Strategic mindset sought for US Navy shipbuilding and repair, says GAO report

In a critical response to a recent report from the Government Accountability Office (GAO), the U.S. Navy is reaffirming its commitment to shipbuilding. During his testimony before the Senate Armed Services Committee, John Phelan, the nominee for U.S. Navy Secretary, emphasized that enhancing the Navy’s fleet is a top priority for the administration. He plans to review all existing contracts immediately to identify necessary restructuring.

‘Tradition isn’t working’: Navy’s ineffective management adds to construction

GAO Report Highlights Urgent Needs

The GAO’s report, titled Shipbuilding and Repair: Navy Needs a Strategic Approach for Private Sector Industrial Base Investments, raised significant concerns about the Navy’s shipbuilding and repair strategies. It urged the Navy to establish clear metrics for its investments, assess repair needs, and develop a comprehensive strategy for the ship industrial base. The report noted that while the Navy aims to expand its fleet to address evolving threats, it has struggled to increase the number of operational ships over the past two decades.

According to the GAO, the Navy is projected to have no more ships by fiscal year 2026 than it did when it first released its 30-year shipbuilding plan in 2003. This stagnation is attributed to a combination of slower-than-expected new ship construction and the decommissioning of older vessels. The GAO emphasized that the Navy’s performance in shipbuilding and repair is critical for achieving its future fleet goals.

As the Navy faces these challenges, Phelan’s commitment to reevaluating contracts signals a proactive approach to addressing the issues highlighted by the GAO. The outcome of this review could significantly impact the Navy’s ability to modernize its fleet and respond effectively to national security threats.