Navy Ships: Seawolf Cost Increases and Schedule Delays Continue (Briefing
Report, 06/30/94, GAO/NSIAD-94-201BR).

Seawolf submarine detail design and SSN-21 construction continued to
experience cost increases and schedule delays during 1993.  The
estimated total cost of detail design and lead ship construction rose
about $17 million (2.5 percent) and $39 million (3.5 percent),
respectively.  Design cost increases were caused by rescheduling drawing
issue dates to meet Electric Boat's requirements, design inefficiencies
associated with that effort, and paying overtime.  Factors contributing
to construction cost increases included increases in direct labor,
increases in overhead, and additional work.  The detail design contract
fell another 15,000 hours behind schedule because of delays in preparing
design drawings and integrated logistics support data.  SSN-21
construction fell four months behind the construction schedule, which
was revised in March 1993.  According to Electric Boat and Navy Seawolf
program officials, late design data, an eroding industrial vendor base,
and later material contributed to the delays.  Although Electric Boat
has begun corrective action aimed at recovering construction delays and
meeting the SSN-21's revised May 1996 delivery schedule, the Supervisor
of Shipbuilding at Electric Boat continues to be concerned about
Electric Boat's ability to recover the construction delays.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  NSIAD-94-201BR
     TITLE:  Navy Ships: Seawolf Cost Increases and Schedule Delays 
             Continue
      DATE:  06/30/94
   SUBJECT:  Nuclear armed submarines
             Nuclear powered submarines
             Shipbuilding industry
             Construction contracts
             Construction costs
             Delivery terms
             Contract administration
             Cost overruns
             Navy procurement
             Military vessels
IDENTIFIER:  Seawolf Attack Submarine
             SSN-21 Submarine
             SSN-23 Submarine
             DOD Bottom-Up Review
             
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