Naval Ship Procurement Process Study
1978
The diversion of Navy and shipbuilder energies to the analysis and pursuit of claims became a significant factor in the Navy's management planning, organization, and budgeting for ship acquisitions, and has drained the valuable managerial time and attention of the Navy and the shipbuilders away from the problems attendant to construction of Navy ships. In addition, the public acrimony and disputes between the Navy and its shipbuilders raised serious questions about the credibility of both sides in the ship acquisition process. The settlement agreements with General Dynamics/Electric Boat and with Litton Industries/Ingalls in June 1978 are major steps toward the reestablishment of normal business relations. This report examines the crucial elements of these problems in detail and presents the conclusions of the study team regarding changes to the ship acquisition process that will minimize the probability of claims in the future.
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