U.S. Navy to seek prices for unlimited guarantee on new frigates

The U.S. Navy plans to request price for an unlimited guarantee warranty on its new frigate newbuildings. The U.S. auditing agency the Government Accountability Office in August published a report criticising the Navy for not using a long-term warranty in the new shipbuilding programme. The Navy's current request for proposals would have the shipbuilder pay the costs to correct defects for which it is responsible up to US$5 million per ship. After that payout is reached, the government would have to pay the remaining costs. If the Navy used a warranty, then the shipbuilder would be monetarily responsible for any defects for which it is at fault without any price limit.