Comments on DOD's Implementation of Recent Procurement Reforms

Gao ID: T-NSIAD-87-23 March 31, 1987

GAO discussed recent changes in Department of Defense (DOD) procurement policies, specifically: (1) competition in contracting; (2) work force improvement; (3) testing; (4) warranties; and (5) pricing policies. GAO found that: (1) although Congress approved revisions to some Federal Acquisition Regulation (FAR) provisions to ensure consistency with the Competition in Contracting Act, FAR does not reflect congressional intent in many respects; (2) DOD mandated training and experience levels for contracting officers and program managers; (3) although the adequacy of operational testing has improved, DOD needs more effective oversight; (4) DOD generally complied with warranty legislation, but some implementation problems still exist; (5) the severe growth of spare parts prices and the adequacy of price analysis improved; (6) some DOD contracting officers used ineffective pricing techniques; (7) the DOD program for surveillance of contractors' cost-estimating systems was not effective and left some contractors with unresolved estimating deficiencies; and (8) although DOD has taken action to control the use of unpriced contracts, it needs better regulation enforcement.

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