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B-189176 1 (1979-04-03)

handle is hein.gao/gaobabjne0001 and id is 1 raw text is: ./1 UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548,- .. 1,N REPLY B-139176 REFER TO: OFFICE OF GENERAL COUNSEL APR Vice President of Marketing siAPR3 179 Philip J. Corso/ ~ Mars Signal Light Company 1224 Industrial Road ej( Naples, FL 33942 -lr. Dear Mr. Corso: ~ ~~~ ~b Your October 30, 1978, letter to The Comptroller General has been forwarded to this Office for reply. In that letter, you point out that the Defense Logistics Agency mailed a letter to Senator Chiles in w;hich they admit giving Julian A. McDermott Corporation (McDermott) and Federal Sign and Signal Corpor- ole /? ation (Federal) conditional first article approval. You claim this conditional approval had not been admitted previously, nor vwas it shown to our investigator. You also Point out that DLA states that first article requirements were waived for McDermott and Federal not because of the conditional approval aiven their first articles, but because their full production run items did meet specifications. You attached test reports to show that the full production items did not meet specifications. We have reviewed these materials, along with the December 12, 1978, letter (with attachments) from Counsel, DLA, to the Senate Subcommittee on Federal Spending Practices and Open Government. In that letter, DLA admits that it erred in making the statement that McDermott's and Federal's full production run items did meet specifications. The letter states that waiver of first article requirements for M'cDermott was based on a July 17, 1972, approval of a McDermott first article test report, and waiver of first article requirements for Federal was based on Federal's December 4, 1973, fulfillment of a condition attached to an October 5, 1973, conditional approval of its first article test report. The report from DLA also reviewed actions taken since you fur- nished DGSC a copy of the test report on McDermott items prepared for you by Harris Electronics Systems Division. On the basis of that report, 1 DGSC requested testing of McDermott olems by the Naval e,,,ea;ons Station,

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