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B-133170 1 (1974-10-04)

handle is hein.gao/gaobaaejq0001 and id is 1 raw text is: ...... COMPTROLLER GENERAL OF TH-E UNITED STATES /0~ WASHINGTON, D.C. 20548 13 13370 f T4 1974 Oqio63 The Honorable Warren G. Magnuson Chairman, Committee on Commerce United States Senate Dear Mr. Chairman: In your October 10, 1973, letter you pointed out that, while considering the fiscal year 1973 appropriations bill for the Maritime Administration (MARAD), the experience of shipbuilders who contracted with MARAD to build oceanographic vessels for the National Oceanic and Atmospheric'Administration (NOAA) was called to the Committee's atten- tion. You requested that we review MARAD's contracting procedures for the construction of four oceanographic vessels--Surveyor, Ocean- ographer, Discoverer, and Researcher. In December 1973 we met with your office and pointed out the difficulties of evaluating MARAD's contracting procedures and identify- ing the responsibility for the causes for the losses contractors incurred. Our difficulties were caused in part by the absence of complete records at MARAD and NOAA headquarters primarily due to the time that had elapsed since the ships were constructed. For example, the contract for the first vessel, Surveyor was awarded in October 1957 and completed in April 1960, while the contract for the most recent vessel, Researcher was awarded in June 1966 and completed in June 1970. Our efforts were also hampered because (1) several key MARAD and NOAA employees who knew of the circumstances pertaining to the contracting and construction of the vessels no longer were employed by these agencies and (2) the remaining key employees could not accurately remember specific details due to the age of the contracts. Consequently, we agreed with your office to (1) limit our examination to those records available at MARAD and NOAA headquarters and to con- tacts with available employees and (2) orally summarize available data. We presented our summary in March 1974. However, we did not have enough data to draw a conclusion about the propriety of MARAD's contract- ing procedures or to pinpoint the responsibility for the losses incurred. Below is a summary, on the basis of available information, of the principal reasons for the losses contractors sustained for the oceanographic vessels.

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