GAO Views and Position on Profit Limitations and the Vinson-Trammell Act

GAO was asked the following questions concerning the Vinson-Trammell Act profit limitations: (1) whether GAO has performed any studies of Department of Defense (DOD) contractor profits; (2) how GAO views the adequacy of each of the various supposed surrogates, such as the Truth in Negotiations Act or the Cost Accounting Standards Act, to protect fully against excess profits; (3) whether the GAO position on replacing the Vinson-Trammell Act remains the same as it was last year; and (4) if GAO still believes that the Vinson-Trammell Act should be replaced, what form the replacement statute should take.