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B-184830 1 (1977-04-28)

handle is hein.gao/gaobadvav0001 and id is 1 raw text is: ~.f COMPTROLLER G~ENERAL OF THE UNITED %TATE-' WASHINGTON, 0 r- 20341 ,c' CJ APR 2 8 1977 ET The Honorable Melvin Price Chairman, Committee on Armtf Servlces House of Representatives Dear Mr. Chairman: This letter is in response to your request, dated October 21, 1976, asking us to investigate and report upon allegations involving Modification P00031 to Navy Contract N00024-70-C-0252. The contract and modification pertain to the nuclear guided missile CGN-41 cruiser (originally designated a frigate (DLGN)) under construction by Newport News Shipbuilding and Dry Dock Company. On December 3, 1976, representatives from this Office met with Mr. Frank Slatinshek, then Chief Counsel of your Comrmittee, and Mr. Adam Klein, staff attorney. At that meeting, we agreed, in view of the litigation on this matter (United-States v. Newport News-Shipbui1dihg-and-Drv Dock Companv and Tenneco -inc., Civil ction No. 75-88-M), to limit CAO's investigation to the following items: (I) A brief history of the CGN-41 contract; (2) The Navy's estimated cost to the Government resulting from Modification P00031; (3) The potentil of overpayment on account of escalation under the terms of the modification; (4) A statement as to whether nornal review proce- dures were followed with respect to the negotia- tion and signing of Modification P00031; (5) A chronology of events surrounding the negotia- tion and signing of Modification P00031, begin- ning with the decision to appoint Mr. Gordon Rule as Navy's negotiator on the CGN-41 dispute, and ending with the rescission of his appointment as Contracting Officer; and

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