Air Force Procurements of Spare and Repair Parts for the ARC-164 Radio

Gao ID: PSAD-80-59 July 14, 1980

The ARC-164 radio is used in Air Force, Army, and foreign military aircraft. The initial production contract and subsequent contracts awarded to Magnavox since 1974, have totaled about $99 million, and 20,000 radios have been produceed as of April 1980. In 1977, the Air Force purchased a procurement data package under an option in the initial production contract, which should have provided sufficient detail for other firms to produce the radio and parts and compete for ARC-164 requirements. GAO was requested to determine why certain ARC-164 components and parts are procured from the prime contractor instead of competitively.

Certain ARC-164 components and parts are procured noncompetitively on the grounds that procurement from Magnavox insures reliability and maintainability. Since the procurement data package should provide sufficient detail for other firms to produce identical components and parts, as well as radios, GAO believes that the Air Force should have acquired the procurement data package and competed ARC-164 requirements when the final order for radios was issued under the initial production contract and before the second contract was awarded to Magnavox.

Recommendations

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