Observations on Two Naval Nuclear Propulsion Program Procurement Practices

NSIAD-85-111: Published: Jul 26, 1985. Publicly Released: Jul 26, 1985.

Additional Materials:


Office of Public Affairs
(202) 512-4800

GAO reviewed certain procurement practices in the Naval Sea Systems Command's Nuclear Propulsion Directorate, focusing on: (1) the procurement of material used to manufacture reactor components from component manufacturers instead of subtier suppliers; and (2) split contract awards designed to maintain or increase the number of suppliers of a given item. Two prime contractors heavily support procurement activities under the Nuclear Propulsion Program.

GAO found that: (1) while the contractors believe that it is more economical to procure component material from manufacturers, neither has prepared a formal analysis to support its position; (2) the contractors could have saved from $4 to $8 million in fiscal year 1983 by procuring the material directly from suppliers; and (3) the contractors should determine, on a case-by-case basis, whether to procure component material from component manufacturers or subtier suppliers. GAO also found that the contractors could: (1) have saved about $6.1 million since fiscal year 1979 by better determining the minimum quantities necessary to maintain higher-priced suppliers as viable supply sources; and (2) determine the minimum award quantities necessary using data it already develops to ensure that suppliers remain viable.

Nov 8, 2017

Oct 31, 2017

Oct 26, 2017

Oct 17, 2017

Oct 12, 2017

Oct 11, 2017

Oct 10, 2017

Sep 29, 2017

Looking for more? Browse all our products here