Defense Contractor Restructuring: First Application of Cost and Savings Regulations

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) implementation of defense contractor restructuring regulations to determine whether: (1) the certification process was carried out in accordance with the interim regulations; and (2) restructuring had resulted in lower DOD contract prices. The review focused on the United Defense, Limited Partnership business combination between FMC Corporation's Defense Systems Group and Harsco Corporation's BMY-Combat Systems Division, two manufacturers of tracked combat vehicles for the army.