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093291 1 (1972-08-07)

handle is hein.gao/gaobacxdg0001 and id is 1 raw text is: 093 9 I UNITED STATES GENERAL ACCOUNTING OFFICE REGIONAL OFFICE ROOM 403 U S CUSTOMHOUSE 610 SOUTH CANAL STREET CHICAGO, ILLINOIs 60607 BEST DOCUMENT AVAILABLE Major General J. C. Maxwell Commander, Armament Development and Test Center Eglin Air Force Base, Florida 32542 Dear General Maxwell: The General Accounting Office has examined into the pricing of two negotiated contracts for the CBU-42/A Wide Area Anti-Personnel Mine (WAAPM) System awarded by the U. S. Air Force, Armament Devel- opment and Test Center (ADTC), Eglin Air Force Base, Florida, to Honeywell, Inc., Minneapolis, Minnesota. Honeywell has produced the WAAPM system since 1967. Our examination was made as part of a continuing review of the pricing of contracts subject to the provisions of Public Law 87-653, effective December 1, 1962, as implemented by the Armed Services Procurement Regulation. The specific contracts included in our review are fixed-price- incentive-fee contract F08635-69-C-0015 and firm-fixed-price contract F08635-70-C-0001. Both contracts contained a clause to provide for a reduction in the contract price for defective cost or pricing data. Our review was directed towards examining into the reasonable- ness of the prices negotiated in relation to cost or pricing data available to Honeywell at the time of contract -0015 price negotiations. With regard to contract -0001, our review was limited solely to cost estimates for scrap and their related effect upon the contract price. We reviewed pertinent records at the contractor's plant and the records of negotiation at ADTC. The Defense Contract Administra- tion Services (DCAS) and the Defense Contract Audit Agency (DCAA), both of which have resident offices at Honeywell, are responsible for contract administration and auditing activities, respectively. 9 1 7- 0?:2?i

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