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Navy Contracting: Status of Cost Growth and Claims on Shipbuilding Contracts

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Report Type Reports and Testimonies
Report Date Aug. 4, 1989
Report No. NSIAD-89-189
Subject
Summary:

Pursuant to a congressional request, GAO provided information on its continued monitoring of Navy fixed-price incentive contracts for shipbuilding.

GAO reviewed 46 contracts with a total target cost of about $25.9 billion and found that: (1) the net projected cost overrun was about $3 billion, with the government potentially liable for about $1.2 billion of that amount; (2) the attack submarine, amphibious assault ship, and aircraft carrier programs accounted for about 85 percent of the projected net overrun; (3) cost growth on 22 contracts that GAO originally reviewed increased 20 percent from April 1988 through March 1989; and (4) no claims or requests for adjustment had been submitted on 22 of the contracts.

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