Government Property:

DOD's Management of the Property It Furnishes to Contractors

NSIAD-88-151: Published: May 26, 1988. Publicly Released: May 26, 1988.

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GAO reviewed the Department of Defense's (DOD) management of government property furnished to DOD contractors to determine the: (1) effectiveness of DOD implementation of the government policy of relying on contractors to provide the property needed for government contracts; (2) adequacy of management controls over contractor requisitions; and (3) adequacy of government oversight of property in contractors' possession.

GAO found that DOD: (1) did not effectively implement the policy of relying on contractors to provide materiel for government contracts; (2) either did implement or inadequately implemented regulations designed to control contractors' materiel requisitions; (3) did not adequately enforce federal acquisition regulations requiring contractors to account for government-owned property in their possession and the government to oversee contractors' materiel management; and (4) made slow progress in developing and implementing financial property accounting systems.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: DOD has established milestones for each action. All the actions concerning the Defense Logistics Agency have been completed. Service actions are expected to be completed in the early 1990s.

    Recommendation: To ensure that all of these actions are implemented in a timely fashion, the Secretary of Defense should establish specific milestones for each action.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: The DOD Inspector General is monitoring and reporting on the progress made by the services on the last action.

    Recommendation: To ensure that all of these actions are implemented in a timely fashion, the Secretary of Defense should direct the Inspector General to independently monitor and report on the progress made by the services to implement each action.

    Agency Affected: Department of Defense

 

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