REPORT ON REVIEW OF ECP #1987-8 AIRBORNE INSTRUMENT LABORATORY DIVISION OF CUTLER-HAMMER, INC. DEER PARK, NEW YORK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP72B00464R000300040026-1
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: December 9, 2010
• Sequence Number: 26
• Publication Date: December 13, 1965
• Content Type: LETTER

Approved For Release 2010/12/09: CIA-RDP72B00464R000300040026-1
OsA-4-651-65
#1745
REPLY TO:
Audit Liai on Office
P. O. Box 3155
B. W. Station
Wa.;hington, D. C.
1w December 1965
Report on Review of ECP 1987-8
Airborne Instrument Laboratory
Division of Cutler-Hammer? Inc.
Deer Park, New York
Contracting Officer
1. Purpose of Review:
In accordance with the request of the Contracting Officer,
a review wa made of the subject contractor's Co;t plus Fixed Fee proposal
in the amount of 1,185,347, which includes fee of $12 9 1 to supply audio
processors at the MPC and CPC and to s pl.y t.nree (_) remote proce6surs,
M
in accordance with the requirements of
P 3.
i. Scope of Review:
The review consisted of an evaluation of the proposed labor,
overhead and general and administrative expense rates, a verification of
the material costs proposed, a comparison of the labor hours proposed to
the requirements of the ECP and a determination a" to the reasonableness
of overtime premium and other direct charges proposed. The labor hours
proposed at. well a;:, the bill of material submitted _hoold be reviewed for
applicability by technical personnel.
a. Since the combined average labor rate proposed on this
1 EP ($L.17) compares favorably with the overall average labor rate for
effort expended on this, program., the quoting rates utilized by the con-
tractor are considered reasonable for this proposal only.
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b. The overhead and general and administrative rates: pro-
posed are considered som what excessive when compared to the actual in-
curred rates for the year to date, However, Mince the reduction enduing
therefrom would have a minor impact on the fixed fee proposed no adjust-
ment is recommended.
c. The Auejttor reviewed the pricin ; of the. proposed bill
of-material, to purcba,::e orders issued, to catalog prices quoted and to
such other support -a wa~_ made available. Approximately $8,900 out of the
$50,L75 material costs proposed were baed upon engineering estimates.
These items should be reviewed by technical personnel to determine their
rea~_onablene s.
4. Results of Review :
Subject to the coo ents contained in Paragraph ; above, the
contractor's cost; of $172,416 as submitted appear to be reasonable.
W , BARDS
Auditor General Representative
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