Current Government Profit and Cost Policies and Their Adverse Impact on Defense Contractors

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Publisher :
ISBN 13 :
Total Pages : 24 pages
Book Rating : 4.:/5 (227 download)

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Book Synopsis Current Government Profit and Cost Policies and Their Adverse Impact on Defense Contractors by : William J Healey (Jr)

Download or read book Current Government Profit and Cost Policies and Their Adverse Impact on Defense Contractors written by William J Healey (Jr) and published by . This book was released on 1987 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: This factual review and commentary first discusses the following profit and cost policies and related developments which, although not necessarily purporting to be all inclusive on the issue, are illustrative of the problem: (1) The Defense Financial and Investment Review (DFAIR); (2) The resulting DOD profit policy regulations; (3) The General Accounting Office reaction to DOD's profit policy; (4) Reductions in progress payments; (5) Limitations on government reimbursement for contractor acquisition of special tooling and special test equipment; (6) Use of firm fixed-price contracting for development work; (7) Forcing contractors to pay up-front development costs; (8) Tightening of the contract cost principles generally; (9) Limitations on contractor employee compensation (both executive compensation and employee salaries and wages); (10) Government demands for a share of pension fund assets on termination of an overfunded defined benefit pension plan; (11) Overhead cost certification requirements; (12) Overhead cost controls; and (13) Spare parts refund policy.

Recent Changes in the Defense Department's Profit Policy--intended Results Not Achieved

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ISBN 13 :
Total Pages : 40 pages
Book Rating : 4.F/5 ( download)

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Book Synopsis Recent Changes in the Defense Department's Profit Policy--intended Results Not Achieved by : United States. General Accounting Office

Download or read book Recent Changes in the Defense Department's Profit Policy--intended Results Not Achieved written by United States. General Accounting Office and published by . This book was released on 1979 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Government Contracting

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Publisher : BiblioGov
ISBN 13 : 9781289132385
Total Pages : 70 pages
Book Rating : 4.1/5 (323 download)

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Book Synopsis Government Contracting by : U. S. Government Accountability Office (

Download or read book Government Contracting written by U. S. Government Accountability Office ( and published by BiblioGov. This book was released on 2013-06 with total page 70 pages. Available in PDF, EPUB and Kindle. Book excerpt: Pursuant to a congressional request, GAO reviewed a consultant's study on the financial and operating impact of selected changes in procurement and tax policies on the defense industry. GAO found that the consultant used financial data from nine defense programs to compare program performance under prior acquisition and tax policies, and the profits and cash flows that would occur if tax law changes, new profit policies, lower progress payment rates, and lower cost recovery rates were in effect when each program began. The consultant reported that policy changes would effectively cause: (1) a 23-percent reduction in profits; (2) additional financing for nine contractors, totalling $8.5 billion; and (3) a low return on investment necessary to preserve shareholder value. GAO found that: (1) the study did not show the level of contractor profitability before or after policy changes or support the impact of the policies on the financial condition of government contractors; (2) the study did not recognize the Department of Defense's new profit policy which compensated contractors for financing contract costs; (3) the consultant's use of accrual data overstated cash outflows and produced incorrect conclusions concerning the return on investment; and (4) adequate data was not available to measure the impact that selected changes in procurement and tax policies had on the defense industry as a whole.

Defense Department Profit and Contract Finance Policies and Their Effects on Contract and Contractor Performance

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Publisher :
ISBN 13 :
Total Pages : 76 pages
Book Rating : 4.:/5 (318 download)

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Book Synopsis Defense Department Profit and Contract Finance Policies and Their Effects on Contract and Contractor Performance by :

Download or read book Defense Department Profit and Contract Finance Policies and Their Effects on Contract and Contractor Performance written by and published by . This book was released on 2008 with total page 76 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Defense Department, through the military services, buys equipment and services for which no open market exists. In negotiating the contracts for these acquisitions, the government has policy guidelines to aid the contracting officer in developing a reasonable amount of profit to pay the contractor. The goal of profit policy is a contract price that reimburses the contractor for its costs, provides the necessary incentives to yield beneficial performance, and to provide the contractor with sufficient risk reward. The effect of profit policy on contractor profits is inextricably linked to the type of contract financing policy the government uses in an acquisition. The authors examine the effectiveness of these two policy tools, profit and contract financing, on achieving contract outcomes and contractor financial performance. They also look at how these policies are implemented by the Defense Department. Their methodologies include analyses of profit target setting and actual contract results data in addition to discounted cash flow modeling to value a contract or contract stream to an investor. This study as a whole is concerned with two questions about profit policy. First, in what ways does profit policy provide incentives or disincentives with respect to cost growth, schedule slips, and the performance features of a system eventually provided to the Department of Defense? Specifically, the authors are interested in whether or not profit policy can be reliably manipulated to encourage desirable outcomes on particular contracts. Second, does profit policy provide defense contractors with a profit that is large enough to retain these firms in the defense industry? Each of these questions presents several distinct issues which IDA approached using different methods and data.

Government Contracting: Using Cost of Capital to Assess Profitability

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Publisher :
ISBN 13 :
Total Pages : 28 pages
Book Rating : 4.:/5 (227 download)

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Book Synopsis Government Contracting: Using Cost of Capital to Assess Profitability by :

Download or read book Government Contracting: Using Cost of Capital to Assess Profitability written by and published by . This book was released on 1991 with total page 28 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Defense's (DOD) policies must provide adequate support for the long-term needs of the defense industrial base. Traditionally, the financial impact of U.S. government policies on defense contractor profitability has been measured by comparing defense contractor's profitability with that of various groupings of non-defense durable goods manufacturers. Defense contractors have objected to this comparison, arguing that it does not accurately accommodate the differing levels of risk. The Co-Chair of the Congressional Military Reform Caucus asked GAO to (1) evaluate the effectiveness of the government's current method of assessing contractor's profitability levels and (2) identify other methods that might better identify appropriate levels of defense contractor's profitability. The Congress has required DOD to report annually on the financial health of the defense industrial base.

Government Contracting: Compensation of Defense Contractors' Working Capital Financing Costs

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Publisher :
ISBN 13 :
Total Pages : 30 pages
Book Rating : 4.:/5 (227 download)

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Book Synopsis Government Contracting: Compensation of Defense Contractors' Working Capital Financing Costs by :

Download or read book Government Contracting: Compensation of Defense Contractors' Working Capital Financing Costs written by and published by . This book was released on 1990 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: DOD'S profit policy includes a provision to recognize the millions of dollars defense contractors incur annually in financing working capital costs on fixed-price contracts. Working capital costs consist of the contractor's work in process costs-material, labor, and overhead that are not financed through progress payments' or other payments. In negotiating contract prices, DOD does not attempt to prepare an exact calculation of such costs, but instead tries to give general recognition to the contractor's working capital costs under varying contract circumstances, financing policies, and economic environments. If DOD'S policy does not appropriately consider a contractor's working capital financing costs, it could affect contract profits, either to the contractor's or the government's disadvantage. DOD'S policy generally recognizes the important factors that affect contractors' working capital financing costs. Our analysis of a sample of contracts showed that in the aggregate the policy resulted in approximately the right amount of these financing costs being included in the profit objective. That is, the costs likely to be incurred during the life of the contract were close to the amounts estimated by DOD. While this was true in the aggregate, there were differences of 10 percent or more in most of the individual contracts between DOD'S estimate and our estimate of working capital costs. On individual contracts, therefore, if contracting officers do not adjust for the specific circumstances of that contract, too much or too little profit could be included in the contract price.

Defense Contracting

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Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (234 download)

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Book Synopsis Defense Contracting by : United States. Government Accountability Office

Download or read book Defense Contracting written by United States. Government Accountability Office and published by . This book was released on 2008 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

American Technology Preeminence Act

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Publisher :
ISBN 13 :
Total Pages : 844 pages
Book Rating : 4.0/5 ( download)

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Book Synopsis American Technology Preeminence Act by : United States. Congress. House. Committee on Science, Space, and Technology. Subcommittee on Technology and Competitiveness

Download or read book American Technology Preeminence Act written by United States. Congress. House. Committee on Science, Space, and Technology. Subcommittee on Technology and Competitiveness and published by . This book was released on 1991 with total page 844 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Defense Contractors' Profit Review

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Publisher :
ISBN 13 :
Total Pages : 108 pages
Book Rating : 4.3/5 (121 download)

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Book Synopsis Defense Contractors' Profit Review by : United States. Congress. House. Committee on Government Operations. Legislation and National Security Subcommittee

Download or read book Defense Contractors' Profit Review written by United States. Congress. House. Committee on Government Operations. Legislation and National Security Subcommittee and published by . This book was released on 1986 with total page 108 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Review of the Defense Department's Profit Policy for Noncompetitive Contracts

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Publisher :
ISBN 13 :
Total Pages : 224 pages
Book Rating : 4.3/5 (121 download)

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Book Synopsis Review of the Defense Department's Profit Policy for Noncompetitive Contracts by : United States. Congress. House. Committee on Government Operations. Legislation and National Security Subcommittee

Download or read book Review of the Defense Department's Profit Policy for Noncompetitive Contracts written by United States. Congress. House. Committee on Government Operations. Legislation and National Security Subcommittee and published by . This book was released on 1987 with total page 224 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Model Rules of Professional Conduct

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Publisher : American Bar Association
ISBN 13 : 9781590318737
Total Pages : 216 pages
Book Rating : 4.3/5 (187 download)

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Book Synopsis Model Rules of Professional Conduct by : American Bar Association. House of Delegates

Download or read book Model Rules of Professional Conduct written by American Bar Association. House of Delegates and published by American Bar Association. This book was released on 2007 with total page 216 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Model Rules of Professional Conduct provides an up-to-date resource for information on legal ethics. Federal, state and local courts in all jurisdictions look to the Rules for guidance in solving lawyer malpractice cases, disciplinary actions, disqualification issues, sanctions questions and much more. In this volume, black-letter Rules of Professional Conduct are followed by numbered Comments that explain each Rule's purpose and provide suggestions for its practical application. The Rules will help you identify proper conduct in a variety of given situations, review those instances where discretionary action is possible, and define the nature of the relationship between you and your clients, colleagues and the courts.

Technical Reports Awareness Circular : TRAC.

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ISBN 13 :
Total Pages : 534 pages
Book Rating : 4.E/5 ( download)

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Book Synopsis Technical Reports Awareness Circular : TRAC. by :

Download or read book Technical Reports Awareness Circular : TRAC. written by and published by . This book was released on 1988-07 with total page 534 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Standards of Ethical Conduct for Employees of the Executive Branch

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Publisher :
ISBN 13 :
Total Pages : 0 pages
Book Rating : 4.:/5 (18 download)

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Book Synopsis Standards of Ethical Conduct for Employees of the Executive Branch by : United States. Office of Government Ethics

Download or read book Standards of Ethical Conduct for Employees of the Executive Branch written by United States. Office of Government Ethics and published by . This book was released on 1992 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Vinson-Trammell Act of 1934 and the Necessity for Profit Limitations on Defense Contracts in the Current Contracting Environment

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Publisher :
ISBN 13 :
Total Pages : 364 pages
Book Rating : 4.0/5 (18 download)

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Book Synopsis Vinson-Trammell Act of 1934 and the Necessity for Profit Limitations on Defense Contracts in the Current Contracting Environment by : United States. Congress. House. Committee on Armed Services. Procurement and Military Nuclear Systems Subcommittee

Download or read book Vinson-Trammell Act of 1934 and the Necessity for Profit Limitations on Defense Contracts in the Current Contracting Environment written by United States. Congress. House. Committee on Armed Services. Procurement and Military Nuclear Systems Subcommittee and published by . This book was released on 1981 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Public War, Private Fight? The United States and Private Military Companies

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Publisher : Lulu.com
ISBN 13 : 1257122355
Total Pages : 90 pages
Book Rating : 4.2/5 (571 download)

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Book Synopsis Public War, Private Fight? The United States and Private Military Companies by : Deborah C. Kidwell

Download or read book Public War, Private Fight? The United States and Private Military Companies written by Deborah C. Kidwell and published by Lulu.com. This book was released on 2011-03-25 with total page 90 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The United States has long utilized private military contractors to augment regular military forces in support of its national foreign policy and security needs. Commonly referred to as Private Military Companies (PMCs), contractors employ and manage civilian personnel from the private sector in areas of active military operations. Frequently, regular troops become dependent on the services contractors provide a situation that may negatively impact military effectiveness. Since 1991, contractor support on and off the battlefield has become increasingly more visible, varied, and commonplace. Given the current manpower and resource limitations of the national military, the US will likely continue its extensive use of PMCs in support of military operations. This work addresses historical precedents and trends in American logistics, the current scope of contractor involvement in support of regular military forces, and the challenges posed as traditional military institutions integrate increasing numbers of civilian workers and privately owned assets into the battlespace. These problems increase the risk to US personnel and can induce budget overruns rather than savings, disrupt civil-military relations, and have detrimental consequences for the American economy and society. The work concludes by proposing a useful rubric to evaluate this new American way of war. This work considers PMCs and their interdependence with regular and reserve military units in a broad sense. It derives from unclassified material widely available; understandably, these sources limit the analysis. Lessons learned from the Operation IRAQI FREEDOM (OIF) and Operation ENDURING FREEDOM (OEF) theaters may alter findings. However, this study endeavors to frame the continuing dialog concerning the appropriate use of PMCs to support regular troops."--Abstract from DTIC web site.

Federal Contract Compliance Manual

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ISBN 13 :
Total Pages : 1110 pages
Book Rating : 4.3/5 ( download)

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Book Synopsis Federal Contract Compliance Manual by : United States. Office of Federal Contract Compliance Programs

Download or read book Federal Contract Compliance Manual written by United States. Office of Federal Contract Compliance Programs and published by . This book was released on 1990 with total page 1110 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Administration & Management

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Publisher :
ISBN 13 :
Total Pages : 136 pages
Book Rating : 4.3/5 ( download)

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Book Synopsis Administration & Management by :

Download or read book Administration & Management written by and published by . This book was released on 1988 with total page 136 pages. Available in PDF, EPUB and Kindle. Book excerpt: