Navy Contract: AOE 6 Shipbuilding Claims Settled but More Delays and Cost Growth Likely
Abstract
In January 1987, the Navy awarded National Steel and Shipbuilding Company (NASSCO), San Diego, California, an $862.9-million, fixed-price incentive contract for the detailed design and construction of the first AOE 6 class ship, with options for three additional ships (AOE 7 through 9). However, the program schedule slipped, costs increased, the Navy did not exercise the AOE 9 option, and it reduced the program from seven to four ships. By February 1991, NASSCO had submitted over $300 million in claims against the Navy for cost increases it believed the Navy was responsible for. As a result, the House and Senate Committees on Appropriations Conferees Directed GAO to monitor the claims resolution process. Specifically, GAO'S objectives were to identify the reasons for program cost growth and to document the procedures the Navy followed in its AOE 6 claims settlement process. In addition, GAO assessed whether the Navy would incur further program cost increases and schedule delays.
Document Details
- Document Type
- Technical Report
- Publication Date
- Sep 01, 1993
- Accession Number
- ADA271062
Entities
Organizations
- United States Government Accountability Office