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089575 1 (1976-04-23)

handle is hein.gao/gaobacvpr0001 and id is 1 raw text is: ~59675 ,DS7 UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE 5705 THURSTON AVENUE VIRGINIA BEACH, VA 23455 April 23, 1976 Major General A. B. C. Crawford, Commander United States Army Electronics Command ATTN: DRSEL-PP-P Fort Monmouth, New Jersey 07703 Dear General Crawford: As part of our continuing review of contract prices negotiated under Public Law 87-653 and the Armed Services Procurement Regulations, the United States General Accounting Office has examined the reasonable- ness of prices negotiated for three contracts awarded by the United States Army Electronics Command to the International Telephone and /Telegraph Corporation, Electro-Optical Products Division, Roanoke, Virginia, for night vision goggles. We found that the price paid for the contract items may have been about $3.3 million lower had the contractor submitted accurate, complete, and current data at the time of negotiation. Also, additional items purchased under modifications to two contracts may have been overpriced and, based on data available, the price for a contract now under negotiation probably can be reduced. Detailed information relative to the pricing of night vision goggles under the contracts is presented in the attached summary of information obtained during our review. This information is being reported in order that a determination can be made of the Government's legal entitlement to a price adjustment under contracts already awarded and in establishment of an equitable price for future contract awards. We would appreciate notification of any adjustment in current contract prices or reduction of future prices as a result of this summary. Sincerely, Alfonso J. Strazzullo Regional Manager C 7 I L t

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