Contract Overpriced and Established Pricing Regulations and Procedures Not Followed

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.