GAO Report Finds DoD Cost Comparison Tool Lacking, Confirms PSC Belief

Arlington, Va., September 27, 2013—A recently released Government Accountability Office report on the Defense Department’s cost-comparison guidance criticized the guidance for failing to cover all of the costs necessary to assess whether a function would be more cost-effective if performed by the government or the private sector, a contention long argued by the Professional Services Council.

“For years we have been saying that the Defense Department’s guidance ignored key costs and was an inadequate tool to use when determining the most cost-effective solution for commercial functions,” said PSC President and CEO Stan Soloway. “This GAO report should spur the department to adopt a more comprehensive and more accurate cost-comparison methodology that addresses all the shortcomings identified by the Center for Strategic and International Studies in its 2011 DoD Workforce Cost Realism Assessment and in this report.”

“We strongly support and echo GAO’s call for the Defense Department to develop new guidance that accounts for missing necessary costs for both the government and the private-sector side of the equation. We commend GAO for recommending that further guidance also be issued regarding cost elements that DoD entities have identified as challenging to calculate and, as a result, have chosen to ignore in some cases,” Soloway said. “We appreciated the opportunity to contribute to GAO’s report and would welcome the opportunity to help the Defense Department craft an improved and comprehensive cost-comparison tool that ensures the government is getting the best return for every dollar it spends.”

The GAO report can be found here.

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About PSC: PSC is the voice of the government professional and technical services industry. PSC’s more than 370 member companies represent small, medium, and large businesses that provide federal agencies with services of all kinds, including information technology, engineering, logistics, facilities management, operations and maintenance, consulting, international development, scientific, social, environmental services, and more. Together, the trade association’s members employ hundreds of thousands of Americans in all 50 states. Follow PSC on Twitter @PSCSpeaks and @StanSoloway.