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DoD OIG: DoD Could Save Millions in Profit Paid to Contractors on DoD Depot Labor 

February 1, 2016

Pursuit's Take

 

The Air Force did not effectively negotiate debt labor profit. As a result, three contractors will earn millions in profits and fees low-risk DoD labor. If an alternative partnership type was selected, the Air Force could have eliminated all profit and fees on work performed by the depot. Alternatively, if the current partnership type was assessed and determined appropriate, contracting officials could have reduced profit and fees by $9.6 million by lowering depot profit risk or eliminated $24.9 million in profit and fees on non-repair costs.

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