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089503 1 (1973-06-15)

handle is hein.gao/gaobacvnj0001 and id is 1 raw text is: UNITE D STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7068 FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 JUN 1 5 1973 Lieutenant Geneial Kenneth W Schultz Commander, Headquarters, Space and Missile Systems Organization (AFSC) Post Office Box 92960 Worldway Postal Center Los Angeles, California 90009 Dear General Schultz We have completed a review of the pricing of noncompetitive contracts based on certified cost or pricing data at the Space and Missile Systems Organization (SAMSO), El Segundo, and Norton AFB, California The review was part of an overall evaluation of the Department of Defense management of contract pricing responsibilities under Public Law 87-653 The objectives of our review were to determine (1) the adequacy of cost or pricing data submitted by contractors in support of price proposals, (2) the adequacy of reviews and evaluations of such data by cognizant Government personnel, and (3) the effectiveness of the use of such data and the results of proposal evaluations in price negotiations Our review included 11 procurements with an aggregate negotiated price of $285 3 million The enclosure contains a listing of the contracts reviewed and a summary of our findings The results of our review were discussed with members of your staff at the completion of this assignment The following matters are brought to your attention for further consideration in improving the procurement process at SAMSO. COST OR PRICING DATA SUBMITTED IN SUPPORT OF PRICE PROPOSALS We found that the majority of the estimated costs were sup- ported in the price proposals by adequate cost or pricing data However, in 6 of 11 cases, the bases for at least one significant element of estimated costs were not identified in the proposals #-&-0 0R60

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