Word: reinspection
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Dates: during 1980-1989
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Despite the $484 million settlement, the troubles at the Electric Boat division were not over. In 1981 the company's own inspectors discovered that workers had neglected to make critical welds in several submarines and covered up the errors with faked welding reports. The fiasco forced Electric Boat to reinspect all the welds and make repairs costing about $100 million. To recoup its loss, General Dynamics decided to turn to, yes, the Pentagon. The company argued that the Navy was liable for paying the repair bill under an obscure but standard clause in the submarine contract that called...
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