DOD Guidance on the Combined Procurement Procedure Needs Provisions for Audit Verification
NSIAD-85-112
Published: Jul 08, 1985. Publicly Released: Jul 08, 1985.
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Highlights
GAO reviewed existing and proposed Department of Defense (DOD) guidance, DOD and contractor audit reports, and Navy and contractor procurement records on the use of the combined procurement procedure to order spare parts and production components for weapon systems to determine whether DOD guidance was adequate to ensure that savings from the procedure were being realized.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should add provisions to the proposed DOD instruction or to other guidance on the combined procurement procedure that would require that whenever DCAA is requested to audit a proposal that it be provided the necessary information to verify that orders are combined for pricing purposes. |
Closed – Implemented
Revised DOD Instruction 4245.12 incorporates the recommendation. It has been approved and is scheduled for publication in January 1987.
|
| Department of Defense | The Secretary of Defense should direct the Secretary of the Navy to ask DCAA, as part of its normal audit work, to verify that the F/A-18 manufacturers are combining orders for pricing purposes. |
Closed – Implemented
DCAA was requested to verify that the F/A-18 manufactures are combining, or not combining, orders for pricing purposes on July 1, 1985.
|
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Topics
Aircraft componentsContract costsCost controlDefense auditsDefense procurementNaval aircraftWeapons systemsProcurementMilitary forcesSpare parts