Economics of Defense Policy: Adm. H. G. Rickover
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ECONOMICS OF DEFENSE POLICY: ADM. H. G. RICKOVER HEARING BEFORE TED JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES NINETY-SEVENTH CONGRESS SECOND SESSION PART 4 SHIPBUILDING CLAIMS Printed for the use of the Joint Economic Committee ECONOMICS OF DEFENSE POLICY: ADM. H. G. RICKOVER HEARING BEFORE THE JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES 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 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 SHIPBUILDING CLAIMS 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 Page a response to this memorandum)- 1 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- 3 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 8 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) -14 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 -17 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) -19 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) -- 51 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) -56 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 -- 58 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 62 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- l7uilding. (No record exists of a response to this memorandum.) --- 67 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.) -71 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.) -7---------------------------------- 4 (m) IV June 29, 1973-H. G. Rickover memorandum for the Commander, Naval Ship Systems Command, concerning the hiring of Government claims team members by Ingalls Shipbuilding. (No record exists of a response to Page this.,memorandum.) - 77 October 31, 1973-H. G. Rickover memorandum for the Chief of Naval Material concerning the claim against the Navy on the contract for con- struction of SSN's 680, 682, and 683 at Ingalls Shipbuilding -79 October 31, 1973-Chief of Naval Material memorandum forwarding for action to the General Counsel of the Navy an October 31, 1973, H. G. Rickover memorandum concerning the claim against the Navy for con- struction of SSN's 680, 682, and 683 at Ingalls Shipbuilding -85 February 20, 1974-H. G. Rickover memorandum for the Chief of Naval Material concerning the causes of shipbuilding claims and recommending how the Navy should handle them. (No record exists of a response to this memorandum.) - 86 July 26, 1974-H. G. Rickover memorandum for the General Counsel, Office of the Secretary of Defense (some enclosures deleted) recommend- ing the use of outside counsel to assist the Navy in defending against shipbuilding claims. (No record exists of a response to this memorandum.) -91 July 26, 1974-H. G. Rickover memorandum for the General Counsel, Office of the Secretary of Defense concerning the need for the Govern- ment to appeal to the Armed Services Board of Contract Appeals deci- sion in the Chu Associates. (No record exists of a response to this memorandum.) -96 October 16, 1974-H. G. Rickover memorandum for the General Counsel of the Navy concerning the use of outside counsel to handle shipbuilder claims against the Navy. (No record exists of a response to this memorandum.) - 98 December 4, 1974-H. G. Rickover memorandum for the Chief of Naval Material concerning the exercise of options with Newport News for con- struction of DLGN 41 and 42 -100 December 6, 1974-Chief of Naval Material memorandum responding to H. G. Rickover December 4, 1974, memorandum concerning the exer- cise of DLGN 41 and 42 options was classified "confidential business sensitive" and is not included herein. January 31, 1975-H. G. Rickover memorandum for the Assistant Sec- retary of the Navy (Installations and Logistics) concerning a memo- randum of understanding between the Navy and Newport News concerning the exercise of the DLGN 41 option and pointing out that only those provisions of the DLGN 41 contract subject to renegotiation under the terms of the contract should be opened for renegotiation as a result of exercising the DLGN 41 option. (No record exists of a re- sponse to this memorandum.) - 101 February 4, 1975-H. G. Rickover memorandum for the Assistant Secretary of the Navy (Installations and Logistics) concerning the DLGN 41 option. (No record exists of a response to this memorandum.) 103 February 14, 1975-H. G. Rickover memorandum for the Assistant Sec- retary of the Navy (Installations and Logistics) concerning comments made by H. G. Rickov'er at a meeting to discuss forthcoming negotia- tions of DLGN 41 option with Newport News Shipbuilding & Dry Dock Co. (No record exists of a response to this memorandum.) -104 May 5, 1975-H. G. Rickover memorandum for the Chief of Naval Mate- rial concerning a proposed revision to Navy claims procedures prescribed in Navy procurement directives; the revision would redefine the term "claim--113 May 27, 1975-Chief of Naval Material memorandum concurring with-and taking action on H. G. Rickover's May 5, 1975, memorandum concerning Navy claims procedures - _--- -__ - - 115 June 2, 1975-H. G. Rickover memorandum for the Chief of Navy Mate- rial recommending against a proposed revision to Navy claim procedures prescribed in Navy procurement directives; the revision would redefine the term "claim." (No record exists of a response to this memoran- dum.) - _-------------------------------------- 118 August 1, 1975-H. G. Rickover memorandum for the Chief of Naval Ma- terial concerning a proposed revision to Navy claim procedures prescribed in Navy Procurement Directives… -----------… V August 11, 1975-Chief of Naval Material memorandum stating that a proposed revision to Navy claim procedures prescribed in Navy Procure- ment Directives will be reissued in conformance with H. G. Rickover's Page August 1, 1975, memorandum ----- 123 August 6, 1975-H. G. Rickover letter to the chairman of Tenneco, Inc., containing comments on issues raised by Tenneco and Newport News Shipbuilding & Dry Dock Co. concerning H. G. Rickover's September 23, 1974, testimony before the Seapower Subcommittee of the House Armed Services Committee. (No record exists of a response to this memoran- dum.)- __-_-_- _ 128 August 6, 1975-H. G. Rickover memorandum for the Secretary of the Navy regarding comments on issues raised by Tenneco and Newport News Shipbuilding & Dry Dock Co. concerning H. G. Rickover's Septem- ber 23, 1974, testimony before the Seapower Subcommittee of the House Armed Services Committee. (No record exists of a response to this memo- randum.) -_----------_---------------- _-- 171 August 18, 1975-H. G. Rickover memorandum to Admiral Michaelis con- cerning a proposed revision to Navy claims procedures in the Navy pro- curement directives. (No record exists of a response to this memoran- dum.) -__------------------_------ 173 March 18, 1976-H.