GAO's Review of Contractor Cost Estimating Systems
T-NSIAD-87-25: Published: Apr 8, 1987. Publicly Released: Apr 8, 1987.
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GAO discussed its evaluation of defense contractor cost-estimating systems to determine whether defense contractors were developing and proposing accurate and reliable estimates for negotiating Department of Defense (DOD) contracts. GAO noted that, although DOD relies on price proposals that contractors' estimating systems generate, there is no requirement for contractors to maintain adequate systems. GAO found that, of 247 contractors it questioned: (1) 32 did not have written estimating policies and procedures; (2) 67 of those with policies and procedures had inadequate procedures for selecting methods and techniques to calculate estimates; (3) 72 had inadequate procedures for documenting the rationale and support for estimating judgments; and (4) 33 had inadequate procedures to review cost estimates for completeness, accuracy, and compliance with company policy. GAO also found that contractors frequently did not: (1) provide accurate evaluation results to contracting officers; (2) evaluate major subcontracts before prime contract negotiations; and (3) adjust proposed vendor quotations to reflect reductions or disclose information on past reductions to contracting officers. GAO believes that the Federal Acquisition Regulation amendments that the Air Force and the Defense Contract Audit Agency proposed to establish contractor requirements would be a starting point towards defining an acceptable estimating system.
Jan 14, 2021
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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
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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
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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
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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
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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
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Defense Acquisitions:
Joint Cyber Warfighting Architecture Would Benefit from Defined Goals and GovernanceGAO-21-68: Published: Nov 19, 2020. Publicly Released: Nov 19, 2020. -
Defense Intelligence:
Comprehensive Plan Needed to Improve Stakeholder Engagement in the Development of New Military Intelligence SystemGAO-21-57: Published: Nov 19, 2020. Publicly Released: Nov 19, 2020. -
Defense Production Act:
Opportunities Exist to Increase Transparency and Identify Future Actions to Mitigate Medical Supply Chain Issues:GAO-21-108: Published: Nov 19, 2020. Publicly Released: Nov 19, 2020.
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