Pentagon Questions Northrop’s $600 Million in Avondale Savings

The Pentagon’s audit agency has concluded it can’t verify Northrop Grumman Corp.’s assertion that divesting its shipbuilding business and shutting one of its three yards will save the U.S. as much as $600 million.

The Defense Contract Audit Agency in a Feb. 1 audit also concluded that Northrop’s claim for $310 million in federal reimbursement to close the Avondale, Louisiana shipyard is “unsupported,” according to a summary.