Government Contracting: A Proposal for a Program to Study the Profitability of Government Contractors : Report to the Congress

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GAO proposed legislation to study the profitability of government contractors and: (1) require major government contractors to annually report financial results to an official designated by the President; (2) define criteria for determining which companies will be subject to reporting requirements; and (3) create a Department of Defense (DOD) Profit Reporting Program. GAO believes the program should require: (1) a consistent methodology to evaluate profitability; (2) a means to establish the reliability of contractor-furnished data; and (3) mandatory contractor participation. GAO found that contractors and agencies remain opposed to the program because they believe that: (1) DOD ad hoc studies of contractor profitability would be adequate; (2) the costs of the study would outweigh the benefits; and (3) the government could not adequately protect proprietary information.

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Page 13 - But if the Executive is in need of additional laws by which to protect the nation against war profiteering, the Constitution has given to Congress, not to this Court, the power to make them.
Page 22 - Office of Federal Procurement Policy within the Office of Management and Budget, and for other purposes.
Page 45 - ... and position of US corporations. Based upon an extensive sample survey, the QFR presents each calendar quarter estimated statements of income and retained earnings, balance sheets, and related financial and operating ratios for all manufacturing corporations and (since the third quarter of 1974) for mining and trade corporations. The statistical data are classified by industry and (for manufacturing) by asset size. Pertinent data are also provided when possible on material distortions in comparability...
Page 27 - ... rendered. Ideally, the principal product or service should be determined by reference to value added.
Page 36 - Longshoremen's and Harbor Workers' Compensation Act As Amended, 1972 An Act To provide compensation for disability or death resulting from injury to employees in certain maritime employment, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SHORT TITLE SEC. 1. This Act may be cited as "Longshoremen's and Harbor Workers
Page 8 - ... Profitability of Government Contractors (GAO/NSIAD-87-1 75, Sept. 1987). future, correct the current situation and would provide on an aggregated basis, levels of profitability being obtained under existing policies. There is a long history of concern about profits earned on government contracts. Contract prices should allow contractors to recover their costs and provide a reasonable profit to compensate for investment, risk, and effort. However, concern with excessive profits has periodically...
Page 3 - Contracting; A Proposal for a Program to Study the Profitability of Government Contractors (GAO/NSIAD-87-175 , Sept.
Page 2 - ... DOD the management information needed for effective decisions. Such management information must be based on accurate and current data, and consistent and appropriate analysis. In September 1987, we proposed a legislative action to establish a program to report contractor profitability. The program would require: --a consistent and appropriate analytical methodology to evaluate profitability, — a means for systematically establishing the integrity of the studies and the reliability of contractor-furnished...
Page 22 - ... estimates are for the year 1968. They are included as additional information for describing the general characteristics of metropolitan areas in the United States. These data were developed and copyrighted by Sales Management, Incorporated. They are based on projections of data developed or obtained by the Bureau of the Census, Bureau of Labor Statistics, and the Bureau of Agricultural Economics. Per capita income and per household income are income per individual or household after deduction...
Page 9 - Committee in conjunction with the submission of the 5-year defense program. The act recognizes that DOD policies must be adequately integrated to: (1) stimulate efficient contract performance; (2) not discourage companies from seeking government business; and (3) promote investment to enhance productivity and provide for a sound and viable industrial base. DOD's 1985 Defense Financial and Investment Review, last year's...

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