**GAO-10-686**                      Published: Jul 26, 2010. Publicly Released: Jul 26, 2010.                  

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## Highlights

As fiscal constraints increasingly shape Navy shipbuilding plans, the pressure to increase efficiency mounts. Modernizing facilities and equipment at shipyards that build Navy ships can lead to improved efficiency, ultimately reducing the cost of constructing ships. In response to a request from the House Appropriations Subcommittee on Defense, GAO (1) identified investments in facilities and equipment at privately-owned shipyards over the last 10 years; (2) determined the Navy's role in financing facilities and equipment investments at these shipyards; and (3) evaluated how the Navy ensures investments result in expected outcomes. To address these objectives, GAO analyzed shipyard investment data over the past 10 years; interviewed shipyard, corporate, and Navy officials; and reviewed contracts, investment business cases, and other Navy and contractor documents.

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Michele Mackin
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## Topics

National Defense

Construction contractsConstruction costsContract authorityContract negotiationsContractor paymentsCost analysisDefense cost controlDefense procurementDepartment of Defense contractorsEvaluation criteriaInvestmentsManufacturing contractsMilitary facility constructionMilitary vesselsNaval facilitiesNaval procurementShipsShipyardsFacility constructionPolicies and proceduresProgram goals or objectives