Government Property:
DOD's Management of the Property It Furnishes to Contractors
NSIAD-88-151: Published: May 26, 1988. Publicly Released: May 26, 1988.
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GAO reviewed the Department of Defense's (DOD) management of government property furnished to DOD contractors to determine the: (1) effectiveness of DOD implementation of the government policy of relying on contractors to provide the property needed for government contracts; (2) adequacy of management controls over contractor requisitions; and (3) adequacy of government oversight of property in contractors' possession.
GAO found that DOD: (1) did not effectively implement the policy of relying on contractors to provide materiel for government contracts; (2) either did implement or inadequately implemented regulations designed to control contractors' materiel requisitions; (3) did not adequately enforce federal acquisition regulations requiring contractors to account for government-owned property in their possession and the government to oversee contractors' materiel management; and (4) made slow progress in developing and implementing financial property accounting systems.
Recommendations for Executive Action
Status: Closed - Implemented
Comments: DOD has established milestones for each action. All the actions concerning the Defense Logistics Agency have been completed. Service actions are expected to be completed in the early 1990s.
Recommendation: To ensure that all of these actions are implemented in a timely fashion, the Secretary of Defense should establish specific milestones for each action.
Agency Affected: Department of Defense
Status: Closed - Implemented
Comments: The DOD Inspector General is monitoring and reporting on the progress made by the services on the last action.
Recommendation: To ensure that all of these actions are implemented in a timely fashion, the Secretary of Defense should direct the Inspector General to independently monitor and report on the progress made by the services to implement each action.
Agency Affected: Department of Defense
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