Strategic Forces:

Procurement Practices at Northrop's Advanced Systems Division

NSIAD-88-68BR: Published: Dec 21, 1987. Publicly Released: Jan 22, 1988.

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Pursuant to a congressional request, GAO reviewed the procurement practices of an Air Force MX missile contractor.

GAO found that: (1) the contractor's internal audit revealed no evidence that it used "doing business as" (DBA) accounts, although another division of the firm did use such accounts, circumventing the established purchasing system to procure parts more quickly; and (2) without appropriate controls, use of DBA accounts could increase the risk of procuring substandard or duplicate parts. GAO also found that the Air Force: (1) is reviewing the audit; and (2) has not approved the firm's purchasing system, since it has found numerous system deficiencies.

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