Summary

In response to a congressional request, GAO reviewed the Department of Justice's management of three investigations into allegedly false shipbuilding contract price adjustment claims. The Navy had submitted the allegations to Justice and, after investigating the claims, Justice declined prosecution.

GAO found that Justice investigated the claims of one shipbuilding firm between February 1978 and August 1983, assigning from 1 to 15 attorneys and investigators to the investigation at any given time. After a review of the investigation results, Justice concluded that the investigation should cease and prosecution should be declined. Justice also investigated the claims of another shipbuilding firm between December 1974 and September 1979, staffing the investigation with a trial attorney and up to eight Federal Bureau of Investigation (FBI) agents. FBI and Justice agreed not to prosecute on certain items and conducted grand jury sessions on another item. After a review of the evidence, it was agreed not to prosecute on the remaining item. Finally, Justice investigated the claims of a third shipbuilding firm between February 1978 and December 1981, assigning from 2 to 12 attorneys and investigators to the investigation. During the investigation, two grand juries were used to subpoena records and question witnesses. In July 1984, Justice reopened its investigation of the claims because of new allegations and additional evidence.