Improvements Needed in Pricing Overhaul and Repair Services Performed for Foreign Countries
AFMD-84-12
Published: Dec 12, 1983. Publicly Released: Dec 12, 1983.
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Highlights
GAO reviewed the adequacy of billings by the military services to foreign countries for material, labor, and other costs incurred in overhauling and repairing foreign military equipment.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should require the military services to examine their systems for collecting costs to ensure that all required costs of materials used in overhaul and repair of foreign countries' equipment are billed. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should direct the Air Force to make sure that: (1) all required costs of engine overhaul services are billed; and (2) all civilian labor costs for retirement are included in foreign customer billings. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should direct the military services to make every reasonable attempt to bill for and collect the $4.6 million in past undercharges for repair and overhaul work identified in this report. |
Closed – Implemented
A May 23, 1984 memo from Office of the Secretary of Defense indicated concurrence with all recommendations and that actions had been completed. GAO is now in the process of verifying the dollar amount of quantifiable savings and preparing an accomplishment report.
|
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Topics
Billing proceduresEquipment repairsFinancial managementForeign military assistanceLabor costsMilitary materielMilitary forcesForeign governmentsExport controlsForeign military sales