Contract Pricing:

GBU-15 Bomb Components Overpricing

NSIAD-89-10: Published: Nov 2, 1988. Publicly Released: Nov 2, 1988.

Additional Materials:


Paul F. Math
(202) 275-4587


Office of Public Affairs
(202) 512-4800

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.

Recommendation for Executive Action

  1. Status: Closed - Implemented

    Comments: The Department of Justice has notified the contractor of its intent to pursue recovery through the False Claims Act. The Department of Justice and the contractor agreed to a $5.1 million settlement based on this report and NSIAD-89-125.

    Recommendation: The Commander, Ogden Air Logistics Center, should initiate action to recover the overstated materiel prices from the contractor.

    Agency Affected: Department of Defense: Department of the Air Force: Air Force Logistics Command: Air Logistics Center, Hill AFB, UT


Explore the full database of GAO's Open Recommendations »

Oct 16, 2017

Oct 5, 2017

Sep 29, 2017

Sep 28, 2017

Sep 27, 2017

Sep 26, 2017

Sep 19, 2017

Sep 12, 2017

Looking for more? Browse all our products here