NCJ Number
74578
Date Published
1980
Length
27 pages
Annotation
This report discusses ways in which the Navy can reduce ship overhaul costs and increase supply system efficiency and effectiveness.
Abstract
The General Accounting Office (GAO) concentrated on the extent to which the remove-and-replace concept had been applied to electronic components for six ships undergoing overhaul -four surface ships at the Philadelphia Naval Shipyard and two submarines at the Portsmouth Naval Shipyard (Virginia). The visibility and control that the supply system has over material not needed for ship overhauls at the Philadephia shipyard were also examined. GAO reviewed numerous documents and had discussions with Navy personnel at several locations visited. The report shows that one shipyard had $11 million of excess material on hand or due in, while the supply system was buying and/or repairing $5.3 million of the same material. GAO recommends that the Navy discontinue routine concurrent rework (except for those items for which replacements are not available) and develop and implement operating procedures that require shipyards to use the remove-and-replace concept during ship overhauls when replacement items are available in the supply system. Other suggestions and the Department of Defense reply are presented. Appendixes include a schedule of hours and costs to repair items that were available in the supply system, a summary of concurrently reworked electronic components examined, and a summary of Philadelphia shipyard excess items as of September 1979. Footnotes are provided. (Author abstract modified)