Survey of the Pricing of Noncompetitive Contracts Over $100,000 Awarded by Selected Civil Agencies

Gao ID: 102329 May 10, 1977

The pricing of a noncompetitive contract for rocket booster equipment for a space shuttle awarded to Eldec Corporation by the National Aeronautics and Space Administration was reviewed.

The contract price was overstated by at least $65,000 for two parts because (1) the formula Eldec used to compute proposed labor hours overstated the hours required, and (2) Eldec did not use current, complete, and accurate data when computing proposed magnetic assembly hours as certified at the time of negotiation. Had such data been provided, the contracting officer would have had a sound basis for negotiating a lower contract price.

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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