This paper examines some of the circumstances surrounding Litton's shipbuilding claims. It begins by discussing the business backgrounds of Charles B. Thornton and Roy L. Ash, the founding and development of Litton Industries, the founding and development of Ingalls Shipbuilding Company, and the acquisition of Ingalls Shipbuilding by Litton Industries. Areas explored include the concept of growth by acquisition versus internal growth, the economic problems faced by the shipbuilding industry, the United States' position in the world shipbuilding market, and the concept of total package procurement as it relates to the U. S. Navy's ship procurement process. Finally, this thesis looks closely at the financing of Litton's new automated shipyard, the award of the amphibious assault ship (LHA) and DD-963 class destroyer contracts to Litton Industries, the cost overrun on the LHA program, and the testimony of Gordon Rule before the subcommittee on Priorities and Economy in Government. (Author)


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