ADVISORY REPORT ON EVALUATION OF PRICE PROPOSAL LOCKHEED AIRCRAFT CORP. (LOCKHEED-CALIFORNIA COMPANY) BURBANK, CALIFORNIA CONTRACT NO. SP-1928

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP69B00279R000200130044-2
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: August 16, 2002
• Sequence Number: 44
• Publication Date: June 21, 1966
• Content Type: MEMO

Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130044-2
DEPARTMENT OF THE AIR FORCE
HEADQUARTERS UNITED STATES AIR FORCE
WASHINGTON 25, D.C.
REPLY TO
ATTN OF:
OSA-2318-66
#A-85-66 Suppl. #1
REPLY TO:
Audit Liaison Office
P. 0. Box 8155
S. W. Station
Washington, D. C.
21 June 1966
STATINTL
SUBJECT: Advisory Report on Evaluation of Price Proposal
Lockheed Aircraft Corp.
(Lockheed-California Company)
Burbank, Califo a
Contract No P-1928
STATINTL
1. Paragraph 6 of reference stated, "The ADP rates used by
the contractor and auditor are the rates for 1965 and 1966 as negotiated
in October 1965 for use with this contract." On 6 April 1966 when our
initial report was issued, we were aware of significant differences
between the October 1965 negotiated rates and the book actual rates for
1965. Also, at the October 1965 negotiation, it was agreed that, "1966
rates will be used for forward pricing of minor contracts such as, SP-1928
and other miscellaneous proposals . . . , submitted by 31 December 1965."
letter rates since those rates were the latest negotiated and approved.
The LAC revised proposal of 21 February 1966 totaled
It was not a minor value proposal. However, the initial
audit report amounts were based on use of the October 1965 negotiation
Subsequent to the date of report issuance, more realistic
and current rates have been proposed, evaluated and agreed upon for 1966
forward pricing. These rates plus revision of the October 1965 nego-
tiated rates to the 1965 actual book rates, adjusted for ASPR, Section
XV unallowables, have been agreed upon and incorporated into a revised
contract target price. This supplement confirms the auditor?s acceptance
of the revised target price.
Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130044-2
 STATINTL
Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130044-2
4. For the record, a comparison of the initial evaluation
report and supplemental evaluation report overhead/G & A rates follows:
Evaluation Report
CAC's
Initial
Supplemental
Rate (Hourly) Rates 19
65 1966
1965
1966
Engineering
Manufacturing
G &A
STATINTL
STATINTL
5. The effects resulting from the
to rates is summarized as follows:
Contractor's Negotiated
21 Feb 66 Target and
Revised Proposal Ceiling for
for 7 Units, etc. 7 Units, etc.
Total Estimated Target Cost
Adjustment due to Overhead Rat
Total Estimated Target Cost
Profit
Total Target Price
Total Ceiling Price
(A)
STATINTL
(A)
ARTHUR G. HANLEY
Auditor General Representative (APL)
STATINTL
Approved For Release 2002/09/03 : CIA-RDP69B00279R000200130044-2