Comptroller General Reports to Congress on Audits of Defense Contracts

Kennedy, John R., Assistant General Counsel for Military Construc-
tion, Office of Chief of Engineers.

Luevano, Daniel M., Assistant Secretary of the Army (Installations

and Logistics); accompanied by Brig. Gen. John Goshorn, Director

of Procurement; and Brig. Gen. H. H. Miley, Director of Procure-

ment and Production, Headquarters, U.S. Army Materiel Com-

Moore, William H., vice president, Government products division,
Electronic Industries Association; accompanied by Loven K.
Olson, counsel; and Richard Godown, manager, Government
procurement relations department...

Neffner, Howard W., vice president of Government contracts, the
Boeing Co., accompanied by Victor F. Knutzen, controller___
Noll, William T., vice president and general manager, Honeywell, Inc.,
Aeronautical Division; accompanied by Kenneth Figge, chief

accountant_.

Roe, Austin G., house counsel, Melpar, Inc...

Rosen, Harry, auditor, Army Audit Agency.

Staats, Elmer B., Deputy Director of the Bureau of the Budget;

accompanied by Arthur B. Focke, General Counsel; Ellis H.

Veatch, Chief, Military Division; and George Mullins, Chief,

Property and Supply Management Branch...

Weitzel, Frank H., Assistant Comptroller General of the United
States; accompanied by Robert F. Keller, General Counsel;
Ellsworth H. Morse, Jr., Director, Accounting and Auditing Policy
Staff; and Charles M. Bailey, Deputy Director, Defense Accounting
and Auditing Division_..

Letters, statements, etc., submitted for the record by-

Abbadessa, John P., Controller, Atomic Energy Commission:

Letter from John V. Vinciguerra to Hon. William L. Dawson,

dated November 3, 1964, re negotiations with Alcoa on volun-

tary price adjustments_

Page

253

223

481

452

473

575

Letter from R. E. Hollingsworth to S. T. Gustine, dated October
21, 1964_..

219

220

221

Letter from John W. Douglas to Atomic Energy Commission,

dated March 22, 1965, re Wyman-Gordon case-

Memorandum of understanding between AEC and Alcoa re pric-

ing of negotiated procurements, dated February 5, 1965-1

Bannerman, Graeme C., Assistant Secretary of the Navy (Installa-

tions and Logistics):

Letter from L. C. Malley, division president, Pratt & Whitney

Aircraft to Joseph Campbell, February 5, 1964.

Citation of ASPR sections requiring better documentation of

negotiations_

313

321

September 20, 1963-Westinghouse contingency case in Navy

nuclear propulsion contract _ _

337

350

Public Law 87-653-.

Letter from the Comptroller General to the Assistant Secretary

of Defense (Installations and Logistics) dated May 14, 1964, re

ASPR provisions on securing cost of pricing data pursuant to

Public Law 87-653---

Letter from Assistant Secretary of Defense (Installations and

Logistics) to the Comptroller General dated June 17, 1964, re

ASPR provisions on securing cost or pricing data pursuant to

Public Law 87-653..

351

358

Bendix Corp.: Letter to Chairman Holifield with statement for the
record by A. P. Fontaine, chairman, dated June 15, 1965_--_-.

Callaway, Hon. Howard H., a Representative in Congress from the

State of Georgia:

567

Excerpt from Lockheed testimony-

654

Letters, statements, etc.—Continued
Campbell, Hon. Joseph, Comptroller General of the United States:
Excerpt from section 312 of the Budget and Accounting Act of 1921.
Excerpt from section 111(d) of the Accounting and Auditing Act of
1950_.

Excerpt from section 111(a) of the Accounting and Auditing Act

of 1950_

Excerpt from 65 Stat. 700_

Page

Date of completion of work on Andrews Air Force Base contract

by Lane Construction Co_____

GAO reports on defense matters as compared to reports on civil

matters..

Statement for the record re effect of two GAO reports on subse-

quent business of companies reported on..

Date when practice of circulating GAO draft reports for comment

was begun...

141

Statement on a GAO report in which Defense contract methods

Statement re approvals of all scheduled contract audits in
Washington___

Statement containing comments on the testimony of Assistant
Secretary of Defense Paul R. Ignatius of May 10, 1965_-_-

Carr, John F., general counsel, Grumman Aircraft Engineering Corp.:

Letter for the record with statement re added costs arising from

certain GAO recommendations----

Charles, Robert H., Assistant Secretary of the Air Force (Installations

and Logistics):

Excerpts from GAO report B-146732, dated January 7, 1965---

Statement for the record on extent of Air Force access to Alcoa

cost or pricing data___

Statements for the record on contracts in GAO report on Air
Force-Cessna T37 contracts (B-146918).

520

366

382

386, 388

Statement for the record re status of payments in Boeing KC-135
contracts cited in GAO report B-146717, dated May 25, 1964__
Quotation from a statement by the Secretary of Defense re
deficiencies in DOD due to human error_

Dahlin, Douglas G., attorney, Military Operations Subcommittee:
Excerpts from GAO report B-118695, February 7, 1964 re Melpar
subcontract on B-58 system..--

Derr, Charles I., senior vice president, Machinery & Allied Products
Institute: Full text of prepared statement for the record_-

Douglas, John W., Assistant Attorney General, Civil Division, De-

Excerpt from Senate Report No. 1884, 87th Congress, 2d session..

Excerpt from 32 Code of Federal Regulations, section 3.807-1__

Letter dated June 7, 1965 to Chairman Holifield re comments on

matters referred to in testimony.

Ford Motor Co.: Letter from Fred G. Secrest, vice president-con-

troller, to Chairman Holifield with statement for the record, dated

June 18, 1965---

Hannah, Paul F., Esq: Full text of prepared statement for the record.

Heflin, William ́H.,` president, Western Electronic Manufacturers

Association:

Except from a letter from the Comptroller General to Hewlett-

Packard Co., dated January 18, 1962-

Full text of prepared statement for the record.

Holifield, Hon. Chet, a Representative in Congress from the State of

California, and, chairman, Military Operations Subcommittee:

Letter from Hon. Joseph Campbell, Comptroller General of the
United States, to Hon. Chet Holifield, May 7, 1965, re GAO
reports referred to the Department of Justice. -
Legal memorandum on duty of cost-type contractor to exercise
due care in making reimbursable expenditures, prepared by the
Office of General Counsel, General Accounting Office-

Letter from John L. Howland, assistant general counsel, West-

inghouse Electric Corp., to Hon. Chet Holifield, June 23, 1965-

120

128

362

Letters, statements, etc.—Continued

Holifield, Hon. Chet.-Continued

Statement for the record submitted by Westinghouse Electric
Corp. re chronology related to submission of brief in Technical
Data Package case-

Page

315

Pricing agreement between Honeywell, Inc. and DOD/NASA
re GG-49 gyroscopes, July 24, 1964.

479

Text of statement printed in Congressional Record of July 7, 1965,
re retirement of Comptroller General Joseph Campbell..
Horner, H. M., chairman, United Aircraft Corp.:
Prepared statement for the record...

573

434

Comments on GAO reports dealing with contracts held by United
Aircraft Corp.

438

Newspaper stories on GAO reports related to United Aircraft
Corp..

442

Ignatius, Paul R., Assistant Secretary of Defense (Installations and

Logistics):

Statement on the Defense Contract Audit Agency.

Except from statement of Secretary of Defense McNamara re
deficiencies in DOD due to human error__

Except from DOD policy on seeking voluntary refunds.

Keller, Robert F., General Counsel, General Accounting Office:

Excerpt from title 31, United States Code, section 74..

Excerpt from title 41, United States Code, section 322.

Statement for the record on type of breach of contract GAO will

take exception to---

Statement re number of contract cases handled by the Office of

General Counsel, GAO 1960–64__

Luevano, Daniel M., Assistant Secretary of the Army (Installations

and Logistics):

Statement re GAO reports on Army matters..

Statement re reviews conducted by Army procurement manage-

ment review teams__

Table of comparative listing of GAO-reports versus Army

Statement re difference between effect of GAO recommendations

in Lane and Raytheon cases..

258

262

265

568

Statement re General Electric Co. machinegun parts case B-
146883_

Letter from Maj. Gen. F. W. Boye, Jr., to Chairman Holifield

dated June 23, 1965, re notices of exception in Army cases..

Martin Marietta Corp.: Letter to Chairman Holifield with statement
for the record by George M. Bunker, chairman, dated June 9, 1965-
National Association of Wholesalers:

Statement for the record of William C. McCamant, director,
public affairs, dated June 3, 1965...

564

Letter from William C. McCamant to Chairman Holifield dated

July 13, 1965__

1076

National Electronic Distributors Association, Inc.: Statement for the
record by Gail S. Carter, executive vice president, dated June 2,
1965_.

566

National Security Industrial Association:

Statement for the record re GAO contract audit reports.
Letter from R. N. McFarlane, executive director, NSIA, to the
Comptroller General dated May 21, 1965, re publication of
proprietary data by GAO__

559

Neffner, Howard W., vice president of Government contracts, The

Boeing Co.:

Letter from William N. Conrardy, GAO Seattle Regional Man-

ager, to V. F. Knutzen, controller, The Boeing Co., dated

September 28, 1964.

Letter to Chairman Holifield dated June 8, 1965, containing

comments on the Conrardy letter...

Noll, William T., vice president and general manager, Honeywell, Inc.
Aeronautical Division: Letter to Chairman Holifield dated July 10,
1965___

563

462

465

1073

Letters, statements, etc.-Continued

Roback, Herbert, staff administrator, Military Operations Sub-

committee:

Excerpts from Defense Department response re Servomechanisms

report...

Excerpts from reply of Comptroller General to Chairman William

Dawson re Servomechanisms case..

Letter from the Comptroller General to Lockheed Missiles &

Space Co. dated January 7, 1965, re removal of exceptions in

B-146948___.

Excerpt from GAO report B-133340 re NASA orbiting solar

observatory project..

Excerpt from GAO report B-114878, re large surface ship reactor

and land-based prototype project---.

Letter from Deputy Secretary of Defense Cyrus Vance to Senator

George McGovern dated June 22, 1964, re unrepresentative

nature of GAO reports.

Excerpt from GAO report on Chrysler case, B-146873-

Memorandum for the Assistant Secretary of the Army from Army

Audit Agency, dated May 24, 1965, re chronology of audit

actions in Chrysler case..

Citation of Supreme Court case re payments by Army.

Excerpt from GAO report B-146901, re Raytheon Hawk missile

Excerpt from letter from Charles J. Hitch to Chairman Dawson,

dated March 28, 1964, re Westinghouse technical data package

312

case..

Letter from Lawrence E. Hartwig, Chairman of the Renegotiation

Board, to Chairman Dawson, dated October 30, 1963; re GAO

report B-118763 on Brown-Raymond-Walsh joint venture on

Spanish bases__

Excerpt from letter from Air Force Director of Legislative Liaison

to Chairman Dawson re GAO report B-146854 (Fairchild cam-

era case)__

Excerpt from Air Force status report on Fairchild case.

Excerpts from GAO report B-125071, dated July 31, 1964.-.

Excerpt from Senate Report 603, 82d Congress__

Excerpt from comment by member of House Appropriations
Committee during February 11, 1964, hearings re Melpar case.

Roe, Austin G., House Counsel, Melpar, Inc.-

Letter from Frank W. Davis, vice president, Convair Division of

General Dynamics Corp., to E. M. Bostick, president, Melpar,

Inc., dated March 30, 1961_.

554

Statement by Melpar, Inc. re GAO report B-118695 of January
1964___

555

Letter to Chairman Holifield dated July 16, 1965.
Rosen, Harry, Auditor, Army Audit Agency: Memorandum by Mr.
Neuman, Army Audit Agency, dated December 12, 1963..
Staats, Elmer B., Deputy Director, Bureau of the Budget:

1074

241

Excerpt from statement by President Johnson of May 2, 1964
re attention to GAO reports.

173

Bureau of the Budget Circular No. A-50, dated April 1, 1959.

Bureau of the Budget Circular No. A-71, dated March 6, 1965--

Weitzel, Frank H., Assistant Comptroller General of the United

States:

Letter from Joseph Campbell to Chairman Holifield dated June

14, 1965, re criteria for audit selection..........

Excerpt from instructions to budget examiners re attention to

GAO reports--