Navy Maintenance. Status of the Public and Private Shipyard Competition Program
Abstract
Since fiscal year 1985, defense appropriations acts have included provisions for competition between public and private shipyards for a portion of the Navy's depot level ship maintenance and modernization work. In a March 1988 report, the General Accounting Office concluded, in part, that inherent differences preclude public and private shipyards from competing on an equal footing. It was noted, however, that the Navy had taken steps to ensure that public and private shipyards be treated as equitably as possible. At that time, only a few overhauls and repairs had been completed. In response to a request from your office, GAO reviewed the current status of the shipyard competition program. This report summarizes the results of that work. The public and private shipyard competition program has resulted in limited competition between public and private shipyards with both types of shipyards submitting proposals on less than half the vessels competed. In part, this is because private shipyards can price proposals below expected costs, whereas public shipyards are required to include a proportionate share of all expected costs. Additionally, the limited availability of commercial ship construction and repair work has created a highly competitive market among private shipyards are capable of overhauling or repairing nuclear submarines. The Navy believes the program has encouraged the public shipyards to adopt a more business-like approach to ship repair work. However, the Navy's projected cost savings cannot be substantiated.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1990
- Accession Number
- ADA227052
Entities
Organizations
- United States Government Accountability Office