GAO reports on Navy and USCG shipbuilding woes

Image: GAO

The U.S. Government Accountability Office (GAO) has now released a report recently submitted in testimony before the House Subcommittee on Seapower and Projection Forces, Committee on Armed Services and the Subcommittee on Coast Guard and Maritime Transportation.

GAO notes that Navy and Coast Guard shipbuilding programs have consistently fallen short of expectations over the last two decades. Collectively, they are billions of dollars over cost and years behind schedule. For example, the Navy’s Constellation class frigate program was overcome by issues. As a result, the Navy announced a strategic shift away from the program in 2025—having previously exercised contract options valued at over $3 billion dollars. Similarly, the Coast Guard paused work on two ships and terminated two other ships in its Offshore Patrol Cutter program after a more than five-year delay in delivering the lead ship.

Proposed solutions by federal officials have included reorganizing how shipbuilding programs are managed, increasing shipbuilder workforce wages, and finalizing ship designs before beginning construction, among others. While there is no singular solution, implementing leading practices and GAO’s prior recommendations could help ensure smoother sailing, says the watchdog agency,.

For example, ensuring that new ship design efforts, such as the Navy’s planned new attack submarine program, fully leverage ship design practices used by leading companies will be critical to long-term success. This would include practices like iterative design based on user feedback, completing ship design before beginning construction, and using digital tools.

Additionally, the shipbuilding industrial base—the private companies that build or supply the parts for ships—has not met the government’s submarine construction goals in recent years. GAO’s analysis of the Department of Defense’s (DOD) efforts to invest in the submarine industrial base to improve its capacity found shortcomings. For example, DOD does not know how much funding it expects to need—beyond the more than $10 billion DOD already invested—to solve submarine industrial base challenges such as ensuring needed parts get delivered on time. Without this understanding, decision-makers may not have the information needed to balance funding for the submarine industrial base with other shipbuilding priorities. Further, DOD has not taken key steps to ensure oversight for some of its costliest submarine industrial base investments. Without improvements, such as documented project monitoring, DOD cannot ensure those taxpayer dollars are helping achieve its goals as cost effectively as possible. These findings can provide lessons learned for the Navy, Coast Guard, and other federal agencies in their efforts to build up the maritime industrial base.

• Download the full GAO report HERE