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PSAD-77-47 1 (1976-12-10)

handle is hein.gao/gaobaabqy0001 and id is 1 raw text is: DOCUMENT RESUME 00085 - [A05906491 Contracting for Navy Ship Repairs and Overhaul, Need for Change. PSD-77-I?; B-133170. December 10, 1976. 14 pp. + 2 appendices. Report to the Congress; by Elmer B. Staate, Comptroller General. Issue Area: Federal Procurement of Goods and Services: Beasonatleness of Prices Under Negotiated Contracts and Subcontracts (1904). Contact: Procurement and Systems Acquisition Div. Eudget Function: National Defense: Department of Defense - Procurement & Contracts (056). Organization Concerned: Department of the Navy; Department of Defenee, Congressiona Relevance: Congress. The regulations, policies, procadures, and practices used for procuring overhaul of (SUBSHIPS) were reviewed. The emphasis was on the extent of competition ottained and on the determination of fair and reasonable prices. The Navy relies on formal advertising to assure that contract prices are fair and reasonable, but such reliant3 ray be imprudent. Findings/Conclusions: Imong the condit*.ons which eliminate or reduce competition are: the Navy's policy of having ships overhauled at or near home ports, the limited physical capacity and technical capability of private ohipyards, and the Navyes inability to provide complete and accurate descriptions of the work to be done befr.e the contract is awarded. The prices of the initial formally advertised contraicts were frequently increased by 50% or more -hrough numerous modifications. The SUBSHIPS districts generally did n-it oS-ain adequate cost or pricing data when negotiating prices oi modifications, and had difficulty conducting such negotiations in a timely manner. Of these modifications, 38% were caused by incomplete or inaccurate specifications. Recommendations: The use of ccmjetitive negotiation in procuring ship repairs should te tested. (RRS)

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