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<classification authority="sudocs">GA 1.13:NSIAD-98-225</classification>
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 <subject>Department of Defense contractors</subject>
 <subject>Defense cost control</subject>
 <subject>Defense procurement</subject>
 <subject>Defense economic analysis</subject>
 <subject>Human resources utilization</subject>
 <subject>Reductions in force</subject>
 <subject>Contract costs</subject>
 <subject>Cost analysis</subject>
 <identifier>Air Force Titan Launch Vehicle Program</identifier>
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<titleInfo>
 <title>Defense Contractor Restructuring: Benefits to DOD and Contractors</title>
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<abstract>Pursuant to a congressional request, GAO provided information on seven
defense contractor business combinations to determine whether the
Department of Defense (DOD) is realizing savings as a result of such
restructuring activities, focusing on: (1) the amount of restructuring
savings expected by DOD from the seven business combinations; (2) the
impact of selected restructuring activities on the contractors&apos; cost of
operations; and (3) whether savings could be traced to contract prices.&lt;p/&gt;GAO noted that: (1) for the seven business combinations GAO reviewed,
DOD expects that it will save about $3.3 billion from contractor
restructuring activities, such as laying off workers, closing
facilities, and relocating employees and equipment; (2) GAO&apos;s assessment
of selected restructuring activities showed that they had lowered the
cost of operations at the seven business combinations by hundreds of
millions of dollars; (3) such reductions benefited DOD because the costs
of defense contracts were lower than they would have been if the
restructuring activities had not occurred; (4) determining the precise
impact of restructuring on specific contract prices requires isolating
the impact of these activities from nonrestructuring-related factors,
such as changes in business volume, quantities purchased, and accounting
practices; and (5) DOD, selected business segments, and GAO were
generally not able to isolate the effects of restructuring from those of
other factors.</abstract>
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 <topic>Department of Defense contractors</topic>
 <topic>Defense cost control</topic>
 <topic>Defense procurement</topic>
 <topic>Defense economic analysis</topic>
 <topic>Human resources utilization</topic>
 <topic>Reductions in force</topic>
 <topic>Contract costs</topic>
 <topic>Cost analysis</topic>
 <topic>Air Force Titan Launch Vehicle Program</topic>
 <topic>B-2 Aircraft</topic>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 337 (103rd Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 103-337</identifier>
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<relatedItem type="isReferencedBy">
 <titleInfo>
  <title>United States Public Law 208 (104th Congress)</title>
</titleInfo>
 <identifier type="public law citation">Public Law 104-208</identifier>
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 <titleInfo>
  <title>United States Public Law 85 (105th Congress)</title>
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 <identifier type="public law citation">Public Law 105-85</identifier>
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