Pricing of Basic Ordering Agreement DAAJ09-88-G-0001, Delivery Order 0053, At General Electric Company-Aircraft Engine Business Group

摘要

During our 'Audit of Spare Parts Pricing Agreements', Project No. 8CE-5001, we found that the General Electric Company had not provided certified cost or pricing data to the Government, when orders exceeding the threshold for such data were issued against Basic Ordering Agreements. The Basic Ordering Agreements contained previously certified unit price lists. We also found potential overpricing on delivery orders which were priced with outdated prices or were not repriced with current cost data. As a result, we audited the pricing of Basic Ordering Agreement DAAJ09-88-G-0001, Delivery Order 0053, to determine whether the Delivery Order was overpriced and the reason for any overpricing. The General Electric Company had sales surpassing $42 billion in FY 1989. The Aircraft Engine Business Group, the largest operating element of the company, serves a broad range of customers, but is primarily involved in the manufacture of aircraft engines and spare parts and in research and development for the U.S. Government. General Electric Company sales to the U.S. Government were approximately $ * and $ * billion for 1988 and 1989, respectively.