F-16 Program:

Reasonably Competitive Premiums for European Coproduction

NSIAD-90-181: Published: May 14, 1990. Publicly Released: Jun 18, 1990.

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Pursuant to a congressional request, GAO reviewed an aerospace contractor's procedures to calculate reasonably competitive premiums for the F-16 Multinational Fighter Program.

GAO found that the: (1) contractor used reasonable methods, suitable data, and accurate computations in setting the premium for those components; (2) contractor's calculations did not overstate premiums or prevent European subcontract proposals from being reasonably competitive; and (3) contractor adequately documented production hours, labor rates, support costs, domestic and European purchase order values, cost estimating methodology, and other factors it used to calculate the three premiums.

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