Nuclear Submarines: Navy Efforts to Reduce Inactivation Costs

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Report Type	Reports and Testimonies
Report Date	July 21, 1992
Report No.	NSIAD-92-134
Subject	Accounting procedures Environmental law Federal agency accounting systems Internal controls Management information systems Military cost control Nuclear powered submarines Nuclear waste disposal Radiation exposure hazards Shipyards Charleston (SC) Hanford (WA) Mare Island (CA) Navy Nuclear Propulsion Program Navy Standard Naval Shipyard Management Information System Navy Strategic Submarine Program Pearl Harbor (HI) Portsmouth (ME)

Summary:

The Navy has embarked on a program to inactivate about 100 nuclear-powered submarines and fully dispose of about 85 inactivated submarines by the year 2000 at a total cost of about $2.7 billion. At the end of fiscal year 1991, the Navy had begun inactivating 42 submarines. The Navy is trying to resolve environmental regulatory problems arising from the disposal of defueled nuclear reactor compartments and is trying a new approach for disposing of submarine hulls--submarine recycling. GAO notes two areas in which inactivation costs could be managed more effectively. First, the Navy needs to further standardize the way in which shipyards define and report costs so that shipyard performance can be compared and further efficiencies implemented. Second, by inactivating submarines at Puget Sound rather than at other shipyards, GAO estimates that the Navy could save as much as $11.5 million per submarine. The Navy is addressing both areas.

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Nuclear Submarines: Navy Efforts to Reduce Inactivation Costs