United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1994-07-19 monographic deposited born digital GA 1.13:NSIAD-94-153 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-94-153 P0b002ee18039bbd9 f:ns94153 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-94-153 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-94-153 NSIAD-94-153 Defense procurement Cost accounting standards compliance Cost analysis Contracting officers Contractor responsibility Department of Defense contractors Risk management Future budget projections Procurement regulation Contract noncompliance Letter Report NSIAD GAO evaluated the Defense Department's (DOD) efforts to ensure that high-risk contractors reduce the government's vulnerability to contract pricing. GAO found that contractors' performance in correcting their significant cost-estimating system deficiencies has been mixed. Although 19 of the 30 contractors GAO reviewed had corrected all their major cost-estimating system shortcomings, the remaining 11 contractors had deficiencies that had been outstanding an average of 3.8 years. Not correcting estimating deficiencies promptly creates a variety of problems for DOD, including increased costs and delays in contract awards. Although DOD contracting officers have used various approaches to encourage contractors to correct their cost-estimating system deficiencies, contracting officers have not resorted to the more stringent measures available, such as reducing progress payments or recommending nonaward of future contracts. GAO found that Defense Logistics Agency (DLA) oversight of contracting officers is important--especially where deficiencies are longstanding--for two reasons. First, contracting officers have considerable latitude in deciding how to obtain corrective action. Second, DOD does not specify criteria used to determine timeliness of corrective actions. Although contracting officers need flexibility in working with contractors, DOD also needs to periodically review the adequacy of contracting officer actions and ensure that estimating system deficiencies are promptly corrected. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-94-153/html/GAOREPORTS-NSIAD-94-153.htm GAO/NSIAD-94-153 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-94-153 Letter Report GAO/NSIAD-94-153; Contract Pricing: DOD Management of Contractors With High-Risk Cost-Estimating Systems; Defense procurement Cost accounting standards compliance Cost analysis Contracting officers Contractor responsibility Department of Defense contractors Risk management Future budget projections Procurement regulation Contract noncompliance