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