Pricing of Noncompetitive Contracts Subject to the Requirements of the Truth-In-Negotiations Act: A Summary of Reports Issued in Fiscal Year 1971

Abstract

The Truth-in-Negotiations Act of 1962, Public Law 87-653, provides the Government with safeguards against payment of higher prices because of overstatements of costs used in negotiations for noncompetitive procurements. Noncompetitive contract awards by the Department of Defense (DOD) averaged about $23 billion annually for fiscal years 1968, 1969, and 1970. Since enactment of the law, the General Accounting Office (GAO) has continuously examined its administration by DOD, particularly the reasonableness of the costs proposed by contractors and accepted by the Government. The objective of these examinations is to identify the causes of any overstated estimates and to suggest corrective action. This report summarizes 23 reports that GAO issued to agency officials and contractors during fiscal year 1971 on the pricing of selected noncompetitive contracts.

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Document Details

Document Type
Technical Report
Publication Date
Oct 14, 1971
Accession Number
AD1118818

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Human Systems
  • Weapons Technologies

DTIC Thesaurus Topics

  • Air Force
  • Congress
  • Contract Administration
  • Contractors
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Department Of Defense
  • Governments
  • House Of Representatives
  • Law
  • Negotiations
  • Personnel Management
  • Procurement
  • Radar Components
  • United States

Readers

  • Defense Financial Management and Audit.
  • Economics