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Title page 1

Contents 4

Highlights 2

Letter 8

Background 12

Navy Long-Range Planning for Shipbuilding and Ship Repair 12

Shipbuilding and Ship Repair Industrial Base 14

Key Navy and DOD Organizations with Responsibilities Related to Shipbuilding and Repair 17

Ship Industrial Base Struggles to Meet Navy's Goals for Shipbuilding and Ship Repair 19

Shipbuilding Industrial Base Has Not Historically Met the Navy's Goals 19

Industrial Base Infrastructure and Workforce Limitations Make Shipbuilding Delays Difficult to Overcome 25

Ship Repair Industrial Base Has Not Met Schedule Goals Though It Has Seen Some Recent Improvements 29

Ship Repair Industrial Base Has Capacity but Cannot Always Surge to Accomplish Unplanned Work 30

DOD Has Yet to Fully Determine Effectiveness of or Ensure Visibility into Billions Spent on the Ship Industrial Base 38

DOD Has Spent Billions to Bolster the Shipbuilding Industrial Base Over the Last Decade and Plans to Spend Billions More Through 2028 39

DOD Has Yet to Fully Assess the Effectiveness of Support for the Shipbuilding Industrial Base 44

Navy Plans to Provide Funding for Private Ship Repair Infrastructure Improvements Without Determining Needed Capacity 53

Navy's Approach to Industrial Base Management Is Not Guided by a Long-Term Strategy or Coordinated Leadership 55

Navy's Plans and Strategies to Provide Stable Projection of Workload Are Ineffective at Encouraging Industry Investment 55

Navy Faces Challenges in Balancing Competing Industrial Base Priorities 63

Navy Does Not Have a Strategy or Coordinated Leadership for Managing Ship Industrial Base Challenges 69

Conclusions 74

Recommendations for Executive Action 75

Agency Comments 76

Appendix I: Objectives, Scope, and Methodology 78

Appendix II: Misalignment Between Navy Shipbuilding Plan for Growth in the Fleet and the Navy's Battle Force Assessments 88

Appendix III: Examples of Shipbuilder Infrastructure Problems 91

Appendix IV: Purpose and Legal Authority for Department of Defense Investment Programs in Navy Shipbuilding 92

Appendix V: GAO Contacts and Staff Acknowledgments 93

Related GAO Products 94

Tables 4

Table 1. Number of Navy Planned Delivery of VCS and DDG 51 Compared with Actual Delivery Rates, Fiscal Years 2019-2023 20

Table 2. Navy Projection for Adding Surface Ship Dry Dock Capacity by Fleet Concentration Area, as of 2024 34

Table 3. Descriptions of Navy Direct Investment Categories for the Shipbuilding Industrial Base 42

Table 4. Descriptions of Office of the Secretary of Defense (OSD) Direct Investment Categories for the Shipbuilding Industrial Base 43

Table 5. Fleet Size by Ship Type Called for Based on Recent Navy Analysis by Fiscal Year 89

Table 6. Selected Direct Investment Legal Authorities for the Shipbuilding Industrial Base 92

Figures 5

Figure 1. Map of Major Shipbuilders for U.S. Navy Ships, as of September 2024 15

Figure 2. Map of Private Ship Repair Companies Conducting Complex Navy Ship Repair Work by Fleet Concentration, Area as of May 2024 17

Figure 3. Navy Ship Schedule Delays in Months for Ships Under Construction, as of September 2024 23

Figure 4. Navy Estimation of When Workload Could Exceed Capacity Based on Private Repair Companies' Workforce Levels, as of February 2024 36

Figure 5. Contract Incentives for Private Investment and Direct Investments for the Shipbuilding Industrial Base, Fiscal Years (FY) 2014-2028 40

Figure 6. Extent to Which the Navy and OSD Have Performed Selected Oversight Functions to Determine Effectiveness of Shipbuilding Industrial Base Funding 45

Figure 7. Greatest and Least Number of Ships Planned for Procurement in Navy Annual Shipbuilding Plans, Fiscal Years 2019-2025 57

Figure 8. Change in Fiscal Years 2020-2024 Navy Projections for Domestic Ship Repair Workload 59

Figure 9. Examples of Competing Priorities in the Navy Shipbuilding Industrial Base 64

Figure 10. Examples of Competing Priorities in the Navy Ship Repair Industrial Base 66

Figure 11. Organizational Structure for the Navy with Ship Repair Oversight Responsibility 72

Figure 12. Navy Planned Fleet Size Growth from Shipbuilding Plans, Fiscal Years 2016-2025 88

Figure 13. Examples of Key Infrastructure Limitations for Navy Shipbuilders 91

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