The Navy’s effort to fix and improve its shipyards will take decades longer and cost billions more than initially planned—and Congress has not been systematically kept apprised of the growing complexity of the Shipyard Infrastructure Optimization Program, the Government Accountability Office has found.
“Without a full picture of how much has been spent, what remains to be funded, and what risks may affect SIOP progress, Congress could make consequential decisions for SIOP based on incomplete information, thus risking billions in taxpayer dollars and a lack of program oversight for the decades to come,” the GAO wrote in a report released Friday.
The Navy must already submit reports related to its shipyard construction efforts to comply with nearly a dozen legislative provisions. But the watchdog agency suggested that Congress should require the service to “annually report consolidated, standardized status updates,” including revised cost and schedule estimates for the entire plan.
The Navy’s public shipyards—Norfolk Naval Shipyard, Pearl Harbor Naval Shipyard, Portsmouth Naval Shipyard, and Puget Sound Naval Shipyard— maintain and update the service’s nuclear-powered submarines and aircraft carriers. The service has struggled for years with maintenance backlogs that have, in at least one case, led a submarine to be retired early rather than fixed up.
Planning for the shipyard upgrades started in 2018 and has taken several years longer than anticipated because the Navy “underestimated the time needed” and “did not fully account for the many challenges, uncertainties, and complex analyses needed to sufficiently plan for an endeavor of SIOP’s magnitude,” the report states.
New projects and costs were also discovered during design and planning.
For example, the Navy found at least $1 billion would be needed for “facility retrofits and new construction to mitigate newly assessed seismic risks at Puget Sound Naval Shipyard” since 2023, the report states. “In 2023, the Navy completed emergency drydock retrofits and repairs. The Navy also requested $830 million to conduct seismic upgrades for Dry Dock 4…in its fiscal year 2026 budget request.”
The GAO’s analysis ran from September 2024 through September 2026.
Earthquake risks were included in SIOP’s original 2018 assessment, the GAO noted.
Many shipyards and their facilities were built close to a century ago, with problems seen today compounded on top of “long-deferred maintenance and worsening decrepitude during that time. As a result, unexpected facility and construction site conditions led to new projects being identified or additional work added to projects during construction,” the report states.
Navy leaders are expected to consider the SIOP plan and cost estimate by this month.
The GAO made three other recommendations, including reviewing future program needs in the oversight framework and documenting the SIOP’s role and duties to improve project risk management.
The Navy hasn’t “fully documented” SIOP’s roles and responsibilities despite creating multiple organizations to manage the program’s projects.
“Doing so would formalize their new SIOP roles and help to ensure not only their ability to effectively implement SIOP’s essential projects but also the continuity of the critical shipyard operations to maintain and modernize the U.S. naval fleet now and throughout SIOP’s extended timeline,” the GAO wrote.
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