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![handle is hein.gao/gaobacxqq0001 and id is 1 raw text is:
DOCUMENT RESUME
05783 - 1B1166127]
IReview of NASA Contract]. February 13, 1978. 5 pp.
Report to W. R. Lucas, Director, National Aeronautics and Space
Administration: George C. Marshall Space Flight Center,
Huntsville, AL; by William D. Martin, Jr., Regional Managere
Field Operations Div.: Regional Office (Denver).
Contact: Field Operations Div.: Regional office (Denver).
Organization Concerned: Martin Marietta Corp.: Denver Div.
Athority: Truth in Negotiations Act 410 U.S.C. 2304).
A contract awarded by the Marshall Sace Flight Center
to the Martin Marietta corporation, Deaver Division, was
reviewed as part of a Zurvey of procedures and practices used by
civilian agencies to negotiate noncompetitive contracts with
prices exceeding $100,000. The revies atteested to determine
whethec the Marshall Space Flight Center required Martin
Marietta to furnish current, complets, and accurate cost or
pricing data and whether Marshall eval3zted and relied oz that
data in negotiating the contract price. bad Martin Marietta
provided current, complete, and accurate data concerning cost
reduction studies onqoing at the time of negotiaticns, the
contracting officer weald have had a scund tasis for reducing
the price by $03,649. Martin Marietta sill realize a substantial
unanticipated profit resulting from savings on material
purchases because the contracting cfticer failed to follow up on
recommendations contained in the Defense Contract Audit Agency
audit report. The Director of the Marshall Space Plight Center
sho114 detervine whether the Government is entitlad to a price
adjustment or recovery of costs attritutable tc cost reduction
actions tinder the contract. He should emphasize to contracting
officials the importance of obtaining, evaluating, and using
current, complete, and accurate cost cr Fricing data to
negotiate noncompetitive contract prices. (BRS)](ViewImageLocal?handle=hein.gao/gaobacxqq0001&div=1&collection=&method=preview&ext=.png&size=3)