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Defense Contracting: Key Data Not Routinely Used in Progress Payment Reviews

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Report Type Reports and Testimonies
Report Date Jan. 14, 1992
Report No. NSIAD-92-1
Subject
Summary:

Congress recently expressed concern about excessive progress payments made by the Navy to contractors associated with the A-12 (an advanced-attack aircraft) program. The administrative contracting officers in charge of various contracts GAO reviewed had not routinely used the most timely indications to spot cost overruns and thus were not in the best position to prevent overpayments. As a result of problems with the A-12, the Defense Contract Management Command recently issued guidance requiring the Defense Plant Representative Offices to use this information in quarterly program assessments and in annual progress payment reviews but not as part of monthly reviews of progress payments.

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