Unallowable Costs and Penalties

Gao ID: NSIAD-94-204R July 6, 1994

Pursuant to a congressional request, GAO reviewed the extent to which the Department of Defense (DOD) uses the penalty provision in the DOD Authorization Act of 1986 to deter defense contractors from submitting unallowable and questionable cost claims. GAO noted that: (1) the information that the Defense Contract Management Command (DCMC) collected on the use of penalties was limited; (2) a more complete and better organized system for collecting and analyzing penalty information would be cost beneficial as a basis for DCMC oversight; and (3) a more formal system for maintaining penalty data could help DCMC manage DOD contracting officers' use of the penalty provision.

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.

Director: Louis J. Rodrigues Team: Government Accountability Office: Acquisition and Sourcing Management Phone: (202) 512-4841


The Justia Government Accountability Office site republishes public reports retrieved from the U.S. GAO These reports should not be considered official, and do not necessarily reflect the views of Justia.