Title page
Contents
Highlights 2
Letter 6
Background 8
Navy Stakeholders Involved in Overseeing Cruiser Modernization 9
Types of Ship Maintenance and Modernization 12
Contracting Approach 13
Cruiser Modernization Strategy 13
Cruiser Modernization Approach 14
Upcoming Surface Ship Maintenance and Modernization Efforts 16
Navy Spent about $3.7 Billion on Cruiser Modernization, Experienced Significant Quality Issues, and Recently Deployed One of These Ships 18
Navy Planned to Modernize 11 Ships but Expects to Return Only Three to Active Service 18
Cruiser Modernization Experienced Significant Cost Growth and Schedule Delays 22
Cruiser Modernization Efforts Hindered by Poor Quality 24
Insufficient Planning Led to Poor Execution and Outcomes 30
Cruiser Modernization Effort Did Not Include Key Planning and Oversight Tools 31
Navy Faced Numerous Challenges to Accurately Planning Cruiser Maintenance and Modernization Work 36
Planning Issues and Unplanned Work Impacted the Navy's Ability to Efficiently Manage Cruiser Modernization Effort 41
Weakened Quality Assurance Tools and Uncoordinated Work Hindered Cruiser Modernization Oversight 46
Navy Took Actions That Weakened Use of Contract Quality Assurance Tools 46
Key Stakeholders Do Not Have Clear Oversight Roles to Manage Coordination 55
Navy Has Neither Extended the Service Lives of the Modernized Cruisers as Planned Nor Supported Its Divestment Decisions 60
Conclusions 64
Recommendations for Executive Action 64
Agency Comments 65
Appendix I: Objectives, Scope, and Methodology 67
Appendix II: Comments from the Department of Defense 72
Appendix III: GAO Contact and Staff Acknowledgments 75
Related GAO Products 76
Table 1. Cruiser Modernization Corrective Action Requests (CAR) by Ship 25
Table 2. Planning and Oversight Tools for Programs Using DOD's Major Capability Acquisition Pathway Compared to the Navy's Cruiser Modernization Effort 31
Table 3. Cruiser Modernization Growth Work Change Processing Times from Creation to Settlement 42
Table 4. Cruiser Maintenance and Modernization Growth Work Contract Change Cycle Time, 2016 to 2023 45
Table 5. Responsibilities of Key Stakeholders Responsible for Ship Maintenance and Modernization 56
Table 6. Changes in USS Gettysburg's Decommissioning Date, Pre- and Post-Modernization and Current Divestment Date 60
Figure 1. Guided Missile Cruiser 9
Figure 2. Organizational Chart for Navy's Cruiser Modernization Effort 10
Figure 3. Example of Cruiser Modernization Strategy for One Ship 15
Figure 4. Location of Cruiser Chief of Naval Operations Maintenance and Modernization Periods 16
Figure 5. Status of Navy Cruiser Modernization as of August 2024 19
Figure 6. USS Cowpens Flooring Nearly 8 Years into Modernization 20
Figure 7. USS Vicksburg's Combat Information Center 7 Years into Modernization 21
Figure 8. Cruiser Modernization Cost Growth as of September 2023 23
Figure 9. Cruiser Modernization Schedule Delays Through Completion (as of August 2024) 24
Figure 10. Damaged Rubber Window of Sonar Dome 27
Figure 11. Use of Unauthorized Interventions, Including as Seen on Television Sealant Product and Plastic Wrap (left), Expanding Foam, Tape,... 28
Figure 12. Ship 5 Gun 29
Figure 13. Navy Maintenance Period Planning Process for Surface Ships Since 2015 38
Figure 14. Categories of Contract Changes Due to Growth Work across 12 Contracts for Cruiser Modernization 43
Figure 15. Timeline of Navy's Actions That Hindered Quality Control Over Navy Ship Maintenance and Modernization 47
Figure 16. Completion of Contractor Performance Assessment Reporting System Evaluations for Each Evaluation Period in Maintenance and Modernization... 53
Figure 17. Incomplete Cabling and Electrical Distribution on USS Vicksburg 58
Figure 18. Changes in Cruiser Decommission and Divestment Dates 61