Contract Pricing:

Material Prices Overstated on AN/APG-68 Radar Production Buys

NSIAD-89-33: Published: Dec 15, 1988. Publicly Released: Dec 15, 1988.

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GAO reviewed selected material prices under an Air Force contract for radar systems production to determine whether the contractor complied with a statutory provision requiring it to provide accurate, complete, and current pricing data for the required materials.

GAO found that the: (1) contractor failed to disclose the actual purchase prices for two material parts and made a mathematical pricing error for another part; (2) contractor's noncompliance with the statutory provision resulted in estimated overpricing of $254,399; and (3) contractor planned to resolve the problems associated with the overpricing.

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