Overhead Costs:

Unallowable and Questionable Costs Charged by McDonnell Douglas Corporation

T-NSIAD-94-60: Published: Oct 13, 1993. Publicly Released: Oct 13, 1993.

Additional Materials:

Contact:

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

GAO discussed a Department of Defense contractor's inclusion of unallowable and questionable costs in its overhead cost submissions. GAO noted that: (1) of the $2.3 million in overhead costs the contractor submitted for payment, $1.6 million were unallowable or questionable; (2) unallowable or questionable costs included costs for alcoholic beverages, entertainment, meals, employee relations, professional public relations services, and other unallowable charges; (3) the costractor's cost for distributing a corporate videotape was unreasonably high; (4) the actual amount of unallowable or questionable costs depends on the amount of defense versus commercial business performed and type of government contract; and (5) the contractor's inclusion of unallowable or questionable costs in its overhead costs submissions was primarily due to weak internal controls and its interpretation of federal procurement regulations.

Nov 22, 2017

Oct 31, 2017

Oct 27, 2017

Oct 26, 2017

Oct 16, 2017

Oct 10, 2017

Oct 5, 2017

Sep 29, 2017

Sep 28, 2017

Looking for more? Browse all our products here