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PLRD-83-5 1 (1982-10-26)

handle is hein.gao/gaobabdsa0001 and id is 1 raw text is:                                                                    -.//q73


BY THE COMPTROLLER GENERAL



Report To The Congress

OF THE UNITED STATES




The 1978 Navy Shipbuilding Claim Settlement

At Electric Boat--Status As Of December 26,1981





The Defense Appropriation Authorization
Act of 1979 requires the Comptroller
General to audit two contracts with Electric
Boat for constructing SSN-688 class nu-
clear attack submarines that were involved
in a shipbuilding claim settlement. The
audit 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 contrac-
tor does not use such funds to realize any
total combined profit on these contracts.


GAO found that the funds are being spent
as :intended and a substantial loss is still
being projected by the contractor. Moreover,
the contractor, early in 1982, formally relin-
quished all rights toclaim or seek insurance
reimbursement for costs of defective work-
manship under the contracts. Previously,
Electric Boat sought to fully recover these
costs.


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    119773














 GAO/PLRD-83-5
 OCTOBER 26, 1982


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