Northrop Grumman yard noncompliant with some Pentagon rules

By Robert McCabe
The Virginian-Pilot
© October 19, 2010

NEWPORT NEWS

A Pentagon assessment examining certain cost-control and work-scheduling criteria has found Northrop Grumman Shipbuilding-Newport News "noncompliant in several areas," according to a recent report in a defense industry trade publication.

A review by the Defense Contract Management Agency found the company's shipyard, which builds all of the nation's aircraft carriers and teams with another shipyard to build the country's submarines, was not "fully heeding the rules for earned value management," according to Inside the Pentagon.

"Earned value management" consists of 32 rules and is a "key approach used by Pentagon acquisition chief Ashton Carter to flag problems, forecast cost and schedule performance, and get troubled programs back on track," the publication reported.

The report comes while Northrop Grumman Corp. is taking steps toward the possible spinoff of its shipbuilding unit, including the Newport News shipyard.

The assessment conducted at the Newport News shipyard five months ago is part of a series of Defense Department reviews looking at how shipbuilders and other defense contractors properly control the cost and schedule of their work, Inside the Pentagon reported.

Another "focused review" is set to begin later this month at General Dynamics' Electric Boat unit in Groton, Conn., with which the Newport News facility teams to build U.S. submarines. The review of Electric Boat could take up to 45 days to complete, Debra Bingham, a spokeswoman with the Defense Contract Management Agency, told the publication. Bingham could not be reached for comment Monday.

Margaret Mitchell-Jones, a Northrop spokeswoman, provided an e-mail response Monday and referred all further questions to the Pentagon or the Navy.

The shipyard's earned-value-management system "was validated back in December 1991 as having a program that meets the intent of the Defense Department requirements," according to the statement.

The Navy referred questions about the audit, which is ongoing, to the Defense Contract Management Agency. No final report has been issued yet, said Capt. Cate Mueller, a Navy spokeswoman.

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Military industrial complex

Submitted by Blueneck on Tue, 10/19/2010 at 12:18 pm.

This explains why Northrop Grumman wants to get rid of the shipyard. Under the new pentagon rules they won't be able to bilk the taxpayers as defense contractors usually do. How patriotic for these companies to want to overcharge the tax-payer funded federal government. These people should be indicted for treason. It is the duty of all Americans to keep the cost of government down. That included defense contractors. President Eisenhower warned about the military industrial complex. This is a good illustration of what he was talking about.