Phila. Navy Yard Pact Questioned

By James Asher, Inquirer Staff Writer
Posted: September 24, 1986

The Hoboken Shipyards of Hoboken, N.J., has asked the General Accounting Office to review a contract awarded to the Philadelphia Naval Shipyard for the overhaul of the Clifton Sprague, a Navy reserve frigate.

On Friday, the North Jersey shipyard requested that the GAO determine whether the $4.45 million contract won by the Philadelphia yard included the same costs that the Hoboken yard was required by the Navy to include in its $5.4 million bid.

Among them were the cost of lodging and feeding the 220 seamen now on the vessel and the amount of overhead allocated by the Navy to the Philadelphia Naval Shipyard.

According to William Gallagher, general manager at Hoboken, the Navy initially had questioned his firm's $5.4 million bid, saying that it was too low because it did not contain adequate labor charges.

Gallagher said Hoboken declined to revise its bid, but also contended that the Navy yard could not complete the overhaul of the Sprague for the $4.45 million it estimated.

Navy officials said yesterday that the existence of a GAO investigation precluded them from discussing the matter.

Because of the prohibition, Navy personnel also could not clear up a discrepancy in the original disclosure of the contract award, which said the Philadelphia yard had won the work with a $5.07 million bid.

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