Contract Pricing
Material Prices Overstated in Pershing II Contract Gao ID: NSIAD-87-41 January 30, 1987GAO reviewed an Army contractor's prices to determine whether the contractor complied with the Truth in Negotiations Act in providing accurate, complete, and current cost or pricing data.
GAO found that the contractor failed to update its data to reflect changes in material costs, resulting in overstated prices of $1.2 million, including overhead and profit.