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ECONOMICS OF DEFENSE POLICY:

ADM. H. G. RICKOVER

BEFORE THE

HEARING
U.S. Conguss.

JOINT ECONOMIC COMMITTEE
CONGRESS OF THE UNITED STATES

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NINETY-SEVENTH CONGRESS

SECOND SESSION

PART 4

SHIPBUILDING CLAIMS

Printed for the use of the Joint Economic Committee

U.S. GOVERNMENT PRINTING OFFICE

92-782 0

WASHINGTON: 1982

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JOINT ECONOMIC COMMITTEE (Created pursuant to sec. 5(a) of Public Law 304, 79th Cong.) HOUSE OF REPRESENTATIVES

SENATE HENRY S. REUSS, Wisconsin, Chairman ROGER W. JEPSEN, Iowa, Vice Chairman RICHARD BOLLING, Missouri

WILLIAM V. ROTH, JR., Delaware LEE H. HAMILTON, Indiana

JAMES ABDNOR, South Dakota GILLIS W. LONG, Louisiana

STEVEN D. SYMMS, Idaho PARREN J. MITCHELL, Maryland

PAULA HAWKINS, Florida FREDERICK W. RICHMOND, New York MACK MATTINGLY, Georgia CLARENCE J. BROWN, Ohio

LLOYD BENTSEN, Texas MARGARET M. HECKLER, Massachusetts WILLIAM PROXMIRE, Wisconsin JOHN H. ROUSSELOT, California

EDWARD M. KENNEDY, Massachusetts CHALMERS P. WYLIE, Ohio

PAUL S. SARBANES, Maryland
JAMES K. GALBRAITH, Executive Director
BRUCE R. BARTLETT, Deputy Director

(II)

CONTENTS

September 23, 1969–H. G. Rickover memorandum for the General

Counsel, Department of the Navy concerning the failure of the Justice

Department to uphold the public interest in settlement of two lawsuits

involving the E. L. Weingand Co. and the Navy. (No record exists of

a response to this memorandum)----

May 10, 1971-H. G. Rickover memorandum for the General Counsel of

the Navy discussing the problem of shipbuilder claims and containing

recommendations on how to address the problem.....

May 28, 1971—General Counsel of the Navy memorandum agreeing with

and taking action on some and disagreeing with other recommendations

of H. G. Rickover's May 10, 1971, memorandum on shipbuilding claims.

February 11, 1972-H. G. Rickover memorandum for the Chief of Naval

Material concerning Navy claims procedures. (No record exists of a re-

sponse to this memorandum).

May 17, 1972-H. G. Rickover letter to the President of Ingalls Nuclear

Shipbuilding Division concerning alleged late delivery of Government-

furnished material on the SSN 680, 682, and 683 contract----

June 30, 1972–H. G. Rickover memorandum for the Deputy Commander

for Contracts, Naval Ship Systems Command, concerning the Ingalls

Nuclear Shipbuilding Division claim under the contract for construction

of SSN 680, 682, and 683. (No record exists of a response to this

memorandum).

July 19, 1972—H. G. Rickover memorandum for the Chief of Naval Mate-

rial concerning the Ingalls claim against the Navy under the contract

for construction of SSN's 680, 682, and 683. (No record exists of a re-

sponse to this memorandum)

July 21, 1972-H. G. Rickover memorandum for the Commander, Naval

Ship Systems Command concerning the claims against the Navy on con-

tracts for construction of SSN's 680, 682, and 683 and AE's 32 through

35 at Ingalls Shipbuilding. (No record exists of a reponse to this

memorandum)

August 9, 1972–H. G. Rickover memorandum for the Chief of Naval Ma-

terial with recommendations for improving Navy claims procedures based

on experience gained from the claim against the Navy on the contract for

construction of SSN's 680, 682, and 683 at Ingalls Shipbuilding---

October 5, 1972–Chief of Naval Material memorandum concurring with

and taking action on the recommendations of H. G. Rickover's August 9,

1972, memorandum concerning improvements to Navy claims procedures

based on experience gained from the claim against the Navy on the con-

tract for construction of SSN's 680, 682, and 683 at Ingalls Shipbuilding,

December 11, 1972–H. G. Rickover memorandum for the Chief of Naval

Material concerning recommendations for improving Navy claims pro-
cedures based on experience gained from the claim against the Navy on
the contract for construction of SSN's 680, 682, and 683 at Ingalls Ship-

building. (No record_exists of a response to this memorandum.)---

March 22, 1973—H. G. Rickover memorandum for the Chief of Naval Ma-

terial with recommendations for improving Navy claims procedures. (No

record exists of a response to this memorandum.).

June 14, 1973—H. G. Rickover memorandum for the Chief of Naval Mate-

rial recommending the Navy obtain outside assistance in defending

against shipbuilder claims. (No record exists of a response to this memo-

randum.).

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