An examination of the cost reimbursement policies and procedures followed by DoD when providing services to private organizations.
Conn, Michael David
Fremgen, James M.
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This thesis examines the billing policies followed by the Department of Defense (DoD) in recovering costs incurred from providing services to private enterprises. Examples studied include DoD assistance provided to the Paramount Pictures Corporation in the production of the motion pictures Top Gun and The Hunt for Red October, as well as to the Exxon Corporation for assistance provided in the Exxon Valdez oil-spill cleanup. Although the purposes for the assistance provided in each case were unique, the types of resources used (i.e., ships, aircraft, and personnel) were the same. Due to differences in DoD billing policies, DoD did not seek the same reimbursements from both corporations. For example, DoD required reimbursements from Exxon for all military personnel costs incurred in the Exxon Valdez case, but not from Paramount Pictures for similar costs in The Hunt for Red October production. Inconsistencies were also found in the implementation of the various policies by the DoD Components involved. If uniformity and consistency in billing procedures are to be attained, additional billing guidance and policy revisions are required.
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