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The Secretary of the Navy's Proposal To Use Public Law 85-804 To Modify the LHA and DD-963 Ship Construction Contracts With Ingalls Shipping Division of Litton Systems, Inc.

Published: Aug 25, 1976. Publicly Released: Aug 25, 1976.
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Highlights

The Department of the Navy proposed to use the authority of Public Law 85-804 to provide financial relief to the prime contractor under two ship construction contracts. The proposed action would increase the ceiling price of the contracts by a specified amount in return for several concessions by the contractor. The proposed actions were within the authority conferred by Public Law 85-804. The settlement negotiated with the contractor appeared to be necessary to facilitate the national defense and to relieve uncertainties and cash flow demands that jeopardized the financial position of the contractor. Alternatives to the proposed action did not appear to offer improved or acceptable options.

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