Statement of Administration Policy: H.R. 3140 - Standards for Inventory Accounting Systems Used by Department of Defense Contractors

(House)
(Rep. Daniel (D) Virginia and 12 others)

The administration opposes H.R. 3140 because it is unnecessary in light of administrative actions already taken by the Department of Defense, and the bill's contractor certification provision is objectionable.

A joint Defense-industry group has already reached agreement in principle on standards for inventory accounting systems and work is underway to implement the standards. H.R. 3140's requirement for contractor certification of compliance with the standards would create unnecessary additional paperwork and would be of minimal value because each inventory accounting system will still have to be carefully evaluated by government audit and contract administration personnel before being accepted.