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Navy Shipbuilding: Enduring Challenges Call for Systemic Change , March 25 , 2025

March 25, 2025

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From the report: “Although maritime threats have been growing, the Navy has not increased its fleet size as planned over the past 20 years. Over this period, GAO has found that the Navy’s shipbuilding acquisition practices consistently resulted in cost growth, delivery delays, and ships that do not perform as expected. For example, GAO identified schedule risks in 2024 for the Constellation class frigate program. Counter to leading ship design practices, construction for the lead ship started before the ship design work was complete, and delivery is expected to be delayed by at least 3 years.

The Navy’s recent practices with the frigate program are similar to its prior performance with its Littoral Combat Ship and Zumwalt Class Destroyer programs. Both programs were hampered by weak business cases that overpromised the capability that the Navy could deliver. Together, these two ship classes consumed tens of billions of dollars more to acquire than initially budgeted and ultimately delivered far less capability and capacity to fleet users than the Navy had promised. The Navy cannot expect to look within its existing playbook to find answers. Current challenges can provide the Navy leadership with the impetus to look for solutions outside of the existing defense acquisition paradigm. Specifically, the Navy can innovate by using effective, proven ship design practices and product development approaches that are rooted in the approaches of industry-leading companies worldwide.

GAO has previously identified leading ship design practices used by commercial ship buyers and builders that the Navy can use to achieve more timely, predictable outcomes for its shipbuilding programs.”

Authors - Government Accountability Office (GAO)

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Government Accountability Office (GAO)

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