Accession Number : ADA130521

Title :   The 1978 Navy Shipbuilding Claims Settlement at Litton/Ingalls Shipbuilding--Status as of August 1, 1982.

Corporate Author : GENERAL ACCOUNTING OFFICE WASHINGTON DC PROCUREMENT LOGISTICS AND READINESS DIV

PDF Url : ADA130521

Report Date : 03 Mar 1983

Pagination or Media Count : 65

Abstract : The 1979 Defense Appropriation Authorization Act requires the Comptroller General to review two contracts with Litton Systems, Inc., Ingalls Shipbuilding Division, for building landing helicopter assault and DD-963 destroyer ships that were involved in a shipbuilding claims settlement. The review is to ensure that funds authorized to pay for contract modifications made in the interest of national defense are used only on the two contracts and that the contractor does not use such funds to realize any total combined profit on these contracts. GAO found that the funds were being used as intended. However, should all unpaid construction costs and other funds retained by the navy be paid, some funds could then become available for contractor use on projects other than the specified contracts. Although Litton, at the time of the settlement, projected a $200 million loss, it is now in a position to realize a total combined profit of $15 million on the two contracts, payment of which GAO believes would be contrary of limitations in the above act. (Author)

Descriptors :   *Financial management, *Industries, *Shipbuilding, *Naval vessels, *Costs, Cost overruns, Cost models, Contract administration, Naval budgets, Accounting, Cost estimates, Planning programming budgeting, Management planning and control, Amphibious assault ships, Destroyers, Reports

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Mfg & Industrial Eng & Control of Product Sys
      Marine Engineering

Distribution Statement : APPROVED FOR PUBLIC RELEASE