Examination of Possible "Buy-In" by Garrett AiResearch

PSAD-77-73: Published: Feb 16, 1977. Publicly Released: Sep 24, 1979.

Additional Materials:


Office of Public Affairs
(202) 512-4800

The AiResearch Division of the Garrett Corporation's practice of "buying-in" on contracts for the production of auxiliary power units was investigated. The investigation was limited to two subcontractors between Garrett and McDonnell Douglas Corporation under the F-15 contract.

Garrett submitted bids lower than their estimated costs on the F-15 subcontract. Garrett admitted making what it referred to as a $3 million "investment" in the F-15 program. Whether Garrett has followed a consistent pattern of buy-ins cannot be determined by examining two subcontracts, but a consistent pattern can be inferred from statements Garrett made in court affadavits. McDonnell officials were aware that Garrett's price was less than expected costs and suspected that Garrett was investing in the program. It is evident that McDonnell recognizes the investment concept. Before the initial procurement of the F-15 components involved in this investigation, competitive bids were solicited from many suppliers. The selection of Garrett was based on technical superiority as well as lower prices. (RRS)

Mar 30, 2016

Feb 25, 2016

Dec 17, 2015

Dec 10, 2015

Oct 8, 2015

Jul 16, 2015

Jul 10, 2015

Jun 24, 2015

May 27, 2015

Apr 29, 2015

Looking for more? Browse all our products here