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

PSAD-79-45 1 (1979-03-12)

handle is hein.gao/gaobaaytd0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 PROCUREM ENT AND SYSTEMS ACQUISITION DIVISION B-168450 MARCH 12. 1979 The Honorable Harold Brown The Secretary of Defense Attention: Assistant Secretary of Defense 01 (Comptroller) Dear Mr. Secretary: We have completed a review of the. C g of subcontract 11-52797 awarded to Aeronca, nc., Aerospace Group, Middletown, Ohio, by the Grumman,Aerospace Corpora- tion. This firm-fixed price subcontract provides for the follow-on procurement of engine inlet ramps for 80 (Lot VII) F-14 aircraft, at a price of $2,525,000. We also did a limited review of the pricing of expendable material and labor in Lots VIII, IX, and X. The F-14 is being manu- factured by Grumman for the Department of the Navy under prime contracts N00019-75-C-0078 and N00019-75-C-0 _ This examination was part of a nationwide review of t e pricing of noncompetitive subcontracts awarded under the Department of Defense-negotiated noncompetitive prime contracts. Our objective was to determine the reasonable- ness of the subcontract price in relation to the subcontrac- tor's supporting cost or pricing data, as required by Public Law 87-653. Our review was performed at the subcontractor's facility, where we reviewed documents and held discussions with sub- contractor personnel. We also considered work done by the Defense Contract Audit Agency, Defense Contract Administra- tive Services, and the prime contractor. In summary, we found that the Lot VII subcontract was overpriced by about $280,859 (see enc. 1) and the Lots VIII, IX, and X subcontracts were overpriced by about $84,337 (see enc. 2) because Aeronca did not disclose current, com- plete, and accurate cost or pricing data before negotiations. PSAD-79-45 108780 0 (~95(540

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