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B-173788 1 (1972-03-03)

handle is hein.gao/gaobabkpi0001 and id is 1 raw text is: RESTCTED - Rit to be r.eessd oVtolde the Seneral AceounUWS GfftOcept~I) on,,Uie h~si' of specific apvproval, DS~O~ by theb othes of Congr JRAUS, COMPTROLLER GENERAL OF H n ST~ WASHINGT . 248 Oil RELEASED B-173788 ' Dear Mr. Teague: M 3 This is in response to your letter of July 27, 1971, 2 2 supplemented by your letter of August 5, 1971, transmitting statements made by the Standard Manufacturing Company, Inc., Dallas, Texas, reprding invitation for bid F41608-69-B-0190, which resulted inlAir Force contract F41608-69-C-689 9 for the production of1T4AJ' alia1- S 1.tores Lift Truck j This advertised, fixed-price contract was awarded to the Tar Heel Engineering and Manufacturing Company, Spring Hope, North 2 Carolina, in December 1968 by the San Antonio Air Materiel .. Area, Kelly Air Force Base, Texas. We, were able to confirm many of the statements of the Standard Manufacturing Company, Inc., regarding the handling and administration'of this contract. As we advised your of- fice, however, we 1elieve that the selling of lift trucks be- longing to the Air Force for export to a foreign government by the contractor and a questionable increase in the price of the contract are matters for consideration by the Department of Justice. To not jeopardize that Department's investiga- tion, it was agreed with your office that these matters would not be included in this report but would be referred to the Department of Justice by us. Originally this contract was for 81 MJ-l Aerial Stores Lift Trucks, at $6,667 each, or a total price of $539,999. Subsequent modifications to the contract increased the number of lift trucks to 114 and the total price to $917,500. Modi- fications to the lift trucks were considered by the Air Force to be extensive enough to change the official designation of the trucks to A/S32K-3. Ou inquiry included an examination of pertinent records at the procuring agency, the San Antonio Air Materiel Area; the administrative and paying agency, the Defense Contract Administration Services Region, Atlanta, Georgia; and the plant of the contractor, the Tar Heel Engineering and Manu- facturing Company. The contractor voluntarily provided us with records of its commercial business that were pertinent to our examination. We also interviewed officials at each of these locations who were responsible for the matters we re- viewed. SW