Pricing of Subcontracts Awarded to Aeronca by Grumman

PSAD-79-45: Published: Mar 12, 1979. Publicly Released: Mar 12, 1979.

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A review of a subcontract awarded to Aeronca, Inc., by Grumman Aerospace Corporation was conducted as part of a nationwide survey of the pricing of noncompetitive subcontracts awarded under the Department of Defense negotiated noncompetitive prime contracts.

Several segments of the subcontract were found to be overpriced by approximately $280,000 because Aeronca did not disclose current, complete, and accurate cost or pricing data before negotiations.

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