Analysis of Selected Sections of DOD Revised Breakout Regulation

NSIAD-84-138: Published: Jun 19, 1984. Publicly Released: Jun 19, 1984.

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Pursuant to a congressional request, GAO reviewed certain parts of the Department of Defense's (DOD) parts breakout regulation to determine whether they inhibit or promote competition. GAO also examined issues associated with DOD breakout efforts. Parts breakout refers to the practice of acquiring a part directly from the manufacturer that is not the prime contractor.

GAO found that DOD has experienced longstanding problems in achieving greater competition through the breakout program. GAO believes that the new breakout regulation must be properly implemented with the necessary commitment and resources to ensure increased competition. In addition, GAO believes that DOD should reassess its definition of the "actual manufacturer" of the part.

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