United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1996-04-17 monographic deposited born digital 31 p. GA 1.13:NSIAD-96-48 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-96-48 P0b002ee1803a18fe f:ns96048 DGPO 2010-08-12 2011-03-28 GAOREPORTS-NSIAD-96-48 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-96-48 NSIAD-96-48 Spare parts Military aircraft Air Force procurement Procurement regulation Overpayments Military cost control Equipment contracts Aircraft components Contract monitoring C-17 Aircraft Letter Report NSIAD F33657 Pursuant to a congressional request, GAO reviewed the pricing of certain spare parts for the C-17 aircraft, focusing on those spare parts that experienced significant price increases when the contractor decided to produce them in-house rather than purchase them from outside vendors.<p/>GAO found that: (1) the Air force paid higher prices for 33 selected spare parts formerly procured under subcontracts; (2) the costs of manufacturing spare parts are 4 to 56 times higher when the contractor began producing its parts in-house; (3) the contractor's use of outdated labor variance factors in developing proposed costs resulted in its overstating the costs of 37 spare parts by $117,000; (4) the contractor earned higher profits than warranted because the contracting officer based the profit objectives on a firm, fixed-price contract, but later negotiated prices for spare parts, which should have reduced the contractor's risk and profit margin; and (5) the Defense Contract Management Command recovered $182,000 from the contractor for overpriced parts. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-96-48/html/GAOREPORTS-NSIAD-96-48.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-96-48/pdf/GAOREPORTS-NSIAD-96-48.pdf GAO/NSIAD-96-48 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-96-48 Letter Report GAO/NSIAD-96-48; C-17 Aircraft: Cost of Spare Parts Higher Than Justified; Spare parts Military aircraft Air Force procurement Procurement regulation Overpayments Military cost control Equipment contracts Aircraft components Contract monitoring C-17 Aircraft