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PSAD-77-85 1 (1977-03-15)

handle is hein.gao/gaobaacbb0001 and id is 1 raw text is: 



                          DOCUET RISURE                 5
01131 - (110516901        DOUNU                   iSE

Lockheed's Commission Payments to Obtain Foreign Sales.
PSAD-77-85; B-169300. march 15, 1977. Released larch 31, 1977. 6
pp. + appendices (13 pp.).
Report o San. Willia Proxmire, Chairman, Senate Conmittee on
Banking, Housing and Urban Affairs; by Robert F. Keller, Acting
Comptroller General.

Issue Area: Federal Procurement of Goods and Services:
    RiasoLableness of Prices Under Negotiated Contracts and
    Sukcontracts (1904).
Contact: Procurement and Systems Acquisitin Div.
Budget Function: National Defense: Department of Defense -
    Procuretent & Contracts (058).
Organization Concerned: Lockheed Aircraft Corp.; Department of
    Defense; Department of the Treasury.
Authority: Anti-Kickback Act (41 U.S.C. 51-54). International
    SecuritV Assistance and Arms Export Control Act of 1976
    (P.L. 94-329). 41 U.S.C. 22. 18 U.S.C. 431. 18 U.S.C. 433.
    10 U.S.C. 2207. 10 U.S.C. 2306(b). 41 U.S.C. 2541a).
    Executive Order 9001.

         Some aspects of Lockheed's foreign sales commission
payments were examino to determine whether commissions were
improperly charged to Government contracts, the impact of
disclosure of payments on sales, and the existence of
outstanding commitments to foreign officials. Since disclosure
of the payments, Lockheed has taken action to institute more
effective controls. Findings/Conclusions: There was no evidence
that questionable foreign payments were improperly charged to
U.S. Governmei.t contracts. ith the exception of uncertainties
associated with potential sales to Japan, there was no evidence
that disclosure had adverse effect on current or future foreign
sales. In Japan, there may have been effects on the market
potential of an antisubmarine warfare aircraft program and the
execution of orders for TriStar aircraft. There were ontstanding
commitments to international consultaats for commissioAs
totaling about 18 million as of June 30, 1975, but Lockheed has
refused to make payment to an official of a foreign
government-owned company end the case is now in litigation.
Ouestionable foreign marketing practices were considered
symptomatic of similar actions by oth;r corforations and
initiatives are underway in Congress and executive agencies to
deal with this natter. (HTU)

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