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Highlights

GAO reviewed the Department of Defense's (DOD) administration of its warranty program for 48 weapons system contracts, focusing on the extent to which the military services: (1) had effective warranty administration systems; and (2) performed DOD- and service-required cost-effectiveness analyses.

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Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense 1. The Secretary of Defense should expand his oversight role in warranty administration by establishing milestones for the services to meet in implementing effective warranty administrative systems or making changes to correct deficiencies in present systems. Periodic progress reports on achievements and problems being experienced should be required from the services.
Closed - Not Implemented
According to the DOD Inspector General (IG), the services have not been responsive to the recommendation. As a result, no further action is planned to respond to the recommendation. A letter will be sent to GAO within 60 days, closing out the case.
Department of Defense 2. The Secretary of Defense, as part of the oversight role, should ensure that the services consider the use of waivers as viable options when it can be shown that a warranty is not cost-effective.
Closed - Not Implemented
According to the DOD/IG, the services have not been responsive to the recommendation. As a result, no further action is planned to respond to the recommendation. A letter will be sent to GAO within 60 days, closing out the case.

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