oversight

Study by the General Accounting Office of Profits Earned by Defense Contractors

Published by the Government Accountability Office on 1971-05-13.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                      COMPTROLLER      GENERAL     OF      THE       UNITED     STATES   _   ,’        16           /?
                                                                                                  c-            d
                                     WASHINGTON.    D.C.         20548                                      /




B-159896




Dear Mr, Mailliard:

     This is in response to your letter         dated April 22, 1971, enclosing
a communication   from a constituent      concerning Mr. Jack Anderson's   news-
paper column entitled   "Further    Details    on the Profits of War."

       Mr. Anderson's     column involved   the premature publication         of infor-
mation relating      to a study by the General Accounting Office of e
earned by defense contractors.          This study was ordered by the Congress
in 1969.     InGr?%%G?'with         our long established     practice,     the draft
report was made available       for review and comment by Government agencies
and others affected      by its contents.       Because of a tight deadline        for
issuing the final      report,  we issued a draft based on preliminary           infor-
mation,,   !I!hus the draft report was incomplete        and the cover as well as
schedules contained therein,        was clearly    marked "for illustrative        pur-
poses only, "

        The comments received          from the Government agencies and contractor
associations        were considered       in drafting our final   report,   but none of
the amounts or ratios           contained in the draft report were changed, nor
was the report softened as a result OF the comments, I am enclosing
copies of a statement I made before the Subcommittee on Legislation                    and
Military      Operations   House Committee on Government Operations            on March 26,
1971, and my letter         to Senator Ernest F. Hollings,        Chairman, Subcommit-
tee on the Legislative           Branch, Senate Cormnittee on Appropriations,         which
cover in more detail          issues raised in Mr. Anderson's        column.    An iden-
tical    letter     to that sent to Senator Hollings        was sent to Congressman
George W. Andrews, Chairman, Subcommittee on Legislation,                  House Commit-
tee on Appropriations,           and both were placed/in      the Congressional    Record.
The final       report was issued to the Congress on March 17, 19'71, and a
copy is enclosed for your information.

       Reports on post retirement    employment of former military     officers
by defense contractors    are required    under Public Law 91-121, section
410 and implementing   Department of Defense directives.        An attached
copy of a letter   by the DOD to defense contractors     explains the
requirements.




                              50TH   ANNIVERSARY                  1921-       1971
      We hope that the above provides   sufficient information    for you to
respond to Mr. Otto E. Bach's letter.     If we can be of further     service
please let us know.

                                        Since ely yours,


                                        T /d
                                         -#4w4

                                        Comptroller
                                                         *

                                                     General
                                        of the United States
Enclosures



The Honorable William S. Mailliard
House of Representatives




                                                                       -   c   -