Contract Pricing: Defense Contractor Contributions to the Software Productivity Consortium
NSIAD-89-74
Published: Jul 24, 1989. Publicly Released: Jul 24, 1989.
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Highlights
Pursuant to a congressional request, GAO reviewed selected defense contractors' classification of independent research and development (IR&D) expenses, focusing on whether the contractors could classify an industry consortium's activities and member companies' contributions as IR&D expenses.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct DOD personnel to determine whether: (1) the Software Productivity Consortium's actual activities meet the Federal Acquisition Regulation criteria for IR&D or manufacturing and production engineering; and (2) member companies have properly classified their contributions to the consortium. |
The Defense Contract Audit Agency (DCAA) conducted a nationwide review of the consortium and, using DOD technical assistance, categorized the consortium's efforts as IR&D on manufacturing and production engineering. An accomplishment report is not warranted.
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Topics
SoftwareContract costsDefense procurementDepartment of Defense contractorsFinancial managementOverhead costsProduction engineeringResearch and development contractsResearch and development costsNational security