Prices Paid for Supply Items Purchased by Contractors That Operate and Maintain Tankers for the U.S. Navy's Military Sealift Command

NSIAD-84-90: Published: Apr 13, 1984. Publicly Released: Apr 13, 1984.

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Pursuant to a congressional request, GAO reviewed the procedures used by the Navy's Military Sealift Command (MSC) to reimburse 2 contractors for maintaining and operating tankers. GAO also investigated allegations that MSC was overbilled for maintenance and repair items for the tankers.

GAO found no instances of overpricing or purchases of unneeded items. In addition, GAO found that MSC review procedures provide reasonable assurance that contractors do not use inefficient or wasteful practices. GAO also determined that noncompetitive purchases made by the contractors were reasonable.

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