Rickover says sub yards gouging US on overruns
Adm. Hyman Rickover, accusing shipbuilders of gouging the taxpayer by knowingly submitting low contract bids, called for legislation to thwart cost-overrun claims and let the Navy build its own submarines.
The maverick admiral -- father of the nuclear submarine -- said the nation's only two submarine yards were the chief culprits in submitting claims against the government in order to boost their profits. He identified them as the Electric Boat Division of the General Dynamics Corporation, the country's biggest defense contractor, and the Newport News Shipbuilding & Drydock Company.
Adm iral Rickover was testifying before the defense subcommittee of the House Appropriations Committee.