Consulting Services: Role and Use in Acquiring Three Weapon Systems

Highlights

Pursuant to a congressional request, GAO reviewed the Department of Defense's (DOD) use of consulting services in acquiring three weapon systems, focusing on: (1) how DOD contractors used consultants; and (2) whether consultants worked for both the government and defense contractors on weapon systems and, if so, whether any conflicts of interest existed.

Recommendations

Recommendations for Executive Action

Agency Affected	Recommendation	Status
Department of Defense	To improve DOD identification and reporting of contracted assistance and advisory services (CAAS), the Secretary of Defense should review and clarify existing guidance on CAAS to preclude differing interpretations among the military services.	Closed – Implemented DOD concurred with the recommendation and is implementing Office of Federal Procurement Policy letter 89-1. Action was expected to be completed in late 1991. Action is now expected sometime in 1992. DOD Directive 4205.2 was issued February 10, 1992. The directive clarifies guidance.
Department of Defense	To improve DOD identification and reporting of CAAS, the Secretary of Defense should direct DOD and component CAAS directors to strengthen their review procedures to ensure that the services accurately report CAAS budget data.	Closed – Implemented DOD agreed with the recommendation and is implementing the CAAS management plan. Comments on the revised CAAS directive were due in October 1991. This date was extended to March 1992. Action is pending. DOD Directive 4205.2 was issued February 10, 1992. The directive clarifies roles, procedures, and internal controls.
Department of Defense	To improve DOD identification and reporting of CAAS, the Secretary of Defense should direct the Secretaries of the Army, Navy, and Air Force to review and, where necessary, develop or revise component instructions and procedures to ensure that CAAS are accurately identified and entered into the accounting systems.	Closed – Implemented The action plan for CAAS was approved in July 1990. The implementation plan was to be completed at the end of 1991. Approval was delayed. Action is pending. Directive 4205.2 requires that CARS are accurately identified and entered into the accounting system.

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National Defense

Weapons systemsConflict of interestsexecutive relationsConsultantsDepartment of Defense contractorsMilitary procurementReporting requirementsMilitary forcesRailEngineering