Navy Ships

The Navy's Seawolf (SSN-21) submarine, a nuclear-powered attack vessel originally developed to counter the Soviet threat, continued to experience cost increases and schedule delays during 1992. Since December 1991, the estimated total cost for the design and lead ship construction at completion rose about $28 million and $64 million, respectively. Design availability and construction work force problems contributed to SSN-21 construction delays. Because of incompatibility between the design and construction schedules, more delays are possible. Although it is too early to tell whether steps taken by the Navy and the contractor--General Electric's Electric Boat Division--will overcome these problems, the Navy believes that its actions will maintain the SSN-21's May 1996 delivery deadline. SSN-21 welding problems appear to have been resolved and a recurrence is unlikely.

GAO found that: (1) SSN-21 construction has fallen at least 5 months behind schedule; (2) factors contributing to construction delays include late drawings and other design data, insufficient staff and problems preparing and releasing the instructions and materials needed for construction, and a smaller-than-expected SSN-21 construction work force; (3) 5 percent of the work packages scheduled for completion and 9 percent of the completed work packages scheduled for release to construction workers were delinquent; (4) the incompatibility between the design and construction schedules could further delay SSN-21 delivery; (5) it will cost $683 million to design the SSN-21 class, which is 125 percent over the original contract cost estimate; (6) cost increases are primarily due to changes in specifications, reductions in the number of submarines to be constructed, and the re-estimation of construction elements; and (7) the contractor has corrected the welding problems and instituted new welding procedures to prevent any recurrence of similar problems.