Accession Number : ADA307065

Title :   Defense Contractor Restructuring: First Application of Cost and Savings Regulations.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC NATIONAL SECURITY AND INTERNATIONAL A FFAIRS DIV

PDF Url : ADA307065

Report Date : APR 1996

Pagination or Media Count : 10

Abstract : Section 818 of the National Defense Authorization Act for Fiscal Year 1995 (P.L. 103-337) restricts Department of Defense (DOD) payments to contractors for costs associated with business combinations. Specifically, it prohibits the payment of restructuring costs, such as those associated with closing facilities and eliminating jobs, until a senior DOD official certifies that projected savings from the restructuring are based on audited data and should result in overall reduced costs to DOD. In response to section 818 requirements, DOD issued interim regulations on restructuring costs effective December 29,1994.

Descriptors :   *COST ANALYSIS, *CONTRACTORS, *DEFENSE INDUSTRY, *REGULATIONS, *SAVINGS, *ACCOUNTABILITY, DEPARTMENT OF DEFENSE, MILITARY FACILITIES, COMMERCE, GOVERNMENT PROCUREMENT, ACCOUNTING, PERSONNEL MANAGEMENT, REDUCTION, COMBAT VEHICLES, REDUNDANCY, BASE CLOSURES, NATIONAL DEFENSE, FACTOR ANALYSIS, AUDITING, MILITARY DOWNSIZING.

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Logistics, Military Facilities and Supplies

Distribution Statement : APPROVED FOR PUBLIC RELEASE