The Ogden Air Logistics Center at Hill Air Force Base was cheated out of more than $1 million on missile parts by Rockwell International Corp., according to a report by the U.S. General Accounting Office.
And the GAO is urging Maj. Gen. Robert P. McCoy, logistics center commander, to try to get the money back.Hill Air Force Base spokesman Len Barry told the Deseret News that McCoy has sent a copy of the GAO report to Rockwell to obtain its response to GAO charges, which is due Jan. 20.
"After that, we'll see what action is needed to get a settlement on this," he said.
The apparent overcharge was discovered recently when the GAO investigated whether Rockwell's Missile Systems Command based in Duluth, Ga., had complied with the Truth in Negotiations Act when it negotiated a $38.24 million contract in September 1987 for components of the GBU-15 Modular Guided Weapon System.
That law requires sole-source defense contractors, such as Rockwell, to provide accurate, complete and current price data when it negotiates the cost of contracts. If the law is violated, the government may force the contractor to refund the amount it was overcharged.
The GAO said Rockwell quoted material prices that were too high in its negotiations, not disclosing some lower quotes it had been given by some potential subcontractors. The GAO said some prices were also out-of-date and higher than necessary.
That allowed Rockwell to overcharge the Air Force by a total of $1,008,854 on seven different parts of the weapons system, the GAO report said.
The overcharges included $245,608 on wings, $135,270 on directional vertical gyroscopes, $89,505 on roll gyroscopes, $85,935 on strakes, $77,474 on "clipped control surface," $24,212 on actuators and $4,434 on conduit harness assemblies.
The GAO report said, "Rockwell officials told us they orally disclosed lower vendor prices for three material items (wing, strake and control surface), but could not provide any evidence to support their position.
"Rockwell officials agreed they did not disclose lower available prices for three other material items (gyroscopes and actuators) but do not believe the non-disclo-sures resulted in contract overpricing.
"Rockwell officials agreed that the contract was overpriced for the remaining material item," the conduit harness assembly.