Navy Acquisition:

Cost, Schedule, and Performance of New Submarine Combat Systems

NSIAD-90-72: Published: Jan 31, 1990. Publicly Released: Feb 7, 1990.

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Pursuant to a congressional request, GAO reviewed the status of the Navy's submarine combat system development programs to determine whether they were meeting cost, schedule, and performance goals.

GAO found that: (1) the Navy was accepting combat systems that were not fully developed in order to attain program schedules and goals; (2) life-cycle costs for the AN/BSY-1 system increased from $5.4 billion for 19 systems to $12.1 billion for 24 systems; (3) the first four of the AN/BSY-1 systems lacked complete offensive capabilities and would have to be upgraded; (4) AN/BSY-1 design modifications accounted for most of the major changes in the construction of the improved SSN-688 submarine, resulting in an $82-million award to one shipbuilder, and another shipbuilder's contract adjustment request totaling $150 million; (5) the Navy would receive the first nine AN/BSY-1-equipped submarines 17 months past the scheduled delivery date; (6) the AN/BSY-2 program was undergoing similar developmental problems in trying to meet demanding construction schedules; (7) although AN/BSY-2 personnel were scheduled to deliver a fully capable system by November 1994, the system's development was already delayed by 3 months and further delays were anticipated; and (8) development delays have resulted in Navy deferrals of design reviews and testing required for hardware and software development.

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