Unallowable Costs

Improved Cost Principles Should Reduce Inconsistent Treatment of These Costs Gao ID: NSIAD-87-11 October 10, 1986

Pursuant to a legislative requirement, GAO evaluated the Department of Defense's (DOD) efforts regarding unallowable contract costs.

GAO found that: (1) DOD has made significant efforts to comply with congressional intent by prescribing new and amended cost principles within the prescribed time period; (2) while allowability criteria cannot always be written in such a manner as to remove all ambiguity, DOD has directly addressed the allowability of certain costs; and (3) DOD could still improve provisions regarding entertainment and lobbying costs.

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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