Contract Pricing

GBU-15 Bomb Components Overpricing Gao ID: NSIAD-89-10 November 2, 1988

GAO reviewed an Air Force procurement for components for the GBU-15 Modular Guided Weapon System, to determine whether the contractor complied with the Truth in Negotiations Act and provided accurate, complete, and current cost data.

GAO found that the contractor: (1) did not disclose accurate, complete, and current pricing information for seven materiel items, resulting in contract overpricing of $1,008,854; (2) allegedly orally disclosed lower vendor prices for three materiel items, but could not provide any supporting evidence; (3) agreed that it did not disclose lower available prices for three other materiel items, but did not believe that the nondisclosure resulted in contract overpricing; and (4) agreed that the contract was overpriced for the remaining item.

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