About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

NSIAD-85-27 1 (1985-03-22)

handle is hein.gao/gaobabnps0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 B-216912 Major General Orlando E. Gonzales, USA Commanding General U.S. Army Aviation Systems Command St. Louis, Missouri 63120-1798 MARCH 22, 1985 126528 Dear General Gonzales: Subject: Army Contracts Overpriced Due to Misapplication of Spares Formula Pricing Factor (GAO/NSIAD-85-27) We have examined selected aspects of the pricing of five Army contracts awarded by the Troop Support and Aviation Materiel Readiness Command (predecessor of the Aviation Systems Command), St. Louis, to Turbomach, a Division of Solar Turbines, Inc., San Dieqo, California. The firm fixed-price contracts, valued at about S4 million, provide for producing auxiliary power and electronic sequence units as spares for the UH-60 helicopter program. The review was prompted by a GAO Fraud Hotline call which alleged that Turbomach had sold auxiliary power units to the Army at prices that were higher than those charged Sikorsky Aircraft, the helicopter prime contractor. We initiated the review to determine the reasons for any price differences and the reasonableness of the prices paid by the Army. CONTRACTS WERE OVERPRICED The contracts were overpriced by about $872,000, because Turbomach did not give Army contracting officials information relative to the use of a spares formula pricing factor. The spares formula pricing factor,1 which was added by Turbomach to the proposed manufacturing/acquisition and material-handling cost, was to apply only to procurements of lFor a description of this factor, see page 5, enclosure I. (393068) NATIONAL SECURITY AND iNTERNATIONAL AFFAIRS DIVISION W 0

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most