Allegations Of Insufficient Reimbursement Under The Value Engineering Program V. PLRD-82-57

About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

table,div,span,font,p{display:none}Please click here if you are not redirected within a few seconds.

PLRD-82-57 1 (1982-03-19)

handle is hein.gao/gaobabdbi0001 and id is 1 raw text is:

UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON, D.C. 205A8

POCUIKMEKNT. LOGIITIC,
AM RgDAINL5 DIVISION
PESTRICTED - Fot t be reloemed outside the '
iAccount~eg Office except on tli be s of specific .
Vtile Office of
B-203876 RELEASED MARCH 19,1982

The Honorable Barry M. Goldwater, Jr.
House of Representatives
Dear Mr. Goldwater: 117955

Subject: Allegations of Insufficient Reimbursement Under
the Value Engineering Program (PLRD-82-57)

In your June 23, 1981, letter, you asked us to investigate
whether K.I.M. and Associates, Westlake Village, California, is
entitled to a monetary award under the Value Engineering Program.
K.I.M. developed a modification kit that increases the life of the
pressure vacuum pump used in certain Navy ground support equipment.
K.I.M. submitted this pump improvement idea in a Value Engineering
Change Proposal (VECP) to PRD Electronics, Syosset, New York, a
Division of Harris Corporation, the prime contractor with the Navy
for this equipment.

A K.I.M. official alleged that PRD Electronics changed K.I.M.'s
VECP to an Engineering Change Proposal (ECP) that resulted in PRD
receiving over $500,000. He also alleged that K.I.M. did not
receive any money.

Our review disclosed that:

--K.I.M. is not entitled to a monetary award under the Value
Engineering Program since at the time it had no contract
with either PRD Electronics or the Government, a requirement
of the Defense Acquisition Regulation for participation in
the Program.

--PRD Electronics changed K.I.M.'s VECP to an ECP and was
authorized to receive $246,402 from the Navy for 150 K.I.M.
modification kits and other related work.
--K.I.M. received $135,169 of the amount.paid PRD Electronics
under the ECP for the modification kits.

SCOPE OF REVIEW

In responding to your request, we interviewed PRD officials
and examined their documents on the value engineering issue,
obtained further explanations and documentation from a K.I.M.

(942055)
,,,,,,,,,,/