GAO reviewed the Navy's methods for managing and controlling direct labor costs at its naval shipyards, focusing on whether labor estimates: (1) for ship repairs were reliable and effective in helping managers to control labor costs; and (2) reflected the benefits from labor-saving improvements and new equipment.
Recommendations for Executive Action
|Department of the Navy||1. The Secretary of the Navy should direct the Commander, NAVSEA, to establish milestones for implementing the new training program to ensure that all planners are well-trained in estimating policies and procedures.|
|Department of the Navy||2. The Secretary of the Navy should direct the Commander, NAVSEA, to ensure that each shipyard conducts periodic, independent audits of labor estimates to assess accuracy and compliance with estimating policies.|
|Department of the Navy||3. The Secretary of the Navy should direct the Commander, NAVSEA, to establish a labor standards improvement initiative to ensure that frequently performed repair tasks are covered by current, independently developed labor standards.|
|Department of the Navy||4. The Secretary of the Navy should direct the Commander, NAVSEA, to establish a procedure ensuring that shipyard planners are informed of all new production processes, methods, and equipment that improve worker efficiency.|