Defense acquisitions
Subtitle: additional guidance needed to improve visibility into the structure and management of major weapon system subcontracts
By: [Cristina T. Chaplain]
Contributors: United States. Government Accountability Office
Publisher: U.S. Govt. Accountability Office
Published: 2010
Place of publication: Washington, DC
Language: eng
Format: [electronic resource] :
Number of pages: 66
Subjects: Procurement; Evaluation; Defense contracts; Management; Government contractors; Subcontracting; Public contracts; United States. Department of Defense; United States
Other titles: Additional guidance needed to improve visibility into the structure and management of major weapon system subcontracts; Subcontract structure and management
Notes: Title from p.1 screen (GAO, viewed Nov. 14, 2010).

"October 28, 2010."

According to some Department of Defense (DOD) and industry experts, consolidation of the defense industry along with a shift in prime-contractor business models has resulted in prime contractors subcontracting more work on the production of weapon systems and concentrating instead on systems integration. Based on some estimates, 60 to 70 percent of work on defense contracts is now done by subcontractors, with certain industries aiming to outsource up to 80 percent of the work. At the same time, there is evidence that subcontractor performance may contribute to cost and schedule delays on weapon system programs. Congress has raised questions about the extent to which primes are awarding subcontracts competitively and about the government's insight into the process prime contractors use for determining what work to make in-house and what work should be bought from subcontractors (make-or-buy decisions). The 2010 National Defense Authorization Act4 required us to study the structure and management of major subcontracts under contracts for the acquisition of selected major weapon systems. In response to this mandate and given the reliance on subcontracts and the possible implications for government oversight, we (1) examined how government and prime contractors defined 'major' subcontract, and the number and value of those considered major, (2) analyzed prime contractors' approach to selecting and managing major subcontractors, (3) examined the extent to which the government has visibility into major subcontracts and, finally, (4) examined how potential OCIs are addressed and the government's role in selecting the approach chosen.

"GAO-11-61R."

Includes bibliographical references.

System requirements: Adobe Reader.

Mode of access: World Wide Web.