Defense Contracting: DoD has Enhanced Insight into Undefinitized Contract Action Use, but Management at Local Commands Needs Improvement PDF Download

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Publisher: DIANE Publishing
ISBN: 1437928498
Category :
Languages : en
Pages : 50

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Publisher:
ISBN:
Category :
Languages : en
Pages : 51

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To meet urgent needs, DoD can issue undefinitized contract actions (UCA), which authorize contractors to begin work before reaching a final agreement on contract terms. Such actions are considered to be a risky contract vehicle for the government because contractors lack incentives to control costs during this period. Defense regulations provide that the government determination of contractors' allowable profit or fee should reflect any reduced cost risk. Pursuant to the 2008 National Defense Authorization Act, GAO assessed whether DoD actions taken as required by the act have accomplished the following: (1) improved departmental insight and oversight of UCA use; and (2) resulted in local commands meeting DoD's standards for documenting the basis for negotiating the contractor profit or fee, definitization timelines, and obligation amounts. GAO reviewed relevant DoD regulations and policies and contract files for 83 randomly-selected UCAs totaling $6.1 billion at eight local commands. The findings from this contract file review cannot be generalized across DoD. GAO recommends that the Secretary of Defense revise defense regulations to provide specific guidance for how to develop, consider, and document assessments of cost risk for profit or fee for all undefinitized contract actions. In written comments, DoD agreed with the recommendations.

Author: U.s. Government Accountability Office
Publisher: Createspace Independent Publishing Platform
ISBN: 9781974439751
Category :
Languages : en
Pages : 50

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Book Description
To meet urgent needs, DOD can issue undefinitized contract actions (UCA), which authorize contractors to begin work before reaching a final agreement on contract terms. Such actions are considered to be a risky contract vehicle for the government because contractors lack incentives to control costs during this period. Defense regulations provide that the government determination of contractors allowable profit or fee should reflect any reduced cost risk.Pursuant to the 2008 National Defense Authorization Act, GAO assessed whether DOD actions taken as required by the act have (1) improved departmental insight and oversight of UCA use and (2) resulted in local commands meeting DODs standards for documenting the basis for negotiating the contractor profit or fee, definitization timelines, and obligation amounts. GAO reviewed relevant DOD regulations and policies, and contract files for 83 randomly-selected UCAs totaling $6.1 billion at eight local commands. The findings from this contract file review can not be generalized across DOD.

Author: United States. Government Accountability Office
Publisher:
ISBN:
Category : Defense contracts
Languages : en
Pages : 45

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Book Description
To meet urgent needs, DOD can issue undefinitized contract actions (UCA), which authorize contractors to begin work before reaching a final agreement on contract terms. Such actions are considered to be a risky contract vehicle for the government because contractors lack incentives to control costs during this period. Defense regulations provide that the government determination of contractors' allowable profit or fee should reflect any reduced cost risk. Pursuant to the 2008 National Defense Authorization Act, GAO assessed whether DOD actions taken as required by the act have (1) improved departmental insight and oversight of UCA use and (2) resulted in local commands meeting DOD's standards for documenting the basis for negotiating the contractor profit or fee, definitization timelines, and obligation amounts. GAO reviewed relevant DOD regulations and policies, and contract files for 83 randomly-selected UCAs totaling $6.1 billion at eight local commands. The findings from this contract file review can not be generalized across DOD. GAO recommends that the Secretary of Defense revise defense regulations to provide specific guidance for how to develop, consider, and document assessments of cost risk for profit or fee for all undefinitized contract actions. In written comments, DOD agreed with the recommendations.

Author: United States Government Accountability Office
Publisher: Createspace Independent Publishing Platform
ISBN: 9781976368127
Category :
Languages : en
Pages : 38

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Book Description
To meet urgent needs, the Department of Defense (DOD) can issue undefinitized contract actions (UCA), which authorize contractors to begin work before reaching a final agreement on contract terms. The contractor has little incentive to control costs during this period, creating a potential for wasted taxpayer dollars. Pursuant to the House of Representatives report on the National Defense Authorization Act for Fiscal Year 2007, we assessed (1) the level of insight DOD has into its use of UCAs, (2) how and when DOD is using UCAs, (3) whether DOD is definitizing UCAs in a timely fashion, and (4) whether contracting officers are documenting the basis for negotiated profit or fee. GAO reviewed 77 randomly-selected contracts at seven locations and interviewed DOD officials.

Author:
Publisher: DIANE Publishing
ISBN: 9781422396292
Category :
Languages : en
Pages : 36

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Book Description

Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 38

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Book Description
To meet urgent needs, the Department of Defense (DOD) can issue undefinitized contract actions (UCA), which authorize contractors to begin work before reaching a final agreement on contract terms. The contractor has little incentive to control costs during this period, creating a potential for wasted taxpayer dollars. Pursuant to the House of Representatives report on the National Defense Authorization Act for Fiscal Year 2007, we assessed (1) the level of insight DOD has into its use of UCAs, (2) how and when DOD is using UCAs, (3) whether DOD is definitizing UCAs in a timely fashion, and (4) whether contracting officers are documenting the basis for negotiated profit or fee. GAO reviewed 77 randomly-selected contracts at seven locations and interviewed DOD officials.

Author:
Publisher: DIANE Publishing
ISBN: 9781422396346
Category :
Languages : en
Pages : 54

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Author: William M. Solis
Publisher: DIANE Publishing
ISBN: 1437935745
Category : Technology & Engineering
Languages : en
Pages : 26

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For decades, the DoD has relied on contractors to support contingency operations and recognizes them as part of the total force. In Iraq and Afghanistan contractor personnel now outnumber deployed troops. In Iraq more than 95,000 DoD contractors support 92,000 troops, and in Afghanistan more than 112,000 DoD contractors support approx. 94,000 troops. DoD anticipates that the number of contractors will grow in Afghanistan as the dept. increases its troop presence in that country. Several long-standing challenges have hindered DoD¿s ability to manage and oversee contractors at deployed locations. This testimony addresses the extent to which DoD has institutionalized operational contract support. Illustrations.

Author: U.s. Government Accountability Office
Publisher:
ISBN: 9781974239122
Category :
Languages : en
Pages : 40

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"Why GAO Did This StudyDOD spends billions annually to maintain its weapon systems and, at times, uses long-term maintenance contracts with a potential period of performance of 5 years or more. These contracts can encourage contractors to invest in new facilities, equipment, and processes, but may hinder DOD's ability to incentivize contractors' performance and control costs, especially in the absence of a competitive environment or if DOD does not acquire access to technical data that can enable DOD to select an alternative maintenance provider.GAO was asked to evaluate (1) the extent to which DOD uses long-term maintenance contracts, (2) DOD's ability to select alternative maintenance providers, and (3) how these contracts have been structured to incentivize performance and manage cost. GAO reviewed a nongeneralizable sample of 10 long-term contracts to illustrate different maintenance approaches. GAO interviewed program officials and reviewed contract documentation. GAO also reviewed information on eight programs recently reviewed by DOD to determine how these programs addressed technical data needs.What GAO RecommendsGAO recommends that DOD collect information on the extent to which DOD uses long-term maintenance contracts and develop lessons learned regarding the use of incentives and cost-control tools. DOD concurred with each of the recommendations and"