A management case analysis of the Department of Defense Contractor Risk Assessment Guide Program

Abstract

This thesis investigates the extent to which the Contractor Risk Assessment Guide (CRAG) Program at General Dynamics in San Diego, California, is achieving the goal of improved Department of Defense oversight processes and more effective contractor internal control systems. The study describes the development, reviews the basic audit procedures, and examines the five chapters of the CRAG Program. The research demonstrates that reduced duplication of effort was attained at General Dynamics' San Diego divisions through coordinated statistical sampling and audit planning. The environment created by the CRAG program has resulted in an improved relationship between General Dynamics and government oversight personnel. The study concludes that the CRAG Program is an effective method to promote self-governance in the defense industry and recommends continued support from both industry and the Department of Defense.