About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-133170 1 (1971-08-23)

handle is hein.gao/gaobaafgf0001 and id is 1 raw text is: COMPTROLLER GENERAL OF THE UNITES W.ASJHINGTON, D.C. SO=P4 B-133170 2 3 71 Dear Mr. Chairman: LI0l5537 In accordance with your letters of August 18 and December 10, 1970, we are reviewing efforts by the Navy and its contractors to con- trol ship construction costs at major private shipyards. We have now completed a substantial part of this work. On some of the questions you raised, however, we are finding it necessary to expend a greater amount of audit effort than we originally thought would be needed. Rather than delay reporting until we obtain all the neces- sary information, we plan to furnish you with separate reports on major segments of the work as they are completed. Therefore on June 4 we furnished your office with the Navy's response to specific questions in your letters. Today's letter furnishes our response to the following question included in your August 18 letter. Is there enough competitive pressure in the shipbuilding business or are the types of g oy rnment contracts awarded for shipbuilding work adequate to give the shipyards an incentive to control costs and work efficiently on govern- ment contracts without close government surveillance? Our examinations of the award and administration of contracts with private shipyards, which include contracts for ship overhauls as well as for their construction, lead us to conclude that, although there is a certain amount of competition in the shipbuilding industry, the benefits are reduced by (1) the limited number of contractors competing for contract awards and (2) the large number of changes and claims negotiated after the award. LIMITED NUMBER OF SHIPYARDS BEST DOCUMENT A COMPETING FOR CONTRACTS AVAILA£L! Competition is often limited to the few shipyards having the capa- bility to construct certain types of vessels. Presently, for example, only one private shipyard has the capability to construct nuclear aircraft MfTH ANNIVFr .ARY 101-1071

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most