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DOCUMENT RESUhE
04691 - [B0125030] tBeetr±tut
[Award and Administration of Vavy Contract for Bmb Suspension
Lugs]. PSAD 78-67; B-190918. January 12, 1978. 4 pp.
Report to Rep. Marc Lincoln Harks; by Elmer B. Staats,
Couptrcller General.
Issue Area: Federal Procurement of Goods and Services:
Reasonableness of Frices Under Negotiated Contracts and
Subcontracts (1904).
Contact: Procmrement and Systems Acquisitior Div.
Budget Function: National Defunse: Department of Defense -
Procurement & Contracts (058).
Organization Concerned: Department of the Navy: Navy Ships Parts
Ccntrul Center, Mechanicsburg, PA; David B. Lilly Co., Inc.:
Delaware Fastener Div.
Congressional Relevance: Rep. Marc Lincoln Marks.
The Navy's administration of a contract for bomb
suspension lags awarded tc the Delaware Pastener Division of
David h. Lilly Company, Inc., was reviewed to determine whether
the Ships Parts Control Center complied with proc ement
regulations in &warding the contract and subsequently allowing
late deliveries and whether the Government incurred additional
costs because the contractor failed to meet the original
delivez. dates. Findimgs/Conclusions: The Delaware Fastener
Division submitted the lowest of three bids for the suspension
lugs and received the $223,444 centract without further
negotiations. A preavard survey indicated that nela,'are Fastener
could meet tie contract requirements but that a subcontractor
had financial problems. Monthly shipments of 5,000 units were to
be made until the total quantity of 37,117 was delivered. The
contractor misseO the first two deliveries because of allegedly
defective steel .-ceived from suppliers. As of October 31, 1977,
Delaware Fastener had only delivered 2,955 cf 7,500 units
required under a revised schedule. A contract modification was
executed on December 5, 1977, to revise further the delivery
schedule. The Ships Parts Control center's actioLs in awarding
and administering the contract, including the extension of
delivery dates, were reasonable under the circumstances and were
in accordance with relevant procurement regulaticns. Little or
no additional costs were incurred by the Government because og
late deliveries. (RRS)](ViewImageLocal?handle=hein.gao/gaobaawmq0001&div=1&collection=&method=preview&ext=.png&size=3)