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B-173044 1 (1972-02-03)

handle is hein.gao/gaobabkpk0001 and id is 1 raw text is: pe d *Wtsi J* qepe al kJ RESTRICTED - Not to ho rowe .ui oea Ac.Wiflt?~ Clica exceP On tine b*44l of S 47r STby $be OMC of CongIGlauSia Rlot.... COMPTROLLER GENERAL OF THE UNIT ES WASHINGTON. D.C. 20548 B-173044 RELEASED F 1972 /1 ?Dear Senator Hollings: c,. As requested by you, Senator Strom Thurmond and Repre- sentative Mendel J. Davis',we have reviewed the plans made by Avco Corporation to close its Charleston plant and to consol-1,14' idate all of its operations in a Government-owned facility in Stratford, Connecticut. We exam ineT Iiit'rthe effect that the consolidation would have on the Departmen of Defense (DOD) --concerning prices and delivery schedules or engine overhauls and spare-parts production, and we inquired into the disposi- tion of the Government equipment that was being used in the Charleston plant... The Lycoming Division of Avco Corporation is the sole producer of the T-53- and T-S5-series turbine engines and of the associated spare parts used by the Army on various air- craft. The major activities at Stratford, where the facili- ties are owned by the Government but have been managed by Avco since 1951, consist of production of eiqgines and related spare parts, engine overhauls, and research and development. The Charleston plant, owned by Avco except for a major part of the equipment, was established originally in April 1966 and was expanded in 1968 as a 'feeder plant for certain major engine components and for the overhaul program. The Charleston plant was used primarily for engine overhauls and for the production/of titanium compressor rotor assemblies which are used to modify T-53 engines. The titanium rotors have longer wear lives than the rotors they replace and in- crease operational time between engine overhauls. By the end of November 1971, all production and overhaul operations at the Charleston plant had been terminated. All of the equipment identified for transfer to the Stratford plant had been shipped from Charleston. As you know, the Army has reduced drastically its re- quirements for the production of engines, and this has re- sulted in a sharp decline in Avco's Government business. Dur- ing the past 24 months, the contractor's military engine

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