About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

094284 1 (1976-05-19)

handle is hein.gao/gaobacxkd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE DALLAS REGIONAL OFFICE SUITE 800, 1200 MAIN TOWER DALLAS, TEXAS 75202 MAY 19 1976 Vice Adm. K. L. Lee, U.S. Navy Commander Naval Air Systems Command Room 1200, Jefferson Plaza 1 Washington, D.C. 20361 Dear Admiral Lee: This report summarizes the results of our review of contract N00019-74-C-0131 awarded to Texas Instruments, Inc. (TI), Dallas, Texas, by the Naval Air Systems Command (NAVAIR). We initiated this review subsequent to a nation-wide survey of Department of Defense negotiated prime contracts. Our survey of contract -0131 had indicated possible defective pricing in TI's base shop labor proposal. Base shop labor iLs a critical cost element since it directly, or indirectly, accounted for $7,053,971, or about 55 percent of the revised price proposal for this contract. We found that the negotiated price for contract -0131 was at least $845 00 in excess of the price indicated by the most current, accurate and complete base shop labor cost data that the contractor had avail- ab e before contract negotiations. However, the Government contri- bu d to about $334,000 of this overpricing by overlooking and failing to incorporate in the contract price the lowest base shop labor cost proposed by the contractor. Furthermore, although we did not quantify its effect, we believe the contract price was further overstated because the contractor did not appropriately consider increased future produc- tion which could reasonably be expected to impact significantly on proposed contract labor costs. We also noted other areas relating to the Government's evaluation of the contractor's price proposal that need improving. However, these matters are being reported to the Defense Contract Audit Agency (DCAA) and the Defense Contract Administration Services Office (DCASO) in a separate report. A copy of the report will be submitted to you. To develop these points, we examined the cost and pricing data submitted by the contractor in support of proposed costs, the negotiation memorandum, selected actual labor costs, and the Government's evaluation of the contractor's pricing proposal.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most