United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 2006-04-05 monographic deposited born digital 23 p. GA 1.13:GAO-06-409T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-06-409T P0b002ee1803757a0 f:d06409t DGPO 2010-08-12 2011-03-23 GAOREPORTS-GAO-06-409T machine generated eng fdlp REPORT GAOREPORTS-GAO-06-409T GAO-06-409T Accountability Awards Contract administration Contract performance Contractor payments Cost plus award fee contracts Cost plus incentive fee contracts Defense procurement Department of Defense contractors Investment planning Weapons systems Incentive fees Investment management Comanche Helicopter F/A-22 Aircraft Joint Strike Fighter RAH-66 Helicopter Testimony A50897 With DOD spending over $200 billion annually to acquire products and services that include everything from spare parts to the development of major weapon systems, our numerous, large, and mounting fiscal challenges demand that DOD maximize its return on investment and provide the warfighter with needed capabilities at the best value for the taxpayer. In an effort to encourage defense contractors to perform in an innovative, efficient, and effective way, DOD gives its contractors the opportunity to collectively earn billions of dollars through monetary incentives known as award and incentive fees. Using these incentives properly--in concert with good acquisition practices--is a key to minimizing waste, maximizing value, and getting our military personnel what they need, when and where they need it. Congress asked GAO to testify on DOD's use of award and incentive fees and the role they play in the acquisition system. This statement highlights the risks of conducting business as usual and identifies the actions DOD needs to take to use these fees more effectively. DOD concurred or partially concurred with the seven recommendations GAO made in a previously issued report on award and incentive fees. GAO looks forward to seeing DOD turn these promised steps into actual policy and practice. https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-06-409T/html/GAOREPORTS-GAO-06-409T.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-GAO-06-409T/pdf/GAOREPORTS-GAO-06-409T.pdf GAO-06-409T https://www.govinfo.gov/app/details/GAOREPORTS-GAO-06-409T Testimony GAO-06-409T; Defense Acquisitions: DOD Wastes Billions of Dollars through Poorly Structured Incentives; Accountability Awards Contract administration Contract performance Contractor payments Cost plus award fee contracts Cost plus incentive fee contracts Defense procurement Department of Defense contractors Investment planning Weapons systems Incentive fees Investment management Comanche Helicopter F/A-22 Aircraft Joint Strike Fighter RAH-66 Helicopter