Pricing of Purchase Order R60967

Gao ID: 108090 November 16, 1978

A review was made of the pricing of a purchase order awarded to Hughes Aircraft Company by Bell Helicopter Company under an Army contract. This was part of a survey of the reasonableness of the pricing of noncompetitive negotiated subcontracts under Department of Defense prime contracts. The reasonableness of the pricing could not be determined because Hughes had failed to retain certain records used in preparation of forward pricing rates at the time of the negotiations of the subcontracts. Consequently, Hughes was in violation of a Defense Acquisition Regulation relating to records retention.



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