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

120151 1 (1979-03-29)

handle is hein.gao/gaobacxvc0001 and id is 1 raw text is: .OR A~ Wg 2 9 W9S Major General Richard E. Cavazos Commanding Officer y Fort Lewis, Washington 98433 120151 Dear General Cavazos: We re ently completed a limited survey of[procurement practices at Fort Lewis Although we found no improper payments or significant weaknesses in procurement practices, we wish to bring two procurement transactions to your attention. These matters, which concern (1) actions to assure the reasonableness of a contract price modification and (2) a purchase order to paint two buildings that did not require painting, were discussed with your staff. LACK OF ASSURANCE THAT CONTRACT MODIFICATION PRICE WAS REASONABLE Fort Lewis issued contract DAKF57-78-D-0146 to Empire Painting Company, Inc., Tacoma, Washington, for painting the interiors of miscellaneous buildings from May 1, 1978, to April 30, 1979, at an estimated price of $132,857.50. A contract modification (P00002, dated November 16, 1978) was issued to add the painting of an estimated 50,000 square yards of building interiors with two coats of fire retardant paint at $2.42 per square yard, or $121,000. In establishing this price, the Directorate of Facilities Engineering did not develop an adequately supported estimate and the contracting officer did not obtain required pricing information from the contractor. Empire Painting proposed a unit price of $2.42 a square yard and Facilities Engineering estimated a unit price of $1.80. Based on a statement by Facilities Engineering that the Government estimate was not adequately supported by realistic costs, the contracting officer concluded that the contractor's offer appeared to be reasonable. The estimator who developed the Government's estimate said that his estimate was based on telephone contacts or quotations and personal knowledge. However, no record was developed to show the pricing information obtained by telephone or how the Government's estimate was computed. Also, according to the Armed Services Procurement Regulation, paragraph 3-807.3, (DAC#76-16 August 1, 1978) the contracting officer shall require the contractor to (1) submit cost or Pricing data in UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 201, 415 FIRST AVENUE NORTH SEATTLE, WASHINGTON 98109 % 1,X6 S I've 0 .......... ............ ............ .......... ............ ........... .......... ........... ........... q 7

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