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092609 1 (1971-06-30)

handle is hein.gao/gaobacwmg0001 and id is 1 raw text is: DOPS UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 7054, FEDERAL BUILDING 300 NORTH LOS ANGELES STREET Los ANGELES, CALIFORNIA 90012 JUN 30 197j AIRMAIL Rear Adral J. A. Scott Ccamanding Officer LM092609 U. S. Navy Ships Parts Control Center Nechaniceborg, Pennsylvania 17055 Dear Adral Scotts As part of our review of the negotiation of contract prices under the provisions of Public Low 87-653, we have exained into the price proposed and negotiated for order number 97 to Baste Ordering Agreecent N00104-6S-A0004 awarded to North American Rockwell Corporation, Anaheim, California, by the Ships Parts Control Center. The order provided for 20 converters at a total price of $139,520. The order price was negotiated by the Air Force Plant Representative Office (AIPM). Our exanination was primarily concerned with (1) the reasonobleness of the price negotiated in relation to cost or pricing data available at the date of contract negotiations, (2) the adequacy of the evaluations of the contractor's cost proposal by Government representatives, and (3) the adequacy of the contractor's cost or pricing data submisstons for coWliace with pertinent provisions of the Armed Services Procure- vent Regulation (ASP;). We found thats 1. The proposed order price was about $7,000 higher than indicated by available cost Information at the date of contract negotiations. 2. The contracting officer's waiver of the requiraaent for preaward audit by the Defense Contract Audit Agency (DCAA) us not justified based on available information. 3. Weighted guidelines as set forth in ASPR were not used to establish the negotiated profit objective for this order. 2I &Q0Z

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