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GAO discussed the proposed Defense Industry and Technology Act of 1988, a bill intended to: (1) promote an effective defense acquisition program; and (2) enhance U.S. technological competitiveness. GAO found that the bill would require the Department of Defense (DOD) to: (1) develop an integrated contract finance, investment, profit policy, and risk-sharing plan; (2) limit the use of fixed-price contracts for development efforts; (3) provide program managers and contracting officers with decision-making authority commensurate with their responsibilities; (4) implement an alternative personnel system for the DOD acquisition work force; (5) improve DOD reporting requirements to ensure adequate attention to acquisition reform measures and enhance congressional oversight; (6) coordinate annual audit plans to prevent oversight duplication; and (7) establish an advisory panel consisting of DOD and private industry representatives to study and recommend cooperation between DOD and industry.

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