Potential Savings by Streamlining Grumman's Computer Operations Supporting Navy Contracts

PSAD-79-111: Published: Oct 5, 1979. Publicly Released: Oct 5, 1979.

Additional Materials:


Office of Public Affairs
(202) 512-4800

Grumman Aerospace Corporation buys data processing services from Grumman Data Systems Corporation to support manufacturing and testing operations performed in fulfillment of Navy contracts. Both corporations are subsidiaries of the Grumman Corporation. The cost and storage capacity of the system used was compared to the capacity required for storage and processing of the necessary information. The methods used for computing charges to the Navy were also evaluated.

It was determined that the Navy could save approximately $335,000 if the excess capacity in the data processing and computer operations were eliminated. Since the Navy paid the cost of data processing through the overhead accounts of Grumman Aerospace Corporation, any system capacity not utilized for other accounts was paid for by the Navy. Recommendations were made to the contractor for equipment changes, substitution of less expensive but adequate materials, and reduction of computer capacity. In addition, a review of the methods used for computing charges to the Navy showed the potential for inaccurate allocation of costs to government work. In one case it was revealed that the Navy was undercharged and in another case maintenance work was charged to the Navy that GAO felt should have been charged to a commercial account.

Dec 23, 2020

Dec 15, 2020

Oct 13, 2020

Oct 7, 2020

Sep 30, 2020

Sep 29, 2020

Sep 28, 2020

Sep 14, 2020

Sep 9, 2020

Sep 8, 2020

Looking for more? Browse all our products here