U.S. Naval shipbuilding claims settlement : 1974-1978.

Abstract

The 1974 Seapower Subcommittee hearings, in part, expressed concern over the $1.3 billion in shipbuilding claims then outstanding and concluded that the existing procedures allowed unacceptable delay in claims settlement. These claims grew to over $2.7 billion before they were settled in 19 78. In addition to the nature of these claims, this thesis contains an investigation of the three principal initiatives exercised within the Department of Defense to settle these claims: the 1976 attempt to use P.L. 85-804, the Navy Claims Settlement Board, and the negotiated settlements in 19 78. Case studies are included for the claims from General Dynamics Corp., Electric Boat Division, and Litton Industries, Inc., Ingalls Shipbuilding Division. Finally, this thesis concludes that changes in the nature of the shipbuilding industry, contracting methods and procurement policies altered the nature of claims. Further, negotiated settlement, using claims entitlement as a basis, proved an effective alternative to litigation in resolving shipbuilding claims.