GAO Contract Pricing Audits

T-NSIAD-88-45: Published: Sep 7, 1988. Publicly Released: Sep 7, 1988.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO discussed the results of its audits of defense contract pricing to determine whether: (1) prime contractors and subcontractors complied with the Truth in Negotiations Act; and (2) contractor estimating systems were reliable and fully supported. GAO found that: (1) certain defense contracts were potentially overpriced by a total of about $18 million due to inadequate estimating systems and contractors' noncompliance with the act; (2) 1 contractor failed to disclose relevant pricing data on 84 of 144 material items, resulting in $8.4 million in overpricing on two contracts; (3) the Department of Defense (DOD) was unable to recover an estimated $5.4 million because that contractor obtained lower quotations for certain materials after contract negotiations; (4) a subcontractor failed to provide a contractor with its most current pricing data and the contractor did not disclose other material pricing data; and (5) contractors failed to evaluate subcontractors' cost estimates prior to negotiations. GAO also found that: (1) DOD required contractors to establish and maintain adequate estimating systems, disclose their systems in writing, and allow government system reviews; (2) the Air Force required its contractors to develop and maintain historical vendor pricing data and furnish the data to support material prices; and (3) DOD has recovered about $6 million in overpricing.

Sep 20, 2016

Sep 6, 2016

Aug 19, 2016

Aug 12, 2016

Jul 29, 2016

Jul 28, 2016

Jul 13, 2016

Jul 11, 2016

Jun 13, 2016

Looking for more? Browse all our products here