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PSAD-78-67 1 (1978-01-12)

handle is hein.gao/gaobaawmq0001 and id is 1 raw text is: DOCUMENT RESUhE 04691 - [B0125030] tBeetr±tut [Award and Administration of Vavy Contract for Bmb Suspension Lugs]. PSAD 78-67; B-190918. January 12, 1978. 4 pp. Report to Rep. Marc Lincoln Harks; by Elmer B. Staats, Couptrcller General. Issue Area: Federal Procurement of Goods and Services: Reasonableness of Frices Under Negotiated Contracts and Subcontracts (1904). Contact: Procmrement and Systems Acquisitior Div. Budget Function: National Defunse: Department of Defense - Procurement & Contracts (058). Organization Concerned: Department of the Navy: Navy Ships Parts Ccntrul Center, Mechanicsburg, PA; David B. Lilly Co., Inc.: Delaware Fastener Div. Congressional Relevance: Rep. Marc Lincoln Marks. The Navy's administration of a contract for bomb suspension lags awarded tc the Delaware Pastener Division of David h. Lilly Company, Inc., was reviewed to determine whether the Ships Parts Control Center complied with proc ement regulations in &warding the contract and subsequently allowing late deliveries and whether the Government incurred additional costs because the contractor failed to meet the original delivez. dates. Findimgs/Conclusions: The Delaware Fastener Division submitted the lowest of three bids for the suspension lugs and received the $223,444 centract without further negotiations. A preavard survey indicated that nela,'are Fastener could meet tie contract requirements but that a subcontractor had financial problems. Monthly shipments of 5,000 units were to be made until the total quantity of 37,117 was delivered. The contractor misseO the first two deliveries because of allegedly defective steel .-ceived from suppliers. As of October 31, 1977, Delaware Fastener had only delivered 2,955 cf 7,500 units required under a revised schedule. A contract modification was executed on December 5, 1977, to revise further the delivery schedule. The Ships Parts Control center's actioLs in awarding and administering the contract, including the extension of delivery dates, were reasonable under the circumstances and were in accordance with relevant procurement regulaticns. Little or no additional costs were incurred by the Government because og late deliveries. (RRS)