WASHINGTON — The Navy shipyard overhaul could ultimately cost more than $200 billion and stretch across half a century, far exceeding earlier projections, according to a new Government Accountability Office report.
The Shipyard Infrastructure Optimization Program, launched in 2018, is intended to modernize dry docks and standard equipment at the four public yards in Virginia, Maine, Washington and Hawaii that maintain the Navy’s nuclear-powered aircraft carriers and submarines.
When the program began, the Navy roughly projected a 20-year timeline and about $21 billion in costs. Program officials have since said those figures were outdated. The GAO report released Wednesday concludes the effort could take 50 years and reach $200 billion.
The watchdog found initial planning “omitted key costs,” and cited rising commodity prices and seismic issues at Puget Sound Naval Shipyard that require retrofits and new construction as major drivers of higher costs and longer schedules.
“Developing the plans and cost estimates to rebuild the Navy’s four public shipyards has taken the Navy years longer, and will cost much more, than originally anticipated due to multiple challenges and changes involved in the program,” the report stated.
The GAO also said additional construction and repair projects have been folded into the program since 2018, and the Navy has made design adjustments based on lessons learned from work already underway.
For example, the combined price tags for dry dock projects at Portsmouth Naval Shipyard and Pearl Harbor Naval Shipyard have grown by more than $2.5 billion compared with the original congressional funding requests, the report said.
Navy shipyard overhaul oversight concerns
The GAO noted the Navy is not required to provide lawmakers with a single, consolidated report on program costs, schedule and risks, instead sharing periodic updates on various elements. The watchdog recommended Congress mandate an annual, standardized report detailing expenditures to date, remaining funding needs and key risks.
“Without a full picture of how much has been spent, what remains to be funded, and what risks may affect SIOP progress, Congress could make consequential decisions for SIOP based on incomplete information, thus risking billions in taxpayer dollars and a lack of program oversight for the decades to come,” the report said.
Navy officials have said they anticipate the modernization will improve maintenance efficiency by about 10 percent for aircraft carriers and 15 percent for submarines once complete. Typical submarine maintenance availabilities that run 25 to 36 months could be shortened by roughly three months, officials have said.
Separately, President Donald Trump has advocated establishing a fifth public shipyard to bolster carrier and submarine readiness. His administration previously locked $307M in military aid to Ukraine amid broader debates over defense spending and priorities.