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089529 1 (1973-06-15)

handle is hein.gao/gaobacvnz0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7068 FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 JUN 1 5 1973 Commander Daniel J Linehan, USN Officer in Charge, Naval Regional Procurement Office 312 N Spring Street, Room 965 Los Angeles, California 90053 Dear Commander Linehan We have completed a review at the Naval Regional Procurement Office, Los Angeles (NRPOLA) of the pricing of noncompetitive contracts based on certified cost or pricing data 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 ade- quacy 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 effective- ness of the use of such data and the results of proposal evaluations in price negotiations The two procurements reviewed at NEPOLA were contracts N00123- 72-C-0221 and N00123-72-C-0825 We discussed the results of our review with members of your staff at the completion of the assign- ment The following matters are being brought to your attention for further consideration in improving the procurement process at NRPOLA COST OR PRICING DATA SUBMITTED IN SUPPORT OF PRICE PROPOSALS The cost or pricing data submitted with the contractors' price proposals generally did not identify the bases for proposed costs as required by Armed Services Procurement Regulation (ASPR) 3-807 3 and as outlined in Appendix A to the ASPR Manual for Contract Pricing (ASPM No 1) The proposal for contract -0221 did not identify the bases for any of the estimated costs and the proposal for contract -0825 did not identify the bases for estimated material, labor, and miscellaneous costs We were able to determine the bases for the

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