About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


NSIAD-84-7 1 (1984-04-12)

handle is hein.gao/gaobabemh0001 and id is 1 raw text is: BY THE US GENERAL ACCOUNTING OFFICE Report To The Secretary Of Defense Excess Navy Ships Sold To Foreign Countries At Understated Prices Each of the 11 ships sold toforeign countries in fiscal years 1981 and 1982 was underpriced according to the Navy's guidance. The ships were sold for a total of $5 2 million, whereas prices should have totaled $36 4 million The prices were generally based on scrap value rather than the higher fair value This value could be even greater, but the condition of the ships was not adequately determined In addition, some conversion and overhaul costs were not charged as required, and many spare parts and other supplies were left on board at no cost to the recipients According to Navy officials, there are often political and diplomatic considerations and pricing precedents that the Office of the Chief of Naval Operations perceives as outweighing approved pricing methods The Navy has taken some corrective actions and is deter- mining whether changes to policies are required How- ever, Defense does not agree with GAO that it provide Congress with more pricing information for certain ships which are to be sold S117 123879 G 7r GAO/NSIAD-84-7 'ICCOUAPRIL 12, 1984