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Contract Pricing: Obligations Exceed Definitized Prices on Unpriced Contracts

NSIAD-86-128 Published: May 02, 1986. Publicly Released: May 19, 1986.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) use of unpriced contracts to determine if contracting officers were using them properly and pricing them on time.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should: (1) review existing unpriced contracts to deobligate excess funds; and (2) implement controls on a DOD-wide basis to prevent excess obligations on future unpriced contracts.
Closed – Implemented
DOD fully concurred with and implemented this recommendation. An accomplishment report is in process.

Full Report

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Topics

Contract administrationContract costsDefense cost controlFinancial managementObligated budget balancesProcurement practicesMilitary forcesInternal controlsFederal agency accounting systemsContract terms