Consulting Services:

Role and Use in Acquiring Three Weapon Systems

NSIAD-90-119: Published: Aug 20, 1990. Publicly Released: Sep 25, 1990.

Additional Materials:

Contact:

Paul L. Jones
(202) 512-4636
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) use of consulting services in acquiring three weapon systems, focusing on: (1) how DOD contractors used consultants; and (2) whether consultants worked for both the government and defense contractors on weapon systems and, if so, whether any conflicts of interest existed.

GAO found that: (1) from 1984 through 1989, the Army obligated at least $9 million in consulting services for the Fiber Optic Guided Missile; (2) from 1983 through 1989, the Navy obligated $18 million in consulting services for the V-22 aircraft; (3) during fiscal years 1987 and 1988, the Air Force contracted for consulting services to support the Peacekeeper Rail Garrison project; (4) the Air Force did not separately identify the amount it obligated for consulting services; (5) 3 of the 6 defense contractors GAO reviewed retained 18 consultants to advise them on dealing with DOD; (6) 4 of the 6 contractors used 40 additional contractors to obtain more technical services; (7) there were no conflicts of interest in the three instances it identified where consultants worked for both the government and a defense contractor on matters related to the same weapon systems, but one contractor did not comply with its contract's conflict-of-interest provisions; (8) the Army and Air Force did not classify consulting services for one Fiber Optic Guided Missile contract and seven Rail Garrison project contracts and did not designate commands to manage those systems; and (9) the services had differing interpretations of what constituted advisory and assistance services and inaccurately identified consulting services in their budget submissions to Congress.

Recommendations for Executive Action

  1. Status: Closed - Implemented

    Comments: DOD concurred with the recommendation and is implementing Office of Federal Procurement Policy letter 89-1. Action was expected to be completed in late 1991. Action is now expected sometime in 1992. DOD Directive 4205.2 was issued February 10, 1992. The directive clarifies guidance.

    Recommendation: To improve DOD identification and reporting of contracted assistance and advisory services (CAAS), the Secretary of Defense should review and clarify existing guidance on CAAS to preclude differing interpretations among the military services.

    Agency Affected: Department of Defense

  2. Status: Closed - Implemented

    Comments: DOD agreed with the recommendation and is implementing the CAAS management plan. Comments on the revised CAAS directive were due in October 1991. This date was extended to March 1992. Action is pending. DOD Directive 4205.2 was issued February 10, 1992. The directive clarifies roles, procedures, and internal controls.

    Recommendation: To improve DOD identification and reporting of CAAS, the Secretary of Defense should direct DOD and component CAAS directors to strengthen their review procedures to ensure that the services accurately report CAAS budget data.

    Agency Affected: Department of Defense

  3. Status: Closed - Implemented

    Comments: The action plan for CAAS was approved in July 1990. The implementation plan was to be completed at the end of 1991. Approval was delayed. Action is pending. Directive 4205.2 requires that CARS are accurately identified and entered into the accounting system.

    Recommendation: To improve DOD identification and reporting of CAAS, the Secretary of Defense should direct the Secretaries of the Army, Navy, and Air Force to review and, where necessary, develop or revise component instructions and procedures to ensure that CAAS are accurately identified and entered into the accounting systems.

    Agency Affected: Department of Defense

 

Explore the full database of GAO's Open Recommendations »

Sep 22, 2016

Sep 21, 2016

Sep 19, 2016

Sep 12, 2016

Sep 8, 2016

Sep 7, 2016

Sep 6, 2016

Aug 25, 2016

Looking for more? Browse all our products here