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093001 1 (1972-06-15)

handle is hein.gao/gaobacwwi0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON REGIONAL OFFICE CccL ul FIPTH FLOOR 803 WEST BROAD STREET FALLS CHURCH, VIRGINIA 22046 $It#i1 Aix 0)tvelppmtent Ceater *4slmttnt rftlaul 1974 Toy, As Part bf oft satay of the management of prourements frot small onatractrs 4z the ashington, .C.0 area, we inquired into the procure- snt of the Model 6260 Portable Radar Ttacking System by the Naval Air Developmett Cente from Vega Preciaion Lebratories, Inc., Vienna, Virginia, Th syatems, related seavices, and supplies were prbaured noneompetitively under the foliving negotiated firs tsed-price contracts: N6t9-71-04*16Y $eptember 1970 4 S14,$31 a62269-72--0052 August 1971 88,905 ?#62249-72-4403~0 DeOsiber 1971 04t eawey was prtavily concerned with the adequaoy of Govetment audit and teohiaeal aaluatious of the contractor's pricing proposals for oattatta -Q167 and -0030. We found that the reviews of these proposals by GoVeflment tpteentattves weve not performed in suffitient depth to detofmise whesthe they wver adequately supported. In addition, the audit topost n these proosals did not clearly identitfy limitations on the s4ope of the aooits, which way have bad an effect on contract negotiations, I the ftefsse Contract Audit Agency (POAA) made a jreaward audit and the Defense Couttact Adainitration Services (DAS) Distridt performed a teahniaal ewelatien of the prioing proposals for contracts -0167 and -0030. Although direct labor costs represensed about 25 percent of the total proposed price for theie contraets and, considering overhead, about 70 peent of the total proposed price was related to the contractor's proposed direat labor hours, it appears that both DCAA and PCAS performed limited reviews i the area of labor hours. The DCAS production engneer accepted the contractor's statements implying that the proposed labor hour vro based on hiatorical data. The production engineer did not V0rty the contractor's statements in expectation that DCA would do so $8 tts 4adpt BEST DOCUMENT AVAILABLE 09 3 0

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