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Environmental Cleanup: Observations on Consistency of Reimbursements to DOD Contractors

NSIAD-93-77 Published: Oct 22, 1992. Publicly Released: Oct 28, 1992.
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Highlights

Pursuant to a congressional request, GAO provided information on the Department of Defense's (DOD) reimbursement of defense contractors' environmental clean-up costs.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should direct the Under Secretary of Defense for Acquisition to expand the guidance currently being considered by DOD to include the varied types of reimbursements encountered in the claims from its contractors.
Closed – Not Implemented
DOD agreed that the draft environmental cost principle should be published as a proposed rule when the moratorium on issuing regulations is lifted. DOD believed, however, that the policy questions raised by GAO would be adequately addressed by the new cost principle, working in combination with existing procurement regulations. In late 1994, DOD stated that no action could be taken pending completion of congressional decision on proposed legislation. As of August 1995, DOD had not taken further action toward establishing the environmental cost principle. Although GAO closed this recommendation, ongoing audits continue to address environmental cleanup and cost issues.

Full Report

Full Report (38 pages)

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Topics

National Defense
Claims settlementContractor paymentsContractor violationsDepartment of Defense contractorsEnvironmental monitoringExpense claimsManagement and operating contractsPollution controlSubcontractorsEnvironmental cleanups