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Improper Lobbying Activities by the Department of Defense on the Proposed Procurement of the C-5B Aircraft

AFMD-82-123 Published: Sep 29, 1982. Publicly Released: Sep 29, 1982.
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Highlights

In response to a congressional request, GAO investigated the accuracy of allegations regarding the existence of a Department of Defense (DOD) lobbyist group in favor of the proposed procurement of the C-5B aircraft. Specifically, GAO was asked to determine whether these activities violated statutory prohibitions of lobbying with appropriated funds.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should enact in permanent legislation a set of guidelines on appropriate actions by agencies, Federal employees, and contractors when carrying out legitimate communication with Congress regarding agency policies, programs, activities, and procurements. Such guidance should specifically preclude cooperative efforts, as exhibited in this case, among Government officials and Federal fund recipients, such as contractors and grantees, for the purpose of influencing members of Congress on legislation being considered by that body. Permanent legislation should lead to agency heads establishing appropriate implementing rules and regulations.
Closed – Not Implemented
The agency does not intend to act.
Congress should consider amending the legislative liaison appropriation restriction which limits the amount of funds that Defense and the service departments may spend on these activities. The law should specifically state which costs are subject to this restriction.
Closed – Not Implemented
The agency does not intend to act.

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Defense The Secretary of Defense should take all necessary steps to preclude the charging of any lobbying costs by Lockheed Corporation, the Boeing Company, and their subcontractors, or other firms, to any existing Federal contract. The Defense Contract Audit Agency and Defense plant representatives should be directed to disallow such costs in their audits of overhead accounts.
Closed – Not Implemented
The agency does not intend to act.
Department of Defense The Secretary of Defense should direct all Defense negotiators to seek contract amendments or provisions which will specifically exclude all lobbying costs in all current as well as future contracts.
Closed – Not Implemented
The agency does not intend to act.
Department of Defense The Secretary of Defense should conduct an administrative investigation after the end of the fiscal year to determine if a violation of the Antideficiency Act (31 U.S.C. 665) has occurred in the expenditures related to legislative liaison activities and take action as required by the statute if the appropriation restriction has been exceeded.
Closed – Not Implemented
The agency does not intend to act.
Department of Defense The Secretary of Defense should establish proper accounting and internal controls to prevent violations of the Antideficiency Act (31 U.S.C. 665) from recurring.
Closed – Not Implemented
The agency does not intend to act.
Department of Defense The Secretary of Defense should review any existing guidance relating to actions and behavior of Defense officials when communicating with members of Congress on legislation, procurement proposals, and budget initiatives and revise such guidance in an effort to preclude future incidents such as described in this report.
Closed – Not Implemented
The agency does not intend to act.

Full Report

Topics

Aircraft industryAppropriated fundsCrimesIrregular procurementLobbying activitiesProposed legislationMilitary forcesLobbyingAircraft acquisition programSubcontractors