The Navy’s shipbuilding and repair rely heavily on private sector contracts, which often fall short of performance goals due to cost overruns and delays. DOD has invested significantly in the industrial base but lacks coordination and strategy, leading to inefficiencies. Without a comprehensive approach, the Navy risks ineffective spending and insufficient infrastructure to meet future needs. Recommendations include enhancing investment visibility, developing metrics, and creating a cohesive strategy to improve shipbuilding outcomes.
The Navy relies heavily on private contracts to construct and repair its ships, which are crucial for fleet expansion and operational readiness. However, many ships face significant delays and increased costs. A strategic framework for investment in the industrial base from the Department of Defense (DOD) is vital for ensuring that these financial commitments yield the necessary improvements in shipbuilding and repair capabilities.
Recent evaluations indicate that the private sector has struggled to meet the Navy’s shipbuilding objectives, resulting in an ongoing gap between fleet expansion goals and actual industrial output. Infrastructure and workforce limitations at shipbuilding companies further complicate meeting these targets. Although private sector ship repair capabilities have improved since 2019, challenges remain, particularly regarding capacity management for unanticipated workloads.
DOD has expended substantial resources, over $5.8 billion from 2014 to 2023, to bolster the shipbuilding industrial base, with plans for additional investments through 2028. Despite this financial commitment, a cohesive coordination of investments between the Navy and the Office of the Secretary of Defense is lacking, which could lead to inefficiencies and duplicated efforts.
Furthermore, the Navy has yet to implement a comprehensive strategy for managing its ship industrial base. Without clear performance metrics or a consolidated approach, the Navy cannot effectively assess whether its investments are achieving intended outcomes or supporting fleet growth effectively. A failure to develop a strategy risks funding excessive infrastructure that may disrupt market competition.
The lack of stable workload projections forms another hurdle as the Navy often alters its plans, negatively impacting future infrastructural investment decisions within the industrial sector. Despite the existing competing priorities to foster competition while protecting established contractors, creating a viable strategy will allow the Navy to navigate these challenges better.
Recommendations from the GAO include enhancing visibility across investments, establishing clear performance metrics, and crafting a strategy that aligns with national defense objectives. Although the Navy has expressed agreement with the recommendations, they have yet to take decisive action. Creating and enforcing a thoughtful ship industrial base strategy will be crucial for achieving the Navy’s future operational goals.
In summary, the Navy’s reliance on the private sector for shipbuilding and repair highlights the critical need for a strategic approach to industrial base investments. With considerable financial commitments already made and future investments planned, it is essential for the Navy and DOD to enhance coordination, establish robust performance metrics, and develop a cohesive strategy to support the industrial base effectively. Addressing these challenges will increase the likelihood of achieving the Navy’s goals for fleet expansion and operational readiness.
Original Source: www.gao.gov
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