Two Contracts for Nuclear Attack Submarines Modified by Public Law 85-804--Status as of December 23, 1978
PSAD-79-107: Published: Oct 2, 1979. Publicly Released: Oct 2, 1979.
- Full Report:
The 1979 Defense Appropriation Authorization Act requires the Comptroller General to audit and review two contracts for nuclear attack submarines to ensure that funds authorized for payments under contract modifications made in the interest of national defense are used only on these contracts and that the contractor does not realize any total combined profit on the contracts.
It was found that the funds were being used only on the two contracts, and that the contractor was not realizing any total combined profit. It was also found that: (1) the contractor's procedures and controls were adequate; and (2) the contractor continued to project an overall loss on the contracts and the prospect of reaching the necessary efficiency to realize a profit was remote.