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Government Operations: Analysis of Selected Sections of DOD Revised Breakout Regulation

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Report Type Reports and Testimonies
Report Date June 19, 1984
Report No. NSIAD-84-138
Subject
Summary:

Pursuant to a congressional request, GAO reviewed certain parts of the Department of Defense's (DOD) parts breakout regulation to determine whether they inhibit or promote competition. GAO also examined issues associated with DOD breakout efforts. Parts breakout refers to the practice of acquiring a part directly from the manufacturer that is not the prime contractor.

GAO found that DOD has experienced longstanding problems in achieving greater competition through the breakout program. GAO believes that the new breakout regulation must be properly implemented with the necessary commitment and resources to ensure increased competition. In addition, GAO believes that DOD should reassess its definition of the "actual manufacturer" of the part.

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