Navy's Projected Cost and Schedule Savings in the Acquisition of Nuclear Aircraft Carriers

In response to a congressional request, GAO discussed its recent reviews of the Navy's projected cost and schedule savings in the acquisition of nuclear aircraft carriers. In fiscal year (FY) 1983, the Navy requested $6.8 billion to fully fund two nuclear aircraft carriers instead of incrementally funding one in FY 1984 and one in FY 1986. A 1982 report found that the Navy's estimated savings were centered around certain assumptions regarding escalation avoidance, economic order quantities, reductions in nonrecurring costs, and improved shipyard productivity. A subsequent report confirmed that these conditions had occurred as planned and that events and assumptions affecting anticipated savings had not changed. Further, a July 1983 report found that the Navy's estimated savings on the recently launched carrier appeared to be reasonable if the incentive delivery date was met.