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Costs of Compliance With the Renegotiation Act of 1951 as Amended

B-102963 Published: Mar 16, 1979. Publicly Released: May 06, 1985.
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Highlights

In a review of the costs of compliance with the Renegotiation Act of 1951, GAO found that contractors would necessarily incur some costs in complying with the Act. However, GAO was unable to determine the magnitude of such costs or to what extent they were incremental to other financial data costs. The primary problem in determining and verifying such costs was that the contractors' accounting systems were not designed to identify and segregate that data. Based on the estimates of compliance costs prepared by contractors, it appeared that costs were not proportional to renegotiable sales.

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Contractor personnelContractorsLegislationCompliance oversightProfitsAccounting systemsCompliance costsGovernment procurementSystems acquisitionElectronic data processing