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MASAD-81-14 1 (1981-03-09)

handle is hein.gao/gaobabbpp0001 and id is 1 raw text is: DUNITED STATES GENERAL ACCOUNTING OFFICE ~ouI WASHINGTON. D.C. 20548 MISION ANALYSIS AND SYSTEMS ACQUISITION DIVISION B-202277 MARCH 9,1981 The Honorable Caspar W. Weinbe rger /IliII/ll/ll/ff The Secretary of Defense 114564 Attention: Assistant for Audit Reports Dear Mr. Secretary: Subject: Expedited Yearend Contract Award Resulted in hortcutting Established Regulations and Procedures and Overprici (MASAD-81-14) We have completed a review of contract F 26600-78-C0104 awarded to Martin Marietta Corporation, Denver Division, Denver, Colorado, by the Contracting Division, Tactical Fighter Weapons Center, Nellis Air Force Base, Nevada. This firm-fixed-price contract provides for the procurement of 34 modular instrumentation packages, data, and peripheral equip- ment to instrument radar threat simulators, and command and control simulators at a negotiated price of $1,047,500. This was a first-time procurement for these items. Subse- quent contract modifications provided for additional quanti- ties and increased the contract price to $1,357,755. Our examination of this contract was part of a nationwide review of the pricing of negotiated noncompetitive contracts awarded at fiscal yearend by the Department of Defense activi- ties. This report is our fourth and final report that re- sulted from this review. The objectives of this review were to determine (I) whether contracting officers were following Public Law 87-653 and the Truth-in-Negotiations Act and implementing the Defense Acquisition Regulation in negotiating contract prices and (2) the reasonableness of the contract prices in relation to cost or pricing data available to the contractor at the time of contract negotiations. (950537) ( /

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