Air Force Should Recover Excess Costs of Prior F-15 Contracts and Take Action To Save Costs on Future F-15 Contracts
PSAD-80-4
Published: Oct 24, 1979. Publicly Released: Oct 24, 1979.
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Highlights
A review was made to determine the reasonableness of the production material costs accepted by the Air Force Aeronautical Systems Division for the production of 108 F-15 and TF-15 aircraft. The fixed-price incentive contract was awarded in 1977 to McDonnell Douglas Corporation at a negotiated target price of $789,053,670.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of Defense | The Secretary of Defense should take action to ensure that the Aeronautical Systems Division considers the information presented, including any other information, and determine if the government is entitled to a price adjustment. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
| Department of Defense | The Secretary of Defense should ensure that the Aeronautical Systems Division reviews production material costs proposed by the contractor and accepted by the Air Force for the fiscal year 1978 acquisition to determine whether adjustment of the contract price is appropriate. |
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
|
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Topics
Air Force procurementAircraftAircraft industryCost analysisCosting errorsDefense cost controlDepartment of Defense contractorsFixed price contractsNegotiated procurementAircraft acquisition program