Contract Pricing:

Overpricing of X-1100 Transmission Contracts

NSIAD-87-27: Published: Jan 9, 1987. Publicly Released: Jan 9, 1987.

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GAO provided information on whether a contractor complied with the Truth in Negotiations Act by providing accurate, complete, and current cost or pricing data for three Army contracts for X-1100 transmissions for M-1 tanks.

GAO found that: (1) the contractor provided parts, at more than cost, that it improperly exempted from the act's requirements, resulting in 1981 through 1983 proposals with overstated prices of $341,871, including overhead and profit; and (2) this overstatement led to overpriced contracts during the same period. GAO believes that the results of its review provided a basis for the Army to initiate action to recover these funds from the contractor.

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