Followup on the December 1981 Dollar Threshold Change for Certified Cost or Pricing Data
PLRD-83-49: Published: Mar 8, 1983. Publicly Released: Apr 11, 1983.
Additional Materials:
- Full Report:
Contact:
GAO was asked to review recent changes in the Truth-in-Negotiations Act, which increased the threshold for the mandatory submission and certification of the cost and pricing data for negotiated procurements from $100,000 to $500,000.
GAO found that file reviews or audits of proposals in the $100,000 to $500,000 range have been cost effective and should be continued. However, GAO stated that it should be clear that the determination of the need for auditing proposals is independent of the statutory threshold for providing certified cost or pricing data. The need for a preaward proposal audit is and always has been required at the discretion of the contracting officer. Nineteen standards were promulgated pursuant to P.L. 91-379 to achieve greater uniformity and consistency in the cost accounting practices of Department of Defense contractors. To the degree that the increased threshold influences contracting officers to forego cost data on fixed-price contracts, the number of contracts that would be exempt from following the standards would increase. GAO is concerned that the threshold change to P.L. 87-653 may reduce the Government's assurance of fair and reasonable prices on negotiated contracts in the $100,000 to $500,000 range.
Jan 21, 2021
-
Close Air Support:
Actions Needed to Enhance Friendly Force Tracking Capabilities and Fully Evaluate TrainingGAO-21-99: Published: Jan 21, 2021. Publicly Released: Jan 21, 2021.
Jan 19, 2021
-
GPS Modernization:
DOD Continuing to Develop New Jam-Resistant Capability, But Widespread Use Remains Years AwayGAO-21-145: Published: Jan 19, 2021. Publicly Released: Jan 19, 2021.
Jan 14, 2021
-
Columbia Class Submarine:
Delivery Hinges on Timely and Quality Materials from an Atrophied Supplier BaseGAO-21-257: Published: Jan 14, 2021. Publicly Released: Jan 14, 2021. -
Department of Defense:
Actions Needed to Improve Accounting of Intradepartmental TransactionsGAO-21-84: Published: Jan 14, 2021. Publicly Released: Jan 14, 2021.
Jan 12, 2021
-
DOD Critical Technologies:
Plans for Communicating, Assessing, and Overseeing Protection Efforts Should Be CompletedGAO-21-158: Published: Jan 12, 2021. Publicly Released: Jan 12, 2021.
Dec 10, 2020
-
Climate Resilience:
DOD Coordinates with Communities, but Needs to Assess the Performance of Related Grant ProgramsGAO-21-46: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020. -
Electromagnetic Spectrum Operations:
DOD Needs to Address Governance and Oversight Issues to Help Ensure SuperiorityGAO-21-64: Published: Dec 10, 2020. Publicly Released: Dec 10, 2020.
Dec 2, 2020
-
Navy and Marine Corps:
Services Continue Efforts to Rebuild Readiness, but Recovery Will Take Years and Sustained Management AttentionGAO-21-225T: Published: Dec 2, 2020. Publicly Released: Dec 2, 2020.
Nov 20, 2020
-
GAO Audits Involving DOD:
Status of Efforts to Schedule and Hold Timely Entrance ConferencesGAO-21-185R: Published: Nov 20, 2020. Publicly Released: Nov 20, 2020.
Nov 19, 2020
-
Defense Acquisitions:
Joint Cyber Warfighting Architecture Would Benefit from Defined Goals and GovernanceGAO-21-68: Published: Nov 19, 2020. Publicly Released: Nov 19, 2020.
Looking for more? Browse all our products here