Payments on Air Force Aircraft Maintenance Contracts Violate Cost-Plus-a-Percentage-of-Cost Prohibition

Five aircraft maintenance contracts were examined to evaluate the administration of unscheduled work and the payments for contractor-furnished materials. The five contracts were with E-Systems, Inc. (2 contracts); Hayes International Corp. (2 contracts), and Aero Corp.; they were awarded by the Air Force for programmed depot maintenance and modification of aircraft in the Special Air Mission Fleet and the KC-135, C-130, and F-4 aircraft.