United States Government Publishing Office publisher pbl distributor dst United States Government Accountability Office National Security and International Affairs Division author aut Government Organization text government publication eng GAOREPORTS Legislative Agency Publications gao legislative 2010-08-12 U.S. Government Printing Office 1993-09-30 monographic deposited born digital 10 p. GA 1.13:NSIAD-93-298 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-93-298 P0b002ee180374492 f:ns93298 DGPO 2010-08-12 2011-03-24 GAOREPORTS-NSIAD-93-298 machine generated eng fdlp REPORT GAOREPORTS-NSIAD-93-298 NSIAD-93-298 Navy procurement Shipbuilding industry Shipyards Construction contracts Military vessels Labor-management relations Productivity Military cost control Claims settlement Contract costs AOE-6 Class Fast Combat Support Ship AOE-10 Class Fast Combat Support Ship DDG-51 Destroyer Letter Report NSIAD In January 1987, the Navy awarded an $863 million, fixed-price incentive contract for the design and construction of the first AOE 6 class ship, with options for three more ships. Because of program schedule delays and cost increases, however, the Navy reduced the program from seven to four ships. By February 1991, the contractor, National Steel and Shipbuilding Company, had submitted more than $300 million in claims against the Navy for cost increases that it believed the Navy was responsible for. GAO concludes that these problems and resulting claims stemmed from an optimistically low bid, concurrent development and construction, inadequate Navy and contractor management attention, and unrealized gains in expected shipyard productivity. The Navy administered the claims evaluation process according to established procedures. The lead ship has yet to be fully tested at sea, where operational problems may first arise. Thus, the final costs, delivery dates, and extent to which the ships under construction will meet expectations are still unknown. Declines in the size of the fleet and carrier force and a reordering of defense priorities may preclude the need for another AOE class ship, the AOE 10. https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-93-298/html/GAOREPORTS-NSIAD-93-298.htm https://www.govinfo.gov/content/pkg/GAOREPORTS-NSIAD-93-298/pdf/GAOREPORTS-NSIAD-93-298.pdf GAO/NSIAD-93-298 https://www.govinfo.gov/app/details/GAOREPORTS-NSIAD-93-298 Letter Report GAO/NSIAD-93-298; Navy Contract: AOE 6 Shipbuilding Claims Settled But More Delays and Cost Growth Likely; Navy procurement Shipbuilding industry Shipyards Construction contracts Military vessels Labor-management relations Productivity Military cost control Claims settlement Contract costs AOE-6 Class Fast Combat Support Ship AOE-10 Class Fast Combat Support Ship DDG-51 Destroyer Public Law 85-804