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093129 1 (1974-08-06)

handle is hein.gao/gaobacwzw0001 and id is 1 raw text is: - a 2 ~L3~1~J ~ ~Q~ou~4~' jfE~ STATES GENE~ ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7068, FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 AUG 0 1974 Mr. Peter Van Benschoten Vice President - Operations Amphenol SAMS Operations The Bunker-Ramo Corporation 9201 Independence Avenue Chatsworth, California 91311 LM093129 Dear Mr. Van Benschoten: As part of a nationwide review of the effectiveness of Defense procurement regulations concerning subcontract cost or pricing data submissions, we have examined the prices proposed and negotiated for major firm fixed-price subcontracts involving cable assemblies procured from Amphenol Space and Missile Systems Division, Chatsworth, California, under fixed-price incentive prime contracts for the fiscal year 1972 MINUTEMAN III missile procurement. In particular, our review included subcontracts AlMM-528334 and A2MM-528336 awarded by the Autonetics Group, Rockwell International Corporation, under contract FO0701-69-C-0194 and subcontract 633693-28(29) awarded by the Bell Aerospace Company under contract F04701-71-C-0038. Our review primarily concerned the reasonableness of the subcontract estimates included in the prime contract prices in relation to cost or pricing data available at the time of prime contract or subcontract negotiations. We found that: -- The amount negotiated in the target price of contract -0194 for the Amphenol subcontract effort was about $775,900 higher than indicated by available cost data at the time of prime contract negotiations. -- The amount negotiated in the target price of contract -0038 for the Amphenol subcontract effort was about $168,100 higher than indicated by available cost data at the time of subcontract negotiations. 2[0 47?1 0,411'

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