DOD Competitive Sourcing: Savings Are Occurring, but Actions Are Needed to Improve Accuracy of Savings Estimates
NSIAD-00-107
Published: Aug 08, 2000. Publicly Released: Aug 08, 2000.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) competitive sourcing activities, focusing on: (1) the extent to which actual savings have been achieved or can be expected as a result of competitions; and (2) DOD's efforts to improve processes for identifying and tracking changes to cost and savings estimates.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status Sort descending |
|---|---|---|
| Department of Defense | To improve the precision of savings estimates resulting from A-76 studies, the Secretary of Defense should: (1) develop an appropriate mechanism for assessing changes in A-76 savings in a systematic manner and require components to use data obtained in tracking the implementation of A-76 study results to update initial savings and projected savings estimates during the annual budget process; and (2) study the potential to use a costing methodology as an interim measure to provide a better estimation of baseline and other costs used to estimate savings from A-76 studies. |
Closed – Implemented
The Office of The Secretary of Defense's Competitive Sourcing and Privatization Office is in the process of updating and converting its current Commercial Activities Management Information System into a web-based system. This system is scheduled to be fielded by approximately November 2002. This system is being updated to include data elements that will allow DOD to assess changes in A-76 savings for each individual competition, and track the implementation of the study results. Currently, the Marine Corps is using activity-based costing when conducting its A-76 competitions.
|
Full Report
Office of Public Affairs
Topics
Comparative analysisContract costsDefense cost controlDefense procurementDepartment of Defense contractorsFuture budget projectionsManagement information systemsMilitary downsizingPerformance measuresPrivatization