About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

089367 1 (1975-05-22)

handle is hein.gao/gaobacvil0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 1903 JOHN F. KENNEO? FEDEAAL BUILDING GOVERNMENT CENTER BOSTON, MASSACHUSETTS 02203 May 22, 1975 Mr. William Melymuka Region4l Manager Defense Contract Audit Agency 47 424 Trapelo Road Waltham, Massachusetts 02154 Dear Mr. Melymuka: The General Accounting Office is examining the reasonableness of noncompetitive prime contract prices negotiated under the provisions of Public Law 87-653. As part of this examination, we reviewed the prices proposed and negotiated for firm fixed price contract DAAA21-72- C-0856 awarded by the Department of the Army, Picatinny Arsenal, Dover, New Jersey, to Raymond Engineering, Inc., Middletown, Connecticut. The contract provides for the production of M120 arm/safe defices. The results of our review were discussed with your Bridgeport Branch Office staff. Enclosed for your information is a copy of our letter report to the Commander, Picatinny Arsenal, Dover, New Jersey, which summarizes the results of the review. In conjunction with our evaluation of proposed fabrication costs of 26 parts, we noted that the preaward audit did not include a verification to historical data available in the contractor's cost accounting system. The Arsenal, in its audit request, stated a technical evaldation was being performed by its engineering personnel. DCAA did not review direct labor hours and qualified its report, stating the technical evaluation had not been received. Also, the contractor prepared its proposal on the basis of making four other parts that it had purchased for the prior contract at a unit price which was less than the proposed make costs and included costs to make as well as costs to buy three other parts. The contractor continued to buy these seven parts under contract -0856. In our opinion, the preaward audit should have included an evaluation of proposed labor hours. WC

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most