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PSAD-80-59 1 (1980-07-14)

handle is hein.gao/gaobabatd0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITED STATES i~5 z WASHINGTON, D.C. 20548 JULY 14, 1980 B- 198680 4'- h Honorable Sam Nunn IIlI~~~ United States Senate 112759 Dear Senator Nunn: Subject: tir Force Procurements of are and Repair Parts for the ARC-164 Radi 1(PSAD-80-59) On February 5, 1980, you k. uested that we determine why certain ARC-164 components and parts are procured from the prime contractor, Magnavox Government and Industrial Electronics Company, instead of competitively. According to the Air Force, noncompetitive procurements from Magnavox are necessary to insure reliability and maintainability. In our opinion, the Air Force should have acquired a pro- curement data package and competed ARC-164 requirements sub- sequent to the initial production contract with Magnavox. The ARC-164 radio is used in Air Force, Army, and foreign military aircraft. The initial production contract and subsequent contracts awarded to Magnavox since 1974 totaled about $99 million, and 20,000 radios had been produced as of April 1980. We interviewed Air Force officials responsible for ARC-164 logistics and reviewed pertinent contract, require- ment, and procurement records at Air Force Headquarters, the Pentagon, Washington, D.C.; Aeronautical Systems Division, Wright-Patterson Air Force Base, Dayton, Ohio; and Warner Robins Air Logistics Center, Robins Air Force Base, Warner Robins, Georgia. The Air Force purchased a procurement data package in June 1977, under an option in the initial production contract, which should have provided sufficient detail for other firms to produce the radio and parts and compete for ARC-164 re- quirements. The Air Force maintains, however, that the radio and the main components and parts have to be procured from Magnavox, regardless of the data package, to ensure their reliability. The Air Force initiated a program in April 1972 to develop a new radio for aircraft, subsequently designated (950598) 7