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102329 1 (1977-05-10)

handle is hein.gao/gaobacxod0001 and id is 1 raw text is: 



DOCUMENT SESUME


02329 -  A11452451]

Survey of the Pricing of Noncompetitire  Contracts Over 1100,000
Awarded by Selected Civil  Agencies. Ma 10v 1977. 1 pp. +
enclosure  (11 pp.).

Report to John F. Flynn, Deputy Director,  Procurement and
Systems Acquisition Div.; by Burdell 0. 'uerger,  Assistant
Regional Manager, Field Operations  civ.'. Regional Office
(Seattle).

Issue Area: Federal Procurement  4f Goods and Services:
    Reasonableness of Prices Under  Negotiated Contracts and
    Subcontracts (1904).
Contact: Field Operations Div.: Regional Office  (Seattle).
Budget Function: General Governwent: Other General government
    (806).
Organization Concerned: National  Aeronautics and Space
    Administration: George C. MHzshall Space  Flight Center,
    Huntsville, AL; Eldec Corp.
Authority: P.L. 87-653.

         The pricing of a noncompetitive contract  for rocket
booster equipment for a space shuttle award4d  to Eldec
corporation by the National Aeronautics and  Spcce administration
was reviewed.  Findings/Conclusions: The contract  price was
overstated by at least $65,000 for two parts because  (1) the
formula Eldec used to compute proposed labor hours overstated
the hours required, and  (2) Eldec did not use current, complite,
and accurate data when computing proposed magnetic assembly
hours as certified at the time of negotiation.  Had such data
been provided, the contracting officer would have had a  sound
basis for neqotiating a lower contract price.  Recommendations:
The contracting officer should evaluate Eldec's data and
ascertain how much price reduction the Government is entitled
to, and should assure that, in other awards to Eldec, the method
of computing the percentage of work completed properly
recognites work in process.  (DJH)

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