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 1995-09-28 monographic deposited born digital 20 p. GA 1.13:NSIAD-95-174 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-95-174 P0b002ee18037cb70 f:ns95174 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-95-174 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-95-174 NSIAD-95-174 Research and development facilities Aerospace research Aerospace contracts Research and development contracts Air Force procurement Contract monitoring Department of Defense contractors Space exploration Funds management Administrative costs GPS NAVSTAR Global Positioning System Letter Report NSIAD Pursuant to a congressional request, GAO reviewed how the Aerospace Corporation used a $15.5 million contract fee provided by the Air Force in fiscal year 1993 to operate a federally funded research and development center (FFRDC), focusing on the regulatory requirements governing the determination and use of this fee.<p/>GAO found that: (1) Aerospace Corporation spent 74 percent of the contract fee on research and the remainder on equipment purchases, property improvements, and unreimbursed expenses; (2) although the Air Force stated the fee's intended use as a basis for award, Aerospace had discretion over how to spend the fee once awarded; and (3) the manner in which a contractor spends its corporate funds in a given year can affect how much of a fee is needed the following year. In addition, GAO found that the Department of Defense recommended that: (1) defense FFRDC fee amounts should be based on the contracting officer's determination of fee need and not on the application of weighted guidelines; (2) all allowable and allocable costs should be moved to the cost reimbursement portion of the contract; and (3) guidance should be developed on what costs are to be considered ordinary and necessary to the operation of an FFRDC. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-95-174/html/GAOREPORTS-NSIAD-95-174.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-95-174/pdf/GAOREPORTS-NSIAD-95-174.pdf GAO/NSIAD-95-174 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-95-174 Letter Report GAO/NSIAD-95-174; Federally Funded R&D Centers: Use of Contract Fee by the Aerospace Corporation; Research and development facilities Aerospace research Aerospace contracts Research and development contracts Air Force procurement Contract monitoring Department of Defense contractors Space exploration Funds management Administrative costs GPS NAVSTAR Global Positioning System