Better Navy Management Of Shipbuilding Contracts Could Save Millions Of Dollars V. PSAD-80-18

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PSAD-80-18 1 (1980-01-10)

handle is hein.gao/gaobabacj0001 and id is 1 raw text is:

BY THE COMPTROLLER GENERAL it (247#1

Report To The Congress

OF THE UNLTED STATeS

Better Navy Management

Of Shipbuilding Contracts

Could Save Millions Of Dollars

Changes to any shipL1-ilding program can num
her in the thousands and increase the price
of shil)s by hundreds of millions of dollars.
The Navy makes formal changes by modifying
a shipbuilding contract in writing. Construc
tive changes result from Navy action or in
action which causes the shipbuilder to do
a(htitional or different work than specified in
the contract. If the Navy and the shipbuilder
agree that a constructive change occurred be-
cause of the Navy, it can become a formal
change. If they disagree, it can form the basis
for a shipbuilder's claim. Claims reached
S2,7 billion in 1978.

Some positive Navy actions may avoid claims
or at least provide a defense for the Govern-
ment if a claim were filed. However, other
Navy actions may avoid claims, but not neces-
sarily reduce cost to the Government.

GAO makes recommendations that can help
keep costs and claims to a minimum.

11 i254

PSAD-80-18
ICCOU ' JANUARY 10, 1980