Defense Procurement:

Work Measurement Programs at Selected Contractor Locations

NSIAD-88-43BR: Published: Nov 4, 1987. Publicly Released: Jan 4, 1988.

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In response to a congressional request, GAO reviewed the Department of Defense (DOD) Work Measurement Program to determine whether: (1) contractors were complying with program requirements; (2) the program improved contractors' labor performance; and (3) contractors used the program results to estimate or negotiate labor hours for contract pricing.

GAO found that: (1) the four contractors it reviewed did not fully comply with work measurement program requirements; (2) because of ambiguities in the military standard and guidance for implementing the program, contractors reported higher labor productivity than actually occurred; (3) three contractors did not use work measurement data for contract pricing purposes; (4) one contractor did use the data and proposed lower contract costs as a result; and (5) although the program is intended to apply to all the armed services, only the Air Force has implemented it.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: DOD revised the Defense Federal Acquisition Regulation Supplement (DFARS) and issued handbook DOD-HDBK-345 to comply with the GAO recommendation that DOD personnel ensure wider use of the work measurement program and ensure contractor compliance with MIL-STD-1567A.

    Recommendation: The Secretary of Defense should direct DOD personnel to take actions to ensure wider use of the work measurement program and greater contractor compliance with program requirements.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: MIL-STD-1567A was revised on January 30, 1987, to clarify treatment of various labor hour components.

    Recommendation: The Secretary of Defense should revise MIL-STD-1567A and related program guidance to clarify treatment of various labor hour components.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: MIL-STD-1567A was revised on January 30, 1987, to require uniform reporting of both operator efficiency and plantwide labor performance.

    Recommendation: The Secretary of Defense should direct DOD personnel to revise MIL-STD-1567A and related program guidance to require uniform reporting of both operator efficiency and plant-wide labor performance.

    Agency Affected: Department of Defense

 

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