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

MASAD-81-16 1 (1981-03-05)

handle is hein.gao/gaobabbpc0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 MISSION ANALYSIS AND SYSTEMS ACQUISITION DIVISION 3-202293 The Honorable Drew L. Lewis The Secretary of Transportation MARCH 5, 1981 114504 Subject: Ytract Overpriced and Established Pricing Regulations and Procedures Not Followe 7 (MASAD-81-16) Dear Mr. Secretary: In reviewing the pricing of firm-fixed-price con- tract DOT-FA774A-4047, we found that the contract was over- priced by about $322,000 because of inaccurate and noncurrent data and questionable judgment used to price the contract. (See enc. I.) I This contract was awarded to the Raytheon Company, Equip- ment Division, Sudbury, Massachusetts, by the Federal Aviation Administration (FAA). The contract provides for the purchase of 70 plan view displays, 92 mechanical installation kits, 66 display control and vector generators, and revisions to test procedures and miscellaneous documentation. The total negotiated price of the contract was $5,536,375. We selected this contract as part of a nationwide review of the pricing of negotiated noncompetitive contracts awarded by civil agencies. Our objective was to determine whether Federal Procurement Regulations were followed in negotiating the contract price and whether the contract price negotiated was reasonable in relation to cost or pricing data available to the contractor at the time of contract negotiation. For noncompetitive contracts, the Federal Procurement Regulations generally require (1) certified cost or pricing data to sup- port the proposed contract price and (2) a contract price reduction clause which allows the contracting officer to reduce the contract price by any increase caused by noncur- rent, incomplete, or inaccurate certified cost or pricing data. (950576)

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