Cost Accounting Standard 414: How DOD's (Department of Defense's) Budget Profit Policy and Contractors' Investments Relate to Standard 414

摘要

The report reviews the relationship of Cost Accounting Standard (CAS) 414, 'Cost of Money as an Element of the Cost of Facilities Capital', to the Department of Defense's (DOD) budget request and contractor profit. Also reviewed was the uncertainty surrounding the level of funds associated in the procurement process with CAS 414. The objectives were to determine how the Army, Air Force, and Navy treat these funds in their budgeting process and assess the practicality of identifying these funds in each service's budget request; identify the amount of funds negotiated by each service for cost of money and profit on facilities capital employed; and identify the contractors with whom each service negotiated the largest amounts of these funds and visit some of them to obtain information on the cost of money received, amount of money expended for capital investments, and investments made and their cost reducing or productivity enhancing functions.