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PSAD-79-88 1 (1979-06-13)

handle is hein.gao/gaobaazkh0001 and id is 1 raw text is: ,' UNITED STATES G~ENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 LM109729 PROCUREMEINITANDSYSEMS This is a report on -'&2 Le&,L;s of work performed pursuzatit to a o-zquc eju zz:e c 7,'Ost aulhos. Znon B-186072 should be obtained bearo a~~tc 2- ,S 0, 1 bIs rp~. JUNE 13, 1979 The Honorable Thomas A. Luken RLAE lill111 House of Representatives 109729 Dear Mr. Luken: NAt your request, we reviewed a study on using the Feed , Materials Production Center, Fernald, Ohio, as a potenti-al p~foducer of depleted uranium penetrators (GAU-8/A) for the Air Force. As the study shows, several million dollars can be saved by combining production of Department of Energy (DOE) items with production of the Air Force°-penetrators at the Fernald facility. The Air Force penetrators are currently produced under V subcontracts awarded by the prime contractors, Aerojet Ord-_O nance Manufacturing Company of Aerojet-General Corporation-, \-3 and Honeywell Defense System Division of Honeywell Inc_ VL-V These prime contractors, who do some finishing work on penetrators, are primarily assemblers of about 15 compo- nents which make up the 30-millimeter ammunition used in the GAU-8/A Gun System. NATIONAL LEAD'S STUDY The National Lead Company of Ohio, the operator of the facility for DOE and a subsidiary of NL Industries, Inc., prepared a study for the Air Force under the direction of DOE. This study, dated February 15, 1978, showed that mil- lions of dollars could be saved if National Lead could use the Fernald facility for producing the GAU-8/A penetrators. These savings are possible because the production of the penetrators can be integrated with current DOE production without proportionate increases in overhead and labor costs and with no increase in the contractor's fee. However, the contractor pointed out to the Air Force tha the fee was sub- ject to negotiation. GC,,e//5- ., PSAD-79-88

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