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093336 1 (1972-05-17)

handle is hein.gao/gaobacxef0001 and id is 1 raw text is: 




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                                                     MAY  17 1972

General Peter G. Olenchuk
Deputy Commanding General
U. S. Army Munitions Command
Joliet, Illinois  60436

Dear General Olenchuk:

     The General Accounting Office has reviewed the pricing of two
negotiated fixed-price contracts for the M423 fuze awarded by the
U. S. Army Ammunition Procurement and Supply Agency (APSA) to
Westclox, Division of General Time Corporation, A Talley Industry
Company, LaSalle, Illinois.  Westlox  is a base producer for the
M423 fuze and has produced this fuze since 1965.

     Our examination was made as part of a continuing review of the
pricing of contracts subject to the provisions of Public Law 87-653,
effective December 1, 1962, as implemented by the Armed Services
Procurement Regulation (ASPR).

     The contracts included in our review are shown below.


Contract


     Number

DAAAO9-69-C-0105
DAAAO9-70-C-0064


Award
date

9/19/68
10/10/69


          Unit
Units     price


920,000
773,441


Contract
price
(note a)


$4.349    $4,527,040
4.35       3,781,360


     aA chronology of procurement actions is shown in appendix I;
     amounts  include delivery incentive payments and other minor
     adjustments.

We reviewed the cost estimates in support of prices negotiated for
these contracts to determine the reasonableness of the estimates in
light of information available to Westclox prior to negotiations.



                           74 +            ) ZacF9333C


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UNITED STATES GENERAL ACCOUNTING  OFFICE
            REGIONAL  OFFICE
  ROOM 403 U S CUSTOMHOUSE 610 SOUTH CANAL STREET
          CHICAGO, ILLINOIs 60607


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