Military AirliftC-17 Wing Competition Fair, but Savings Lower Than Air Force Estimates Gao ID: NSIAD-88-3 November 13, 1987
In response to a congressional request, GAO reviewed an Air Force prime contractor's decision to subcontract a major portion of a C-17 wing components procurement rather than make them itself, to determine the: (1) fairness of the competition; and (2) Air Force's analysis of the resulting cost savings.
GAO found that the: (1) prime contractor held a fair and adequate competition using Air Force-approved source-selection procedures; and (2) Air Force overstated its estimates of the savings by $18.8 million because it did not adjust the contractor's costs to account for the winglets and recovery of the material costs incurred prior to competition. GAO also found that the Air Force and the prime contractor agreed that they would: (1) not remove any of the resulting savings from the prime contract; (2) not change contract costs, price, or profits; and (3) place the resulting savings in a separate C-17 account.Recommendations
Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.Director: Team: Phone: