GAO's Comments on the Defense Contract Profit Policy Act of 1988

Gao ID: T-NSIAD-88-33 June 2, 1988

GAO discussed the proposed Defense Contract Profit Policy Act of 1988. GAO noted that it supported the act, since it encompassed the major aspects of a GAO proposal for a Profitability Reporting Program, including requiring: (1) Department of Defense (DOD) contractors to report financial data regarding realized profits; and (2) DOD to analyze the results of these profits on government business. GAO also noted that the act's provisions would: (1) give DOD better and more timely assurance that its profit policies are producing the intended results; (2) protect individual contractors by dealing only with aggregate data; and (3) establish an advisory council to address data analysis methodology issues.



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