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092952 1 (1971-04-20)

handle is hein.gao/gaobacwve0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE CCo ROOM 7054, FEDERAL BUILDING 300 NORTH LOS ANGELES STREET ½ * Los ANGELES, CALIFORNIA 90012 General H. A. Miley, Jr. Commanding General 111 Ill lllill U. S. Army Materiel Command jI||ji |1||1lillilllII Washington, ). C* 20315 LM092952 Dear General Miley: Enclosed is our report on the pricing of MI25AI boosters and M48A3 fuses purchased from the Electronic Instrumentation Division, Lear Sie Ier, Inc., Anaheim, California, by the U. S. Army Ammunition Procurement and Supply Agency (APVA), Joliet, Illinois. Lear Siegler and APSA vere kept informed of our pricing questions during the course of our review. On March 30 and 31, 1971, we discussed our findings with officials of APSA and have considered their views in preparing this report. During our review ve also noted that the contractor experienced a cost underrun of about *1,O0 on contract DAAAO9-*9--0103. This contract was awarded by APSA on September 13, 1968, and was a follow-on to the booster contract discussed in this report. Although we did not review the pricing of contract -0103 ve suggested to the Defense Contract Audit Ageney, Los Angeles Region, by letter dated January 28, 191 that they mirht vish to consider it in future pricing revievs of contracts awarded under Public Law 87-(53. We understand that they are phaning to look into the pricing of this contract in the near future. We believe your evaluation of these matters vill confirm the need for action. Pe would appreciate receiving your comments and being advised of any action you propose to take. Sineerely yours, 9. L. Krieger it . KIEEB, Pegional Manager Enclosure

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