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B-133170 1 (1974-06-21)

handle is hein.gao/gaobaafoy0001 and id is 1 raw text is: 




                     UNITED STATES GENERAL ACCOUNTING OFFICE
                              WASHINGTON, D.C. 20548


PROCIJREMENT AND SYSTEMS
  ACQUISITION DIVISION





       The Honorable

       The Secretary of the Navy

       Dear Mr. Secretary:

            This letter summarizes the results of our survey of the Navy's
       ship construction surveillane ' ctivities at the Newport News Ship-
       building and Dry Dock Company, Newport News, Virginia. We made
       observations and analyses of the principal types of work performed
       by the resident Supervisor of Shipbuilding, Conversion, and Repair
       (SUPSHIP) organization, with particular emphasis on the surveil-
       lance functions. Although most of this work involved SUPSHIP-Newport
       News, we also did a limited amount of work at the Naval Ship Systems
       Command Headquarters, Washington, D. C., and at SUPSHIP-Groton,
       Connecticut.

            Our survey work provided us with insight into the nature of
       the Navy's surveillance activities at a major private shipyard, the
       principal policies and procedures affecting these activities, some
       recent changes in the practices followed in acccmplishing the mission,
       and the beneficial effects of the Navy's surveillance program. This
       information will be useful to us in planning and conducting future
       audit effort involving the Na    pntr~at-ingra            shigpyr s.

            The current surveillance program, which was implemented by
       SUPSHIP-Newport News in May 1972, has many desirable features and,
       in our opinion, provides the Navy with a better means of discharg-
       ing its surveillance responsibilities than the previous program.
       The current program emphasizes procedural reviews and evaluations,
       verification of contractpX~rgo     n
       hsjiqal inspections. In addition, increased emphasis is placed
       on audits of the various functional areas of the shipbuilder's
       qALty__asaqn    eqysqketo assess its effectiveness and to help
       in identifying areas in which the Navy's physical inspection of
       the shipbuilder's work should be focused. This approach should
       result in more efficient and effective use of the resources devoted
       by the Navy to its shipyard surveillance functions.

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