must be observed in both existing and future negotiated national defense contracts.

The Departments of Defense and Energy and the National Aeronautics and Space Administration (NASA) have developed generally adequate internal organizations to implement the standards. In addition, interagency organizations have been established to ensure the necessary cooperation among the agencies in implementing the standards. While new standards are no longer being promulgated, continuing implementation problems require that some organizational structure be retained to resolve these problems, to provide guidance in the area of cost measurement, and to ensure a uniform approach toward the standards and cost measurement in general. Agencies have generally made the standards, rules, and regulations available to their field offices in a timely manner. However, GAO found much duplication in the distribution and reproduction of this material which could be eliminated by using a single page reference to the Code of Federal Regulations to publish the cost accounting standards requirements. Some agencies involved in the procurement process should improve their cost accounting standards training process. This training should be required of all procurement personnel who will be involved with national defense contracts, and advanced training should be made available to personnel designated as experts. The formal recognition of experts and the prescription of appropriate training programs are matters needing further attention. The quality of information in the federal procurement data bank needs improvement since it contains errors regarding cost accounting standards clauses.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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