Review of a Contract for Mobile Radio Sets for the Army
Highlights
A review of the contract for AN/PRC-77 mobile radio sets awarded by the Army to E-Systems, Inc., showed that, although the Army accepted a GAO recommendation that the option for additional radios in the basic contract with E-Systems not be exercised because of defects in the way the basic contract was awarded, the Army subsequently modified the contract several times, significantly increasing the number of radios procured. The additional radios added to the basic contract were for delivery under foreign military sales. For each of these sales, the foreign government had directed sole-source procurement from E-Systems. No U.S. Government financing or aid was directly or indirectly involved in any of these foreign sales.