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Business, Industry, and Consumers: Johnston Atoll Contractor Performance

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Report Type Reports and Testimonies
Report Date Oct. 6, 1995
Report No. NSIAD-96-22R
Subject
Summary:

GAO reviewed the performance of the Johnston Atoll operation and maintenance contractor. GAO noted that: (1) the operation and maintenance contractor's performance rating dropped by about 25 percent between 1987 and 1991; (2) in 1991, the Army encouraged the contractor to improve its performance by offering financial incentives; (3) although the contractor's performance did not significantly improve between 1992 and 1994, it received an additional $5 million in award fees; (4) the contract award fee structure, delays in determining award fees, and ineffective communications resulted in lower than expected performance levels; and (5) although the Army and the contractor are working together to improve facility operations, management improvements could be enhanced if the Army adopted a management team approach called partnering at the facility.

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