Government Contracting: A Proposal for a Program To Study the Profitability of Government Contractors

GAO drafted the Profit Reporting Program (PRP) to correct weaknesses noted in Department of Defense contractors' profitability report studies that would require: (1) a consistent and appropriate analytical methodology to evaluate profitability; (2) a means to verify contractor-furnished data; and (3) mandatory contractor participation. GAO also proposed legislation to require major government contractors to make annual financial reports to an independent government unit.