Spare Parts Pricing:

Inappropriate Use of Rate Agreements

NSIAD-86-18: Published: Jan 13, 1986. Publicly Released: Jan 13, 1986.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

In response to a congressional request, GAO reviewed spare parts pricing at selected locations to determine if the Department of Defense spare parts initiatives were being followed.

GAO found that: (1) buyers and contracting officers at the San Antonio Air Logistics Center were using rate agreements as a justification for accepting proposed prices without performing adequate price analyses in 13.6 percent of the procurements reviewed; (2) of the 21 contracts reviewed in depth, 2 were overpriced and 1 was being locally manufactured at a significantly lower cost; (3) in each of these cases, the buyer relied on the rate agreements to determine whether the proposed prices were fair and reasonable; (4) three procurements should not have been made; (5) the Air Force has been paying $16,400 for link assemblies that should cost less than $4,000, $317.79 for pan toilets which should cost about $97.94, and $239.79 for pan assemblies that can be manufactured locally for about $160; and (6) the Air Force purchased two panel assemblies although two panels had been in an Air Force warehouse since 1973, and the old panels could easily have been repaired.

Sep 23, 2016

Sep 21, 2016

Sep 7, 2016

Aug 30, 2016

Aug 11, 2016

Jul 22, 2016

Jul 21, 2016

Jul 6, 2016

Looking for more? Browse all our products here