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Contract Pricing: Pricing of F-16 Mid-Life Update Program Contracts

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Report Type Reports and Testimonies
Report Date Sept. 24, 1996
Report No. NSIAD-96-232
Subject
Summary:

The F-16 aircraft mid-life update program is intended to develop and install upgrades to the F-16 fighter aircraft owned by Belgium, Denmark, and the Netherlands, thereby improving the planes' performance. This report discusses (1) if the rates and factors used to price two selected prime contracts were the same as those used to price contemporaneous U.S. government contracts, (2) how Air Force negotiation officials used the Defense Contract Audit Agency's recommendation in negotiating the prime contract prices, and (3) if the materials and subcontract costs included in the prime contract prices were fair and reasonable. GAO also reviewed the pricing of two selected subcontracts.

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