The report examines the investment cost of US naval ships in order to determine whether alternative procurement practices might lead to reduced costs. The analysis was limited to privately owned shipyards in the United States and other selected countries and was only concerned with that portion of the work carried out in the shipyard (i.e., it did not consider Government-furnished equipment). The report identifies three ways in which the procurement cost of US naval ships could be reduced. First, research indicated that between 1951 and 1965 the US Navy could have aggregated its ship purchasing so as to realize fully those cost reductions typically associated with volume procurement. Second, the US naval shipbuilding industry could have exhibited more efficiency than it did given US factor costs. Third, the US Navy could purchase ships from selected foreign shipbuilders at reduced cost. (Author)