Shipyard savings claim questioned

Northrop Grumman says it will save the government some $600 million by divesting its shipbuilding operation and closing the Avondale, La., shipyard. But the Pentagon's audit agency concluded it can't verify the claim. More than 90 percent of the claimed shutdown costs were unsupported because the contractor could not provide evidence of its underlying assumptions, the Navy said. (Source: Bloomberg, 07/12/11)