Word: dod
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Dates: during 1960-1969
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...DOD can enter these contracts [Fixed Price contracts form the -overwhelming majority] either through a formally advertised competitive process, in which specifications are sent out and sealed bids are received, or through a negotiated process with the contractor. Formally advertised competition represents only 13.4 per cent of the total procurement...
...Joint Economic Committee, headed by Senator Proxmire, also learned that the price estimates the DOD had been accepting with no proof were made without reuquiring the contractors to establish formal cost estimating systems. The DOD's own auditors have pleaded for 10 years to put an end to such guesswork. Contractors ignored them until the GAO started putting on the heat early last year...
Because of the sloppiness and negligence of the pre-award stage, the last safeguard for the Defense Department is a post-audit. The DOD, however, generally neglects to post-audit any of its contracts, and has purposely avoided post-auditing Firm Fixed Price (FFP) contracts. (FFP contracts account for $22 billion in procurement!) In the past DOD failed to post-audit FFP contracts not because it didn't have the authority--the Truth in Negotiations Law gave them the authority--but because there were no internal regulations requiring it. Under intense Congressional pressure, McNamara finally established such regulations last October...
...inherent in a fortress as vast as the Pentagon, especially when it is at war. Warmakers are interested in military results first and bookkeeping second. They are satisfied as long as their contractors are good, prompt, effective suppliers--which defense contractors usually are. Another reason is bureaucratic inertia. The DOD has always conducted business like this...
Incredibly sloppy bookkeeping and lackadaisical enforcement of regulations are solidly entrenched at the Defense Department. The GAO revelations offered a glimpse of the vast waste at the DOD, but only more prolonged and intense publicity can drive off the behemoth...