Page 8: of Maritime Reporter Magazine (July 15, 1986)

U.S. NAVY

Exhibit 3—Cost Growth In 105 Navy Ship Overhauls, by SUPSHIP Office and Type

Contract ($ in millions)

Fixed Price Contracts

Cost Reimbursement

Contracts

No. of Total Total Difference

SUPSHIP Contracts Award Final Price Amount Percent

Bath 3 $36.1 $55.9 $19.8 55

Boston 9 57.6 78.8 21.2 37

Brooklyn 7 76.7 129.1 52.4 68

Charleston 6 17.4 27.5 10.1 58

Jacksonville 2 1.9 3.7 1.8 93

Long Beach 4 21.8 29.9 8.1 37

Pearl Harbor 2 12.6 17.1 4.5 36

Portsmouth 15 122.7 177.8 55.1 45

San Diego 12 109.8 229.2 119.4 109

San Francisco 8 110.6 182.3 71.7 65

Seattle 7 26.7 35.9 9.2 35

Total 75 $593.9 $967.2 $373.3 63

Bath 5 $99.6 $134.4 $34.8 35

Boston 1 12.5 21.7 9.2 73

Brooklyn 5 88.5 112.0 23.5 26

Pascagoula 7 117.1 158.3 41.2 35

Portsmouth 2 18.3 27.2 8.9 49

San Diego 5 75.6 95.8 20.2 27

Seattle 5 127.4 178.9 51.5 41

Total 30 $539.0 $728.3 $189.3 35

Source: General Accounting Office (continued)

Naval Shipyards

Employment in the eight naval shipyards continues to fall. Total employment was 75,860 in June 1985. By the end of 1985 employ- ment had fallen to 72,490. The Navy now projects that employment must decline to 68,000 during this fiscal year to meet budget objectives.

Meanwhile, NAVSEA has di- rected that overtime in the naval shipyards in FY 1986 be reduced by 3.2 million man-hours. A target of a 6.3 percent composite overtime rate has been set for this year, compared to 10.3 percent in FY 1985.

Small Business Set Asides

The Navy has expressed concern to Congress about the impact of set- ting aside ship maintenance work for small businesses. Mr. Pyatt stated in late February that:

One of the challenges we have in maintaining a national industrial base is proper utilization of both large and small businesses. Dur- ing the past few years, we have properly relied on the capabilities of small business. Now, we find that small business preferences are operating to the disadvantage of the larger firms. The distribu- tion of work is:

Percentage Small Business Set Aside (ROH/SRA/RATA) 1981 1985

East Coast 13% 17%

SRA Alone 0 16

West Coast 12 54

SRA Alone 0.5 64

CURRENT NAVY, COAST GUARD & MARAD OVERHAUL, MAINTENANCE & CONVERSION CONTRACTS AT U.S. YARDS

SHIPYARD TYPE OF WORK $VALUE COMP

Alabama Dry Dock .... Phased maintenance on USS Lexington (AVT-16) 10,132,000 8/90

Atlantic Marine .... Repairs to USS Saratoga (CV-60) 3,500,000 9/86

Bath Iron Works .... Overhaul 4 USCG cutters 117,452,000 -89

Bath-Portland .... Overhaul DDs Deyo & O'Bannon 44,600,000 86-87

Bras well Shipyards .... Maint. on USS Los Alamos (AFDB-7) 3,075,912 8/86

Coastal Drydock . . . . Overhaul USS Shreveport (LPD-12) 10,500,000 86

Charleston Naval Shipyard .... Overhaul USS Calhoun (SSBN-630) — 8/86

Overhaul USS Jackson (SSBN-634) — 8/87

Overhaul USS Sturgeon (SSN-637) — 9/86

Dillingham Ship Repair .... Convert ex-President Polk to craneship 20,500,000 9/86

Electric Boat .... Phased maintenance on SSBN-731-3 4,000,000 4/87

General Ship . . . . Maintenance on USS Miller (FF-1091) and

USS Valdez (FF-1096) 46,475,000 —

Honolulu Shipyard .... Repairs on USS Jason (AR-8) 3,997,504 7/86

Repairs to USS Mclnerney (FFG-8) 8,000,000 2/87

Ingalls Shipbuilding .... Overhaul USS Simon Lake (AS-33) 15,900,000 7/86

Jacksonville Shipyard .... Repairs to USS Saratoga (CV-60) 6,725,000 9/86

Jonathan .... Phased maintenance on USS Saganaw 9,900,000 6/90

Long Beach Naval Shipyard .... .... Modernize battleship Missouri (BB-63) 500,000,000 86

Overhaul USS Cleveland (LPD-7) — 1/87

Overhaul USS Schofield (FFG-3) — 11/86

Mare Island Navy Yard .... Overhaul USS Hammerhead (SSN-663) — 9/86

National Steel .... Convert two tankers to hospital ships 336,200,000 86-87

Phased maintenance on four LSTs 3,500,000 -90

Overhaul USS Merrill (DD-976) 6,039,000 —

Overhaul USS Home (CG-30) — —

Overhaul USS Leahy (CG-16) — —

Maintenance on three LSTs 5,858,543 —

Newport News Shipbuilding . . . . .... Overhaul USS Daniel Boone (SSBN-629) 12,800,000 8/86

Overhaul & refuel USS Benjamin Franklin (SSBN-640) 17,063,000 1/87

Overhaul USS Eisenhower (CVN-69) 276,600,000 1/87

Prep fir overhaul USS George Bancroft (SSBN-643) 19,400,000 3/88

Prep for overhaul USS Enterprise (CVN-65) 3,075,912 8/86

Norfolk Navy Yard .... Overhaul USS Nassau (LHA-4) — 9/86

Overhaul USS Memphis (SSN-691) — 9/86

Norfolk Shipbuilding .... Phased maint. on AO-178, 179, 186 38,900,000 —

Overhaul USS Coloosahatchee (AO-98) 3,478,000 _

Overhaul USS Iwo Jima (LPH-2) 16,167,222 2/87

Northwest Marine .... Overhaul USS Cushing (DD-985) 12,300,000 7/86

Pearl Harbor Navy Yard .... Overhaul USS Skate (SSN-578) — 86

Overhaul USS Omaha (SSN-692) — 86

Pennsylvania Shipbuilding .... Phased maint. on USS Patterson (FF-1061) 5-10 mil/yr —

Maint. on USS Oliver Hazard Perry (FFG-7) 4,861,747 7/86

Philadelphia Navy Yard .... SLEP on Independence (CV-62) 240,000,000 —

Modernization of Wisconsin (BB-64) 469,000,000 87

Portsmouth Navy Yard . . . . Overhaul USS Bolivar (SSBN-641) — 12/86

Overhaul USS Greenling (SSN-614) — 7/86

Overhaul USS James K. Polk (SSBN-645) 135,000,000 87

Puget Sound Navy Yard . . . . Overhaul USS Ranger (CV-61) — 86

Overhaul USS Texas (CGN-39) — 12/86

Repair & overhaul USS Nimitz (CVN-68) — 89

Service Engineering Overhaul USNS Spica (T-AFS-9) 10,700,000 __

Phased maint. on AE-29, 32-34 4,154,000 86-89

Southwest Marine .... Overhaul USS Dubuque (LPD-8) 10,000,000 —

Repairs to USS Kansas (AOR-3) and

Wichita (AOR-1) 41,600,000 —

SRN on 4 16/26 class ships — —

Overhaul USS Cayuga (LST-1186), USS Racine (LST-1191) and USS Schenectady (LST-1185) 35,000,000 87-89

SRA work on USS Durham (LKA-114) 3,187,000 7/86

Todd-Galveston .... Convert two C-5s to T-AVBs 55,000,000 86-87

Todd-San Pedro .... Maintenance on USS Vincennes (CG-49) 3,750,000 —

Overhaul USS Ingersoll (DD-652) 13,500,000 12/86

Todd-Seattle .... Phased maintenance on AOEs 6,000,000 86-90

Overhaul eight USCG cutters 234,903,000 -90

USCG Yard-Curtis Bay . . . . SLEP for 14 buoy tenders 8,500,000 —

Major maintenance on 16 WMECs — — 10 Maritime Reporter/Engineering News