Fort Belvoir, Va. –
Supervisory Auditor Kernather Auguste and Senior Auditor Pearl Wagner of the Lockheed Martin Missiles and Fire Control Resident Office supported negotiations for a contract for the continuation of contractor support for the fire control radar on the Longbow Apache helicopter fleet. Their efforts resulted in savings of $1.5 million.
Instead of a full audit, the team performed an advisory service to assist the purchasing contracting officer(PCO). The contractor’s proposal was revised twice due to the rapidly changing economic situation. However, the team was proactive and kept up with the changes and in turn, updated their results. To keep rapport with the PCO, they consistently kept him informed of issues or barriers encountered by providing weekly progress reports. Thanks to this open communication, whenever obstacles were encountered, the team received assistance in getting needed information.
A day before the contract negotiations on material costs, the contractor increased the proposed costs by $500,000. This increase was accredited to updates to escalation rates as noted in accredited sources and updated cost quotes from major vendors. The team immediately held a meeting with contractor to discuss these changes and conducted their own research to develop advice for the PCO to use during negotiations the next day.
During negotiations, the team was constantly available to assist the PCO, who paused negotiations to call the team at various points for discussions concerning pricing options and the numerous offers and counteroffers. The result was a saving of almost 25 percent of material costs equaling $1.5 million.
On August 3, 2022, the Army Contracting Command – Redstone (ACC-RSA) branch chief thanked the team for the diligent efforts supporting them through the negotiation process, specifically stating:
DCAA team's support was timely and critical to the successful completion of the negotiations. ACC-RSA could not have completed the effort without help of DCAA's expertise. The DCAA team did a fantastic job in negotiation support and helped the Army acquire the services and products at fair and reasonable price. The taxpayer received significant savings from the proposed price and the agreement was reached during a turbulent time of economic inflation and steep supply chain challenges. Kudos to DCAA and thanks again!
The team thanked the PCO and looks forward to working together on future efforts.