Controls Over DOD's Management Support Service Contracts Need Strengthening

Gao ID: MASAD-81-19 March 31, 1981

The Department of Defense (DOD) spent over $2.5 billion in fiscal year 1979 on all types of management support service contracts. These services ranged from relatively simple studies to aid in management decisions to contracts involving complex engineering support services for major weapon systems.

In spite of the continuing attention being focused on the use of contract consultants, serious and pervasive problems continue to exist. These problems include: (1) the weakening in-house capabilities of DOD to perform its mission; (2) extensive contract awards resulting from unsolicited proposals; (3) the significant involvement of former DOD officials and employees in contracts; (4) the continuous renewal of contracts; (5) instances of questionable need for and use made of the contract services; (6) the overuse of sole-source awards; and (7) extensive contract modifications. GAO believes that an assessment of the capability of DOD to perform all essential management functions in-house under existing personnel ceiling constraints is needed to achieve effective actions for these problems.

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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