The Navy Is Not Adequately Protecting the Government's Investment in Materials Furnished to Contractors for Ship Construction and Repair

The Navy provides billions of dollars of Government-furnished materials (GFM) to contractors for use in constructing, overhauling, and repairing Navy ships. GFM includes parts, components, assemblies, raw and processed materials, and supplies that are attached to or incorporated into ships. Various Navy commands either own or acquire the materials and issue them to the contractors as part of the contractual agreement. Responsibility for monitoring these materials is highly fragmented among Naval Sea Systems Command (NAVSEA) activities in Washington, D.C., and local Supervisors of Shipbuilding, Conversion, and Repair (SUPSHIP's) located throughout the United States.