Overhead Costs:

Unallowable and Questionable Costs Charged by McDonnell Douglas Corporation

T-NSIAD-94-60: Published: Oct 13, 1993. Publicly Released: Oct 13, 1993.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed a Department of Defense contractor's inclusion of unallowable and questionable costs in its overhead cost submissions. GAO noted that: (1) of the $2.3 million in overhead costs the contractor submitted for payment, $1.6 million were unallowable or questionable; (2) unallowable or questionable costs included costs for alcoholic beverages, entertainment, meals, employee relations, professional public relations services, and other unallowable charges; (3) the costractor's cost for distributing a corporate videotape was unreasonably high; (4) the actual amount of unallowable or questionable costs depends on the amount of defense versus commercial business performed and type of government contract; and (5) the contractor's inclusion of unallowable or questionable costs in its overhead costs submissions was primarily due to weak internal controls and its interpretation of federal procurement regulations.

Apr 18, 2018

Apr 17, 2018

Apr 16, 2018

Apr 11, 2018

Mar 29, 2018

Mar 27, 2018

Mar 13, 2018

Feb 28, 2018

Looking for more? Browse all our products here