Defense Procurement

Work Measurement Programs at Selected Contractor Locations Gao ID: NSIAD-88-43BR November 4, 1987

In response to a congressional request, GAO reviewed the Department of Defense (DOD) Work Measurement Program to determine whether: (1) contractors were complying with program requirements; (2) the program improved contractors' labor performance; and (3) contractors used the program results to estimate or negotiate labor hours for contract pricing.

GAO found that: (1) the four contractors it reviewed did not fully comply with work measurement program requirements; (2) because of ambiguities in the military standard and guidance for implementing the program, contractors reported higher labor productivity than actually occurred; (3) three contractors did not use work measurement data for contract pricing purposes; (4) one contractor did use the data and proposed lower contract costs as a result; and (5) although the program is intended to apply to all the armed services, only the Air Force has implemented it.

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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