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B-169434 1 (1973-07-25)

handle is hein.gao/gaobaafyd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE 7 O WASHINGTON, D.C. 20548 11111 111 III i Illlll 11111l111l1lll ll1l1l1llllllllii PROCUREMENT AND SYSTEMS LM096132 ACQUISITION DIVISION B-169434 JUL 25 1973 The Honorable James C. Fletcher Administrator, National Aeronautics 37 and Space Administration Dear Dr. Fletcher: We recently reported to the Secretary of Defense on our review of subontract estimates included in Department of Defense (DOD) prime contract prices negotiated on the basis of cost or pricing data submitted and certified as requiI-d6 by Public Law 87-653. We wanted to find out if contracting officials had reduir-Arcttors to support major s es timatas~withsc or pricign data. In conjunction with this review, we made a limited inquiry into National Aeronautics and Space Administration (NASA) policies on obtaining subcontractor cost or pricing data to support subcontract estimates in prime contractors' proposals and examined several subcontract estimates in prime contracts awarded by the Lyndon B. Johnson Space Center, Houston, Texas. We found that NASA, unlike DOD, does not have a mandatory requirement for prime contractors to support major subcontract estimates in noncompetitive proposals with subcontractor cost or pricing data, although it has instructed its procurement officials to obtain such data when appropriate. NASA offi- cials feel that a mandatory requirement would delay procure- ment. This, however, has not been a problem for DOD. Our review of three subcontract estimates included in two prime contracts awarded by the Space Center showed that the supporting subcontractor cost or pricing data obtained was incomplete in all respects for two of the estimates and was partially complete for the third. We believe that making sub- mission of subcontractor data mandatory would improve the sub- contractor data received from prime contractors and aid the contracting officers in evaluating the reasonableness of

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