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 1995-08-10 monographic deposited born digital 21 p. GA 1.13:NSIAD-95-106 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-95-106 P0b002ee18037ea41 f:ns95106 DGPO 2010-08-12 2011-03-28 GAOREPORTS-NSIAD-95-106 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-95-106 NSIAD-95-106 Department of Defense contractors Contractor payments Reporting requirements Contract costs Procurement regulation Defense cost control Data collection operations Compliance Questionable payments Overhead costs Letter Report NSIAD Section 818 of the National Defense Authorization Act for Fiscal Year 1995 governs payments made by the Defense Department (DOD) to contractors for costs associated with business combinations, including mergers and acquisitions. Normally, after a business combination, a new company will undertake restructuring activities, such as closing plants, eliminating jobs, and relocating workers. Section 818 prohibits payment of restructuring costs until DOD officials certify that projected savings from the business combination are based on audited cost data and should reduce costs to DOD. DOD regulations do not comply with section 818 requirements because all restructuring costs associated with defense contractor business combinations, for which contractors may be reimbursed, will not be subject to the section's certification requirements. By excluding some restructuring costs that should be subject to section 818 certification requirements, DOD cannot ensure that payment of these costs are made only when in the best interests of the United States. Further, the regulations cannot ensure that DOD will be able to meet the section's annual reporting requirements to Congress. Moreover, DOD plans to pay restructuring costs up to the amount of savings projected to result from a business combination, which would result in the payment of those costs without significant projected savings to DOD. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-95-106/html/GAOREPORTS-NSIAD-95-106.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-95-106/pdf/GAOREPORTS-NSIAD-95-106.pdf GAO/NSIAD-95-106 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-95-106 Letter Report GAO/NSIAD-95-106; Defense Restructuring Costs: Payment Regulations Are Inconsistent with Legislation; Department of Defense contractors Contractor payments Reporting requirements Contract costs Procurement regulation Defense cost control Data collection operations Compliance Questionable payments Overhead costs