Seawolf Contract Terminations
1992
Davis, Richard | Rabkin, Norman J. | Bigden, Frederick A. | Fenstermaker, Fred P. | Grant, Jeffrey D. | Rose, Jeffrey V. | Forte, Vincent J. | Cecil, Kelly L.
This letter to The Honorable John Conyors, Jr., Chairman, Legislation and National Security Subcommittee, Committee on Government Operations, House of Representatives, and The Honorable Edward M. Kennedy, Chairman, Subcommittee on Projection Forces and Regional Defense, Committee on Armed Services, United States Senate, from the General Accounting Office (GAO), provides details of the Navy's plans to use Public Law 102-298 funds and GAO's evaluation of that planned use. This issue was discussed in GAO's August 20, 1992, and September 10, 1992, briefings to congressional staffs on the Navy's plans and liabilities to terminate Seawolf class nuclear-powered submarine (SSN-21) program contracts. Congressional conferees made $540.2 million available to help preserve the industrial base for submarine construction. The Navy plans to use these funds to partially fund SSN-21 and SSN-22 cost growth and to purchase spare parts. The plan does not provide for advance procurement for the SSN-23, restart of the SSN-688 program, or provide any additional work to the submarine shipbuilding industrial base. Department of Defense (DoD) officials stated that DoD will not release the $540.2 million to the Navy until a final decision has been made on the use of these funds. The final decision will not be made until January or February 1993, after an ongoing DoD shipbuilding industrial base study is completed in November 1992.
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