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GAO reviewed a contract which was awarded to Raytheon Company by the Federal Aviation Administration as part of a nationwide review of the pricing of negotiated noncompetitive contracts awarded by civil agencies. The contract provided for the purchase of multiple pieces of contract-related equipment and revisions of test procedures and miscellaneous documentation. The objective of the review was to determine whether Federal Procurement Regulations were followed in negotiating the contract price and whether the contract price negotiated was reasonable in relation to cost or pricing data available to the contractor at the time of contract negotiation.

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Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Transportation 1. The Secretary of Transportation should (1) emphasize to contracting officials the importance of established regulations in obtaining, reviewing, and using cost or pricing data in negotiating noncompetitive contract prices and documenting contract negotiations files; and (2) require the contracting officer to consider this information presented in this report along with any other pertinent information and determine if the Government is entitled to a contract price reduction.
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