Navy Maintenance:

Selected Private and Public Shipyard Manday Rates' Cost Elements

NSIAD-87-20FS: Published: Oct 3, 1986. Publicly Released: Oct 3, 1986.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

In response to a congressional request, GAO examined: (1) the man-day rates of Navy ship maintenance work performed in selected private and public shipyards; (2) the Navy's reasons for overhauling West Coast-based aircraft carriers at the Philadelphia Naval Shipyard; (3) whether the public yard rates included all overhead costs; and (4) whether a comparison of rates might show overhaul on the West Coast to be more cost-effective.

GAO noted that the purpose of the extensive overhauls under the aircraft carrier Service Life Extension Program (SLEP) is to extend the aircraft carriers' expected service life from 30 years to 45 years. GAO found that: (1) the fiscal year 1985, man-day rates at the public and private shipyards were very close and included most overhead costs; (2) the public and private shipyard rates did not reflect the costs for Navy management and oversight; (3) labor comprised from 80 to 88 percent of total costs for public shipyards and from 70 to 75 percent for private shipyards; (4) only private shipyards incurred costs for state and local taxes, business licenses, insurance, building space rental, and building depreciation; (5) in deciding to perform SLEP on the West Coast, the Navy considered cost, the Naval Sea Systems Command SLEP objectives, and strategic requirements; and (6) the Navy believed that conducting a reduced-scope SLEP on the West Cost would be unsatisfactory, since the Puget Sound shipyard did not include in its program the extensive modernization of hull structures and main engines.

Jul 21, 2016

Jun 23, 2016

May 12, 2016

Apr 14, 2016

Mar 4, 2016

Oct 30, 2015

Sep 9, 2015

Aug 17, 2015

Jul 9, 2015

Apr 27, 2015

Looking for more? Browse all our products here