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092607 1 (1971-06-30)

handle is hein.gao/gaobacwme0001 and id is 1 raw text is: ctsS 11c JUN 30 1971 Nr. J. C, Coad Vice Prmident& Fiannial managemt North Aperican Rckwell Corporation. Elecrn Omaon e AiO CW irn i Avenue Anaheim, California 92803 LM092607 This is to advise you that we have completed our review of the prices negotiated for contract K00024-68-C-5253, order number 97 to Basic Ordering Agreement (BOA) N00104-68-A4-0004, and order number 69 to BOA N00383-69-&.0006 awarded to North American Rockwell Corpora- tion. Contract -5253 was issued by the Naval Ship Systems Comand and provided for component parts for the IK2 Ships Inertial Navigation Systems (81S). Order 97 was itsued by the U. S. Navy Ships Parts Control Center for MK1I SINS spare parts. Order 69 was issued by the U. S. avy Aviation Supply Office for miscellaneous spare parts for the AS aircraft. Our review was primarily directed towards determining the reason- ableness of proposed contract posts in accordance with the requirements of Public Law 87-653 and the iaplementing provisions of the Armed Services Procurement Regulation1 We found that the proposed matetial costs for order 97 were higher than indicated by available cost information by about $7,000, including add-on pricing factors. Although we have no wuot questions regarding the negotiated prices of contract -5253 and order 69, we found that propoped material costs for contract -5253 were not updated to reflect current purchase history despite substantial time lapses between the dates of the original cost proposal and contract eagotiations. With respect to order 69, we are unable to epress an opinion as to the reasonableness of proposed fabrication labor hours because pertinent contractor records were not etaed. The results of our review,, Ailich were discussed with compay officials at the completion of our work, are presented below. (otuol UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7054, FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 I IF.

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