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Contract Pricing: Material Prices Overstated on T-56 Engine Contracts

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Report Type Reports and Testimonies
Report Date Aug. 26, 1986
Report No. NSIAD-86-156
Subject
Summary:

GAO reviewed six Air Force T-56 aircraft engine contracts to determine if the contract prices were fair and reasonable, specifically whether the contractor provided accurate, complete, and current cost or pricing data.

GAO found that the contractor submitted inaccurate and outdated cost pricing databased on erroneous foreign exchange rates for two foreign-made engine parts. GAO believes that the Air Force should take action to recover the overpayment from the contractor.

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