Navy Ships:

Seawolf Cost Increases and Schedule Delays Continue

NSIAD-94-201BR: Published: Jun 30, 1994. Publicly Released: Jun 30, 1994.

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Pursuant to a congressional request, GAO provided information on the detail design and construction status of the Navy's Seawolf nuclear-powered attack submarine.

GAO found that: (1) during 1993, Seawolf design costs increased by about $17 million, SSN-21 lead ship construction costs increased by about $39 million, and both programs continued to experience schedule delays; (2) the increases in detail design costs were attributable to contractor drawing delays, design inefficiencies, and overtime costs; (3) increases in lead ship construction costs were due to increases in direct labor, overhead, and workload; (4) the Seawolf detail design contract fell behind schedule by an additional 15,000 hours because of delays in preparing design drawings and integrated logistics support data; (5) SSN-21 construction fell 4 months behind schedule and needed to be revised in March 1993; (6) the contractor and Seawolf program officials believe that late design data, an eroding industrial vendor base, and late materials contributed to construction delays; and (7) although the Navy remains concerned about an insufficient SSN-21 construction workforce, defense officials believe that the contractor will eliminate construction delays and be able to meet the revised May 1996 delivery schedule.

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