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092813 1 (1970-11-25)

handle is hein.gao/gaobacwrt0001 and id is 1 raw text is: I 6 . ILI 63%A~' UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7054, FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 ,, NU NOV 25 -Q70 Major General David M. Jones Commander Air Force Eastern Test Range Patrick Air Force Base, Florida 32925 Dear General Jones: LM092813 I7 As part of our review of the negotiation of contract prices under the provisions of Public Law 87-653, we have examined into the price proposed and negotiated for purchase order 8129KlG22 awarded to the Bendix Corporation, Electrodynamics Division, North Hollywood California, by Pan American World Airways, Inc., under cost-plus-incentive- fee contract AF08 (606) - 7500 with the Air Force Eastern Test Range, The purchase order was issued on May 8, 1969, in the amount of $119,714 and provided for 20 acoustic transponders. Our review was primarily concerned with the reasonableness of proposed costs included in the negotiated purchase order price in relation to cost or pricing data available at the time of contract negotiations. Although we have no major questions concerning the pricing of this order, we did note several instances in which either non-current cost data were used or inappropriate cost information vas included in the proposed material costs resulting in an increase of about $1,200 in the purchase order price. No further reporting of the results of our review is contemplated at this time. However, the above matter is being referred to the cognizant Defense Contract Audit and Contract Administration Services personnel at Bendix for consideration in their continuing surveillance of the contractor's cost estimating system. Sincerely yours, Krieger H. L. KRIEGER Regional Manager cc: Regional Manager, DCAA, Los Angeles Commander, DCASR, Los Angeles bee: Associate Director, DD - J. H. Hammond Mr. R. A. Bononi Mr. D. A. McCargar 9 13 7

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