An examination of the cost reimbursement policies and procedures followed by DoD when providing services to private organizations.

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Author
Conn, Michael David
Date
1991-06Advisor
Euske, K.J.
Second Reader
Fremgen, James M.
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Show full item recordAbstract
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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