Navy Maintenance

Pursuant to a congressional request, GAO reviewed the Navy's management of the Commercial Industrial Services (CIS) program in San Diego, California, focusing on: (1) whether the Supervisor of Shipbuilding, Conversion, and Repair (SUPSHIP), San Diego, implemented the program in compliance with Navy policy and regulations and in a manner similar to other West Coast Navy activities; (2) whether Navy policy has changed to shift work from CIS contractors to master ship repair (MSR) contractors at a higher cost to the Navy; (3) how SUPSHIP, San Diego, viewed and prioritized the program in light of other work requirements; and (4) how San Diego CIS contractors viewed the Navy's management of the program.

GAO found that: (1) SUPSHIP, San Diego, generally managed its program in accordance with Navy policy and in a way similar to other West Coast Navy activities; (2) since fiscal year 1987, SUPSHIP, San Francisco, has reduced the significantly higher percentage of CIS funds it provided to MSR contractors; (3) the Navy has not increased work provided to MSR contractors, although the Pacific Fleet has increased its amount of in-house intermediate and organizational maintenance; (4) although SUPSHIP, San Diego, management officials believed that the CIS program placed a heavy burden on their limited staff resources, they approved of the program and believed that it functioned well; (5) as of mid-1988, SUPSHIP, San Diego, had 27 active CIS contracts; (6) at least two CIS contractors at San Diego believed that SUPSHIP, San Diego, did not provide them with enough work; and (7) CIS contractors' allegations that the Navy improperly used MSR contractors at greater expense were incorrect.