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B-180024 1 (1974-04-30)

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                              WASHINGTON, D.C. 20548      2   r     O      2


PR1OCUREMENT AND SYSTEMSRE            ASDPR3017
  ACQUISITION DIVISION


       B-180024


  ,[ ~ The Honorable Charles H. Percy
  /) United States Senate

       Dear Senator Percy:

            In response to your letter of October 30, 1973, we have looked
       into allegations that the Army Aviation Systems Command (AVSCOM),       ':
       St. Louis, Missouri, violated Department of Defense and Army
       prnmnt r        l~tins. Specifically, one of your constituents
       indicated that AVSCOM r... m2 jpw a            Regif-._..t._by on only
       while he believes that the procurement descriptions should include
       drawings disclosing physical characteristics. He also stated that
       the practice followed by AVSCOM causes wasteful expenditures of
       taxpayers' funds.

            During our review we met with your constituent who elaborated
       on the problems, stating that AVSCOM's lack of configuration
       management, which is generally defined as a discipline to control
       changes, is resulting in significant waste of taxpayers' funds
       through repair parts obsolescence and higher contract prices. He
       also stated that engineering changes were misclassified and
       incorporated into contracts without proper approval.

            Our review did not identify any violations of procurement
       regulations or wasteful expenditures of funds and we found that
       the Command is generally complying with applicable configuration
       management regulations. The configuration management process,
       according to regulations, must be tailored to the particular item
       involved and must consider many factors, such as whether the item
       was privately developed and whether the Government has the right
       to control detailed configuration. We believe that in some cases
       drawings are not required to assure proper configuration management
       particularly when specifications adequately describe the item to
       be procured.

            We examined applicable Department of Defense and Army regulations
       and reviewed the processing of engineering change proposals (ECPs).
       We reviewed the configuration management control system at AVSCOM
       and at one contractor's plant, Bell Helicopter Company, Ft. Worth,
       Texas. We also held discussions with AVSCOM and contract officials.

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