Pursuant to a congressional request, GAO reviewed the Department of
Defense's (DOD) proposal to convert two Navy activities from
industrial funding to another funding method, focusing on the: (1)
rationale and justification for the conversion; (2) the
conversion's impacts on employment and operations; and (3)
additional costs and savings involved in the conversion. GAO found
that: (1) the DOD proposal offered various alternative funding
methods for the Navy research and engineering activities; (2) DOD
did not perform an analysis to support its belief that industrial
fund systems had higher operational costs, provided only minimal
benefits from financing these types of activities, and made
congressional oversight of funds difficult; (3) DOD stated that the
activities would not meet its revised criteria for industrial
funding; (4) the Navy did not agree with the conversion proposal,
citing its adverse effects on employment, operations, and costs;
(5) the activities estimated that the conversion would cost between
$34.9 million and $37.9 million; and (6) the conversion would incur
additional costs relating to modifying the Standard Automated
Financial System, which the Navy uses for its industrial fund
Is the information for this product incomplete, wrong or inappropriate?
Let us know about it.
Does this product have an incorrect or missing image?
Send us a new image.
Is this product missing categories?
Add more categories.
Review This Product
No reviews yet - be the first to create one!