Contract Pricing

Overpricing of AWACS Aircraft Color Monitor Subcontracts Gao ID: NSIAD-88-28 October 22, 1987

GAO reviewed a subcontractor's pricing for an Air Force contract for aircraft color monitors.

GAO found that the subcontractor did not provide the primary contractor with accurate, complete, and current cost or pricing data, since the: (1) primary contractor overstated its proposed price by $192,222 after negotiating with the subcontractor; (2) subcontractor withheld information regarding historical pricing data in its price negotiations; and (3) subcontractor improperly cited an audit report, which was based on purchase after the price agreement between it and the primary contractor to resolve pricing. GAO believes that the Air Force should initiate action to recover funds from the primary contractor.



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