Contract Pricing:

Overpriced B-52 Bomber Avionics Subcontract

NSIAD-88-38: Published: Nov 30, 1987. Publicly Released: Nov 30, 1987.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO reviewed an Air Force subcontractor's pricing practices for the Offensive Avionics System/Cruise Missile Integration Program to determine whether it provided the prime contractor with accurate and complete cost data as required by the Truth in Negotiations Act.

GAO found that: (1) the subcontractor did not provide the prime contractor with accurate and complete data, which caused the prime contractor to overstate its contract costs by about $644,601; (2) the subcontractor did not inform the prime contractor of its plan to purchase certain items from another vendor at a reduced price; (3) the subcontractor failed to inform the prime contractor of its decision to purchase about 50 percent of the parts it had planned to make; (4) although the purchase order prices on the parts were significantly lower than its proposed prices, the subcontractor did not reduce its original price; and (5) although the subcontractor did not admit any liability for the overpricing, it agreed to repay any overdue amount.

Nov 5, 2018

Oct 25, 2018

Sep 28, 2018

Sep 20, 2018

Sep 17, 2018

Sep 12, 2018

Sep 5, 2018

Aug 30, 2018

Aug 27, 2018

Aug 15, 2018

Looking for more? Browse all our products here