Defense Contractor Material Management and Accounting Systems

T-NSIAD-88-20: Published: Mar 22, 1988. Publicly Released: Mar 22, 1988.

Additional Materials:

Contact:

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

GAO discussed its evaluation of the Department of Defense (DOD) and industry agreement for resolving problems with contractor Materiel Requirements Planning (MRP) systems. GAO noted that MRP system deficiencies have caused: (1) inaccurate contract charges and government billings; (2) improper payment requests; and (3) defective pricing. GAO also noted that the DOD and industry agreement requires MRP systems that: (1) are completely documented and auditable; (2) have adequate internal accounting and administrative controls; (3) have no inherent biases or preferences for certain contract types; and (4) have no significant differences between cost transfers into and out of a contract. GAO found that the: (1) Defense Contract Audit Agency believes that the agreement will significantly improve MRP systems; (2) agreement does not change existing regulations, except that it encourages the commingling of government and commercial inventory as long as the government's interests are protected; and (3) agreement needs additional clarification regarding audit procedures, implementation guidance, application to small contractors, and the implications of proposed legislation to protect the government's interests.

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here