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PLRD-83-5 1 (1982-10-26)

handle is hein.gao/gaobabdsa0001 and id is 1 raw text is: -.//q73 BY THE COMPTROLLER GENERAL Report To The Congress OF THE UNITED STATES The 1978 Navy Shipbuilding Claim Settlement At Electric Boat--Status As Of December 26,1981 The Defense Appropriation Authorization Act of 1979 requires the Comptroller General to audit two contracts with Electric Boat for constructing SSN-688 class nu- clear attack submarines that were involved in a shipbuilding claim settlement. The audit is to ensure that funds authorized to pay for contract modifications made in the interest of national defense are used only on the two contracts, and that the contrac- tor does not use such funds to realize any total combined profit on these contracts. GAO found that the funds are being spent as :intended and a substantial loss is still being projected by the contractor. Moreover, the contractor, early in 1982, formally relin- quished all rights toclaim or seek insurance reimbursement for costs of defective work- manship under the contracts. Previously, Electric Boat sought to fully recover these costs. IIIIIIIII1l~lIIIIIIIII 119773 GAO/PLRD-83-5 OCTOBER 26, 1982 C) 2r 7V1