Major aircraft manufacturer

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Reference no: EM131133729

It is 2009; North American Aviation, Inc. (NAA), a major aircraft manufacturer, is bidding on a U.S. Government contract for 50 F-20 drone aircraft. NAA’s proposal for the total program is $40,000,000. Proposal plans call for two major subcontractors to be involved, both electronic specialists. Photo, Inc., who will furnish the photographic equipment, has submitted a bid of $12,000,000, for the camera equipment. Autonetics, Inc., a guidance specialist, has submitted a bid of $4,300,000 for the guidance equipment for the aircraft. A subcontractor to Photo, Inc., Lenses Supreme (a second tier subcontractor), has submitted a bid in the amount of $700,000. A subcontractor to Autonetics, GPS, Inc. (a second tier sub), has submitted a proposal to Autonetics for $600,000. The contracting officer on the program has had previous experience with GPS. With Agency head approval, The C.O. has specified that cost or pricing data will be required from GPS, although they don’t reach the designated threshold of $650,000. Under current regulations, for each of the companies mentioned above, describe which will or will not be required to submit cost or pricing data to the Government, and give the reasons for each conclusion.

Reference no: EM131133729

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