Contract Pricing: Contractors Should Provide Historical Vendor Prices to DOD
NSIAD-89-68
Published: Feb 15, 1989. Publicly Released: Feb 15, 1989.
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Highlights
In response to a congressional request, GAO reviewed the Department of Defense's (DOD) policies for estimating material costs for fixed-price noncompetitive contracts valued at $10 million or more, to determine whether the contractors provided accurate and reliable material estimates.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should direct DOD personnel to revise DOD procurement regulations to require that contractors develop, maintain, and furnish historical vendor pricing data in support of proposed prices. |
Closed – Implemented
In its April 10, 1989, letter to GAO, DOD stated that its response to the report is being coordinated and a full reply will be issued shortly. DOD requested the DAR Council to include guidance issued concerning contractor estimating systems, incorporating the use of historical experience, in its regulation. DAC 88-7 incorporated guidance into DFAR.
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Topics
Contract costsDefense cost controlDefense procurementDepartment of Defense contractorsFixed price contractsIrregular procurementMilitary materielPricing surveysSole source procurementSubcontractors