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093223 1 (1971-03-12)

handle is hein.gao/gaobacxbs0001 and id is 1 raw text is: OP55 UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7068 FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 MlAR 1 2 1971 Captain K. B. Mattson Naval Plant Representative Douglas Aircraft Company McDonnell Douglas Corporation 3855 Lakewood Boulevard Long Beach, California 90801 Dear Captain Mattsons We recently completed a survey of the pricing of negotiated defense contracts at Douglas Aircraft Company, Long Beach, California. The objective of our survey was to review the procurement process and determine the extent of compliance by contractor and Government personnel with the requirements of Public Law 87-653 and the imple- menting provisions of the Armed Services Procurement Regulation. We included in our survey 25 firm fixed-price procurements over $100,000 awarded to the contractor during the period July 1, 1968, to November 30, 1970. Based on the results of our work, we do not plan to perform any detailed examinations of the pricing of these procure. ments at this time. Although the results of our survey were discussed with you and your staff at the completion of our work, we thought it would be useful to sumarize those procurement and contract adminis- tration issues which we believe warrant your attention. Need to improve technical evaluation procedues The Naval Plant Representative Office (NAVPRO) performed technical evaluations for,23 of the procurement actions included in our survey. Although these evaluations appeared to cover the significant cost elements, they were performed by nontechnical personnel of the Contracts Division. We noted that evaluations performed for basic ordering agreement (BOA) orders lacked explanation for the conclusions reached and the recomendations made. We also noted that documentation in support of the work performed was not maintained. 5$OTH ANNIVERSARY 1921-19711 - ---

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