The Department of Defense has incomplete public-private
funding data and lacks a plan to ensure compliance with
private sector allocation limits, the Government
Accountability Office has said.
It cited, “recurring weaknesses in DoD’s data gathering,
reporting processes, and financial systems,” that
prevented it from determining if the military services
exceeded the 50-percent funding limit on private sector work.
Under 10 US Code 2466, military and defense agencies cannot
contract out more than 50 percent of annual depot-maintenance
funding, and DoD must submit a funding distribution report for
the prior two fiscal years as well as one for the current and
future four years, said GAO.
It said the “prior-years” reports for each service contained
errors that when corrected move private sector funding close
to the 50-percent limit — for example, the Navy left out $410
million in private-sector fleet maintenance contracts that
bring its private sector funding level to 47.9 percent from
44.5 percent.
Reporting errors and omissions have carried over from prior years,
which has made DoD
