Summary

The Navy has embarked on a program to inactivate about 100 nuclear-powered submarines and fully dispose of about 85 inactivated submarines by the year 2000 at a total cost of about $2.7 billion. At the end of fiscal year 1991, the Navy had begun inactivating 42 submarines. The Navy is trying to resolve environmental regulatory problems arising from the disposal of defueled nuclear reactor compartments and is trying a new approach for disposing of submarine hulls--submarine recycling. GAO notes two areas in which inactivation costs could be managed more effectively. First, the Navy needs to further standardize the way in which shipyards define and report costs so that shipyard performance can be compared and further efficiencies implemented. Second, by inactivating submarines at Puget Sound rather than at other shipyards, GAO estimates that the Navy could save as much as $11.5 million per submarine. The Navy is addressing both areas.

GAO found that: (1) at the end of fiscal year 1990, the Navy had initiated the inactivation of 42 of the 100 nuclear-powered submarines it planned to inactivate by 2000; (2) the Navy encountered three environmental compliance issues with defueled reactor compartment disposal; (3) the Navy began recycling submarines in 1990 to help resolve storage problems; (4) inactivations are less costly when they are completed at the Puget Sound Naval Shipyard; (5) the Navy is scheduling inactivations for facilities that effectively reduce costs; and (6) the Navy is assessing work-load policies and practices for nuclear shipyards. GAO also found that: (1) shipyards have increased their efficiency and reduced the number of workdays required to complete inactivations; (2) additional improvements are possible, since the costs between shipyards vary widely; (3) the Navy controls costs by overseeing shipyard inactivation work; and (4) the Navy is estimating standards and developing uniform work categories for inactivations.