Navy's Service Life Extension Program (SLEP)

The Navy's case study on the proposed service life extension work, and the relative advantages in awarding it to either a Naval shipyard or a private shipyard were analyzed. The Navy considered splitting the work, but felt the advantages in learning curve and work force management clearly pointed to doing all four carriers at one yard over a specified period of time. The Navy's original cost study needed to be adjusted in several areas. The following assumptions and resultant cost factors were used in the comparison of the two yards: the use of the ships' crew, the Civil Service retirement factor, the wage board reform concept, and corporate taxes lost. To determine precisely the productivity advantage of one shipyard over another would be difficult. The Navy's rational was logical and the current figures in favor of the private shipyard were more realistic than the first cost study.