Contract Management: New Authority for Severable Service Contracts

Pursuant to a legislative requirement, GAO reviewed the Department of Defense's (DOD) authority to award severable service contracts in fiscal years 1998 and 1999 under section 801 of the National Defense Authorization Act for Fiscal Year 1998, focusing on: (1) the extent to which DOD used the authority in the last month of the fiscal year; and (2) whether contracts reportedly valued at about $1 million or more and whose work was performed entirely in the following fiscal year were abuses of section 801.