Pricing of a Contract With McDonnell-Douglas

A review was made to determine the reasonableness of production raw material costs of $118,990,080 proposed by McDonnell-Douglas Corporation for the production of 132 F-15 and TF-15 aircraft, aerospace ground equipment, and data. Production material comprises 97 percent of the raw materials required for fabrication of the aircraft. The raw material cost was based on prior aircraft production cost, and the contractor adjusted this cost to reflect economic changes by updating the cost of a sample of 128 high value items from a representative aircraft.