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

LOG IN
LOG IN


104530 1 (1977-11-28)

handle is hein.gao/gaobadxwx0001 and id is 1 raw text is: DOCUMENT RESUME 04530 - (B339,620] Federal Aviation Administration's long Range Radar System ARSR-3. November 28, 1977. 11 pp. + enclosure (3 pp.). Testimony before the House Comwittee on Governeent Operations: Government Activities and Transportation Subcommittee; by Jero-.3 H. Stolarow, D;puty Director, Procurement and Systems Acquisition Div. Issue Area: Federal Procurement of Goods and Services (1900). Contact: Piroc':rement and Systems Acquisition Div. Budget Function: General Government: Other General Government (806) . Organizaticn Concerned: Federal Aviation Administration; Department of Tranasportation; Westinghouse Electric Corp. Congressional Relevance: House Committee on Government Operations: Government ActivitieL and Transportation Subcommittee. The Yederal Aviation Admiristration's (FAA's) acquisition of long range radar systems, ARSR-3, involved a number of problems. The agency lacked a sound s~rategy leading to the award of the production contract for ths system. !t was unclear whether or not a prototype system was really required to demonstrate operational capability of the radar. The prototype contract was prematurely suE,?ended witii limited results obtained. Westinghouse submitted a proposal to build a prototype ARSR-3 radar that was clearly priced below its estimated costs. The FAA permitted Westinghouse to tuy into this program, in effect limiting competition by other gualifi(d contractors. After acceptiug Westinghouse's offer to produce a prototype radar at a loss, the FAA awarded a cost-type contract and did not monitor the costs. As a result, Westinghouse overran the estimated costs and did not deliver a prototype system. The FAA did not independently develop a detailed co:t estimate of the prototype system it planned to purchase. Although the rough estimates indicated a prototype would cost $7.8 million, the contract was awarded to Westinghouse at $3.5 million. Eight months after the contract .s awarded, Westinghouse notified FAA that its cost estimate had iisen about 100%. Tc minimize costs, F7A then reduced the scope of the prototype program and instructed Westinghouse to proceed at a reduced level of effort. The total paid to Westinghouse for the prorotype program was $4 4 million. The FAA stated that no major technical risks remained and they had design drawi.gs suitable for final fabrication. After 35 contract modifications, Westinghouse now has a contract to provide 27 radar units at $51 million. (SW)