[BITList] closing

[x50type at cox.net]

$310 million to close Avondale.................WTF

I note later in this article that the cost of the USN ships they build ["landing platform dock" ships in the San Antonio class, which are designed to haul Marines and their gear to war] has come down from $1.8 billion to only $1.0 billion each. for reference the ultra luxury liner ‘queen mary 2’ cost less than half the $1.8 billion,

I wonder why incentive bonuses are paid when the shipyard closes?

ct


Avondale Shipyard closure expenses should not be reimbursed, military auditors say
Published: Thursday, July 14, 2011, 7:00 AM 
 By Bruce Alpert, Times-Picayune 
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A military auditing agency is challenging Huntington Ingalls Industries' request for a federal reimbursement of $310 million for costs related to its planned closure of Avondale Shipyard.

 
The Defense Contract Audit Agency, in an audit dated Feb. 1 and summarized in a just-released semiannual report by the Department of Defense inspector general, says there is a lack of proof to support the company's claim that shuttering the shipyard, one of its three, would save the federal government $600 million. 
Both the federal savings and reimbursement costs claimed by the company should be "considered unsupported," the audit said.

The audit, first reported by Bloomberg's news service, specifically "questioned $23.5 million in labor, severance pay, incentive bonuses and relocation expenses."








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