Navy Maintenance:

Cost and Schedule Performance at San Diego and Long Beach Shipyards

NSIAD-93-85: Published: Dec 9, 1992. Publicly Released: Dec 9, 1992.

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Pursuant to a congressional request, GAO reviewed cost and schedule information on ship repairs at San Diego, California, and Long Beach, California, area shipyards, focusing on the comparison of: (1) contract award prices and final contract prices for ship repairs; (2) government cost estimates at the start of the contract and the actual costs at work completion; (3) original completion schedules with actual completion dates for private and public shipyards; and (4) San Diego and Long Beach private shipyards' performance.

GAO found that: (1) final contract costs generally exceeded contract award prices by 30 percent on most ship repairs, but they were generally less than government estimates; (2) 50 to 57 percent of repairs exceeded the original schedule completion dates by an average of over 30 days; (3) cost and schedule overruns were similar at San Diego and Long Beach shipyards; (4) the Long Beach Naval Shipyard overall showed an insignificant difference between cost estimates and actual repair costs, although 8 of 23 ships did have cost overruns averaging $4.1 million, and 10 of 23 ships had schedule overruns averaging 22 days; (5) differences between government estimates and actual costs were small, since the government estimate was a negotiated price between the government and the shipyard, and generally included a 10- to 15-percent growth factor; and (6) the causes of cost and schedule overruns were inability to determine exact maintenance requirements, inadequate and late government-furnished information and materials, government-caused delays and disruptions, and work added after start of repairs.

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