Contract Pricing

Overpricing of Joint Cruise Missiles Automatic Test Equipment Gao ID: NSIAD-89-9 October 24, 1988

GAO reviewed a Navy contract for automatic test equipment to determine whether the contractor complied with the Truth in Negotiations Act by providing accurate, complete, and current cost data.

GAO found that the contractor overstated the contract price by $1,239,361 because: (1) the subcontractor did not provide it with the most current pricing information for materials; and (2) it did not use the most current pricing information it had for five power management centers.

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.

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