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GAO-11-388R: 

United States Government Accountability Office: 
Washington, DC 20548: 

March 29, 2011: 

Congressional Committees: 

Subject: Defense Infrastructure: Ability of Ship Maintenance 
Industrial Base to Support a Nuclear Aircraft Carrier at Naval Station 
Mayport: 

Since established as a naval base in December 1942, Naval Station 
Mayport, Florida,[Footnote 1] as grown to become the third largest 
naval fleet concentration area in the United States and the second 
largest on the East Coast. During this time, the base has served as 
the home port for multiple types of Navy surface ships--reaching a 
peak of over 30 ships including two conventional carriers in 1987. The 
most recent conventionally powered carrier to be homeported there--the 
USS John F. Kennedy--was decommissioned in 2007. Prior to the USS John 
F. Kennedy's retirement, the Department of Defense's (DOD) 2001 
Quadrennial Defense Review called for the Navy to provide more 
warfighting assets more quickly to multiple locations, and, to meet 
this requirement, the Navy made a preliminary decision to homeport 
additional surface ships at Mayport. The Navy subsequently prepared an 
environmental impact statement to evaluate a broad range of strategic 
home port and dispersal options for Atlantic Fleet surface ships in 
Mayport and on January 14, 2009, issued its decision to pursue an 
option that would include the first-time homeporting of a nuclear- 
powered aircraft carrier at Mayport. The Navy's decision was reviewed 
as part of the 2010 Quadrennial Defense Review, which in its report 
supported the Navy's decision to homeport a nuclear-powered aircraft 
carrier in Mayport, indicating that homeporting an East Coast carrier 
in Mayport would contribute to mitigating the risk of a terrorist 
attack, accident, or natural disaster occurring in Norfolk, Virginia, 
where currently all of the nuclear-powered aircraft carriers on the 
East Coast are homeported.[Footnote 2] 

In House Report 111-491, accompanying a proposed bill for the Fiscal 
Year 2011 National Defense Authorization Act (H.R. 5136), the House 
Committee on Armed Services directed the Secretary of the Navy to 
report by December 15, 2010, to the congressional defense committees 
on: 

* the ability of the private ship maintenance industrial base[Footnote 
3] in northeast Florida to support nuclear-powered aircraft carrier 
maintenance requirements; 

* the likely costs to the Navy that could result from establishing 
such maintenance capabilities within the local industrial base; and: 

* the impacts on cost and workforce scheduling that could result if 
the Navy must provide the maintenance workforce from another nuclear- 
powered aircraft carrier home-port location.[Footnote 4] 

The Navy issued its report to the congressional defense committees on 
December 29, 2010.[Footnote 5] In the same House report, the committee 
also directed GAO to assess and report on the Secretary of the Navy's 
report within 90 days of receiving the Navy's report and to conduct an 
assessment of aspects of the local ship maintenance industrial base 
and determine to what extent the homeporting of a carrier at Mayport 
would affect carrier maintenance costs. In response to the House 
report, our objectives were to determine to what extent (1) the 
private ship repair firms in northeast Florida can meet the 
maintenance requirements of a nuclear-powered aircraft carrier and (2) 
the Navy's December 2010 report addresses the provisions directed by 
House Report 111-491. The House report also directed us to assess how 
the construction of maintenance facilities for a nuclear-powered 
aircraft carrier at Naval Station Mayport will affect maintenance 
costs for the carrier, including recurring and nonrecurring costs over 
a 10-year budget window. In March 2011, we issued a report providing 
our independent cost estimate of the full life-cycle costs of 
establishing a nuclear aircraft carrier home port at Mayport, a report 
that includes our response to this objective.[Footnote 6] We have 
included a summary of that report, including the total recurring and 
nonrecurring costs over a 10-year budget period, in enclosure I. 

Scope and Methodology: 

To determine the extent to which the private ship repair firms in 
northeast Florida can meet the maintenance requirements of a nuclear- 
powered aircraft carrier, we analyzed Navy workload data to determine 
the impact of the Navy's proposed ship decommissioning and homeporting 
plans at Naval Station Mayport and reviewed historical evidence on the 
ability of the private ship repair firms to meet Navy nuclear-carrier 
maintenance requirements. We also reviewed various Navy documents 
related to the maintenance and workload requirements of nuclear-
powered aircraft carriers, including the Office of the Chief of Naval 
Operations Instruction 4700.7L on the Maintenance Policy for United 
States Navy Ships; the Office of the Chief of Naval Operations Notice 
4700 on the Representative Intervals, Durations, and Repair Mandays 
[Footnote 7] for Depot Level Maintenance Availabilities of U.S. Navy 
Ships; and the CVN 68 Aircraft Carrier Class Maintenance Plan[Footnote 
8]. We also interviewed Navy officials to determine private-sector 
nuclear aircraft carrier maintenance requirements. We did not include 
in our review the work performed on the carrier's nuclear propulsion 
plant and its associated systems by the public shipyard workforce 
[Footnote 9] as that work is not supported by private ship repair 
firms.[Footnote 10] To further evaluate the Navy's maintenance 
requirements and the infrastructure needed to support nuclear-powered 
aircraft carriers, we interviewed officials and visited facilities at 
Norfolk Naval Shipyard, Virginia, and Naval Air Station North Island, 
California. During our visits, we discussed the infrastructure 
upgrades made at these locations to berth and homeport nuclear-powered 
aircraft carriers. We interviewed Navy officials and visited 
facilities at Naval Station Mayport, Florida, to determine the extent 
of the upgrades planned at the station to support homeporting of a 
nuclear-powered aircraft carrier. We met with representatives from 
private sector ship repair firms in northeast Florida, such as BAE 
Systems Southeast Shipyards Jacksonville, Earl Industries, North 
Florida Shipyards, Inc., and others to discuss their capabilities and 
capacities to support the maintenance requirements of a nuclear-
powered aircraft carrier and the possible impacts of decommissioning 
the frigates on the private firms' business operations. We also met 
with regional ship repair trade associations in Norfolk, Virginia, and 
Mayport, Florida, and the national private ship repair trade 
association in Washington, D.C., to discuss any potential impacts 
resulting from a nuclear aircraft carrier move to Mayport on the 
private ship repair industry. 

To determine the extent to which the Navy's report addresses the 
provisions directed by House Report 111-491, we reviewed the Navy's 
report and assessed whether the Navy provided clear and complete 
responses and the necessary information as directed by the House 
report. As part of our assessment, we obtained and analyzed documents 
used by the Navy to develop its responses. In addition, we compared 
the Navy's responses to information and data we collected during our 
own independent review of the capability of the private ship repair 
firms in northeast Florida to support the maintenance requirements of 
a nuclear-powered aircraft carrier and the costs associated with 
homeporting a carrier at Naval Station Mayport. Where appropriate, we 
assessed the extent to which the Navy's report addressed the 
provisions as directed by the House report and discussed those areas 
that we believed were not fully addressed with officials responsible 
for the development of the Navy's report. 

We conducted this performance audit from July 2010 to March 2011, in 
accordance with generally accepted government auditing standards. 
Those standards require that we plan and perform the audit to obtain 
sufficient, appropriate evidence to provide a reasonable basis for our 
findings and conclusions based on our audit objectives. We believe 
that the evidence obtained provides a reasonable basis for our 
findings and conclusions based on our audit objectives. 

Summary: 

Private ship repair firms in northeast Florida will likely be able to 
support the maintenance requirements of a nuclear aircraft carrier if 
one is homeported at Naval Station Mayport in 2019 as the Navy plans. 
Of the 20 surface ships currently homeported at Mayport, the Navy 
plans to decommission 12 guided-missile frigates between 2011 and 
2015. According to the Navy, the total depot maintenance workload at 
Mayport has averaged 225,000 work days per year over the last several 
years. The Navy estimates that the decommissioning of the frigates 
will reduce this average workload by about 135,200 work days after all 
of the frigates have been decommissioned in 2015--a potential decrease 
of 60 percent if no other work is allocated to Mayport. According to 
private ship repair firm representatives, this decrease in workload 
will likely result in the loss of some jobs for ship repair firms in 
northeast Florida, but the Navy expects the private ship repair firms 
to be able to support a nuclear-powered aircraft carrier in 2019 for 
five key reasons. 

* The Navy has implemented mitigation measures to offset the decreased 
workload, such as transferring the maintenance of three barges from 
Norfolk Naval Shipyard to Mayport. These measures will likely not 
fully offset the decreased workload, but the Navy has stated it is 
continuing to explore other mitigation options, such as the 
homeporting of some littoral combat ships.[Footnote 11] Additionally, 
the Navy expects the proposed homeporting of a nuclear aircraft 
carrier at Mayport in 2019 to further increase the workload at Mayport 
by an average of 28,800 work days per year. 

* The northeast Florida area is home to three master ship repair firms 
certified by the Navy to have the capabilities and capacities to 
support the maintenance requirements of U.S. Navy surface ships, 
including aircraft carriers. Each of these firms has significant 
production and administrative facilities either on or near Naval 
Station Mayport, and officials from these firms told us they will 
maintain their presence in northeast Florida. Additionally, these 
private ship repair officials told us they have options by which they 
can adjust to fluctuations in workload. For example, two of the firms 
have ship repair personnel at other Navy home ports that could be used 
to supplement the firms' workforces at Mayport during workload 
increases or used to transfer personnel during workload decreases. 
Similarly, there is a large transient, temporary ship repair workforce 
that can be used to supplement each of the ship repair firm's full-
time workforce as needed. Because of these options, private ship 
repair firm officials told us that although they are concerned over 
the projected decrease in workload, workload fluctuations are common 
in the ship repair industry and their firms would be able to withstand 
any lulls in workload at Mayport and that it would not impact their 
ability to support a nuclear carrier beginning in 2019. 

* The tasks required of the private ship repair firms to support a 
nuclear carrier are the same as those performed on conventional 
carriers in the past and the other types of ships currently homeported 
at Mayport. 

* Private ship repair firms in northeast Florida have previously 
demonstrated the ability to support carrier maintenance. In fact, the 
largest aircraft carrier availability ever performed outside of a 
public shipyard was completed on the USS John F. Kennedy in Mayport in 
2003. 

* Finally, according to the Navy, the contracting strategy used with 
the private ship repair firms provides the firms with early visibility 
into the Navy's maintenance planning, thus allowing the firms to 
appropriately size their workforces in anticipation of future workload. 

The Navy's December 2010 report on the ability of private ship repair 
firms in northeast Florida to support nuclear-powered aircraft carrier 
maintenance requirements at Naval Station Mayport generally addressed 
the three provisions as directed in House Report 111-491, but we found 
that the Navy could have provided clearer and more complete responses 
in its report by including additional information that could help 
provide Congress with a better understanding of its conclusions 
regarding the sufficiency of the capabilities and capacities of ship 
repair firms near or around Naval Station Mayport to support the 
maintenance requirements of a nuclear-powered aircraft carrier. 

* First, regarding the ability of the private ship repair firms to 
support a carrier, the Navy discussed the capabilities of the various 
firms, but the report did not fully provide information on the 
maintenance requirements of a nuclear-powered carrier and how that 
work would be allocated to the private sector. Including such 
information would have provided additional support for the Navy's 
conclusion that the various firms have sufficient capabilities to 
support a nuclear carrier. Also, the report did not fully address the 
impact of the decreasing Navy ship workload on the various private 
ship repair firms and whether this decrease would affect their ability 
to meet the maintenance requirements of a nuclear aircraft carrier. 

* Second, regarding the costs to establish additional ship repair 
maintenance capabilities in northeast Florida, the Navy's report 
discussed the types of maintenance work performed by the various ship 
repair firms and concluded that no additional costs would be incurred 
as the various firms already have the required capabilities, however, 
the report does not provide the full context to the reader to support 
the report's conclusion. Specifically, the report did not explain the 
differences between propulsion plant and related systems and 
nonpropulsion plant maintenance work. Nor did it explain the Navy's 
use of public shipyard employees to accomplish the propulsion plant 
maintenance and private ship repair firms to accomplish nonpropulsion 
plant maintenance or describe the capabilities needed to accomplish 
those tasks. Including the differences between propulsion plant and 
nonpropulsion plant maintenance and the Navy's strategy to accomplish 
this work would have further explained the Navy's conclusion that the 
private ship repair firms already have the capabilities to support the 
nonpropulsion maintenance requirements of a nuclear aircraft carrier 
and that there would not be any need for additional capabilities 
within the local industrial base. 

* Third, regarding impacts on costs and workforce scheduling, the Navy 
reported on the maintenance workload associated with a nuclear 
aircraft carrier and the potential cost to the Navy if the public 
shipyards needed to perform 10 percent more of the work than 
anticipated, but the report did not fully discuss the Navy's workforce-
shaping procedures and the One Shipyard concept, which helps ensure 
that the required number of workers and skill sets are available when 
needed to meet current and planned maintenance requirements.[Footnote 
12] This information would have provided the reader with better 
context to understand the Navy's potential workforce-scheduling 
strategies and any impacts that could result if the Navy must provide 
the maintenance workforce from another home-port location than 
Mayport. Although the responses in the Navy's report could have been 
clearer and more complete, the additional information lacking in the 
report is available in other sources including two other recent Navy 
reports previously issued to Congress or the congressional defense 
committees--one on the assessment of the U.S. ship repair industrial 
base[Footnote 13] and the other on homeporting alternatives for 
Mayport,[Footnote 14] as well as in this report and other reports we 
have recently issued on the Mayport carrier homeporting proposal. 

We are not making any recommendations in this correspondence. After 
reviewing a draft of this product, DOD officials said that the 
department had no comments. 

Background: 

Nuclear-Powered Aircraft Carrier Maintenance: 

The U.S. Navy currently maintains 11 nuclear aircraft carriers--5 
homeported on the West Coast of the United States, 5 on the East Coast 
of the United States, and 1 in Yokosuka, Japan. Of the West Coast 
carriers, three are homeported in San Diego, California; one in 
Bremerton, Washington; and one in Everett, Washington. All five of the 
East Coast carriers are homeported in Norfolk, Virginia. As some of 
the most technologically advanced ships in the world, nuclear aircraft 
carriers require continuous and regularly scheduled maintenance to 
keep them ready to meet mission requirements. The Navy identifies 
three levels of aircraft carrier maintenance: 

* Organizational--The ship's crew performs as-needed, routine tasks 
such as replacing minor parts, lubricating machinery, and preventive 
inspections. 

* Intermediate--Navy and civilian personnel from designated facilities 
use specialized skills to conduct more extensive work on a schedule of 
periodic cycles. 

* Depot--Personnel at public and private shipyards perform maintenance 
that requires skills, facilities, or capacities normally beyond those 
of the organizational and intermediate levels, including ship 
overhauls, alterations, refits, restorations, and nuclear refueling. 

Depot-level maintenance periods, also known as availabilities, require 
the most resources and personnel of the three levels of nuclear 
aircraft carrier maintenance. There are four types of depot-level 
availabilities: 

* carrier incremental availabilities lasting approximately 1 month 
each and performed twice in every 32-month operating cycle; 

* planned incremental availabilities lasting approximately 6 months 
each and performed once in a 32-month operating cycle unless a docking 
planned incremental availability is scheduled; 

* docking planned incremental availabilities lasting about 10.5 months 
each and performed after two consecutive cycles when planned 
incremental availabilities were performed; and: 

* refueling complex overhaul lasting about 39 months and performed 
once near the mid-life of the carrier, at around 23 years of the 
carrier's service life. 

Over its expected 50-year service life, a nuclear carrier will undergo 
a total of 32 carrier incremental availabilities, 12 planned 
incremental availabilities, 4 docking planned incremental 
availabilities and one refueling complex overhaul as shown in figure 1. 

Figure 1: Depot-level Availability Maintenance Schedule of a Nuclear- 
Powered Aircraft Carrier over Its Expected 50-Year Service Life: 

[Refer to PDF for image: illustration] 

First half of aircraft carrier service life: 23.5 years: 
PAI: 1; 
CIA: 1; 
CIA: 2; 
PAI: 2; 
CIA: 3; 
CIA: 4; 
DPIA: 1; 
CIA: 5; 
CIA: 6; 
PAI: 3; 
CIA: 7; 
CAI: 8; 
PAI: 4; 
CIA: 9; 
CIA: 10; 
DPIA: 2; 
CIA: 11; 
CIA: 12; 
PIA: 5; 
CIA: 13; 
CAI: 14; 
PIA: 6; 
CIA: 15; 
CIA: 16. 

Midpoint of aircraft carrier service life: RCOH (duration 39 months). 

Second half of aircraft carrier service life: 23.5 years: 
CIA: 17; 
CIA: 18; 
PIA: 7; 
CIA: 19; 
CIA: 20; 
PIA: 8; 
CIA: 21; 
CIA: 22; 
DPIA: 3; 
CIA: 23; 
CIA: 24; 
PIA: 9; 
CIA: 25; 
CIA: 26; 
PIA: 10; 
CIA: 27; 
CIA: 28; 
DPIA: 4; 
CIA: 29; 
CIA: 30; 
PAI: 11; 
CIA: 31; 
CIA: 32; 
PAI: 12. 

Depot-level availability: 

PIA: Planned Incremental Availability (Duration 6 months, 269,000 work 
days). 

CIA: Carrier Incremental Availability (Duration 1 month, 10,000 work 
days). 

DPIA: Docking Planned Incremental Availability (Duration 10.5 months, 
444,000 work days). 

RCOH: Refueling Complex Overhaul (Duration 39 months, 3,267,000 work 
days). 

Source: GAO analysis of Navy's nuclear-powered carrier maintenance 
planning documents. 

Note: The number below each depot-level availability type indicates 
the particular sequential availability perforated of that type during 
the service life of the carrier. 

[End of figure] 

The Navy's maintenance policy for ships indicates that scheduled 
private sector carrier and planned incremental availabilities shall 
normally be performed in the ship's home-port area.[Footnote 15] 
However, as Naval Station Mayport does not have dry docking capability 
for nuclear-powered aircraft carriers, a carrier homeported there 
would have to travel to Norfolk Naval Shipyard or Northrop Grumman 
Shipbuilding Newport News to undergo docking planned incremental 
availabilities and the one-time mid-life refueling complex overhaul, 
respectively. 

Nonpropulsion Plant Maintenance and Propulsion Plant Maintenance: 

The maintenance work conducted during these depot-level availabilities 
is separated between nonpropulsion plant work and propulsion plant 
work. Nonpropulsion plant work consists of maintenance work on systems 
outside of the propulsion plant, or nuclear reactors and related 
systems, of an aircraft carrier. This type of work--sometimes called 
"topside work"--is almost entirely performed by the private sector. 
Types of nonpropulsion plant work performed by the private sector 
include: 

* flight deck and hangar deck resurfacing; 

* cabin repairs and upgrades--including deck resurfacing, restroom 
repairs and upgrades, and berthing compartment repairs and upgrades; 

* aircraft and weapons elevators repairs and upgrades; 

* hull and structural corrosion control, preservation, and repairs; 

* steam system repairs and modifications--including piping repair and 
replacement, and valve repair and replacement; 

* electrical distribution system repairs and modifications--including 
circuit breakers and generators; and: 

* ventilation system cleaning, preservation, corrosion control, and 
repairs to ducting, valves, and motors. 

Propulsion plant work, on the other hand, consists of maintenance and 
repairs related to the carrier's nuclear reactors and associated 
systems that are largely performed in a controlled environment. This 
type of work is primarily performed by public shipyard personnel. 
Public shipyard personnel can also perform the nonpropulsion plant 
work performed by the private sector if needed. In order to support 
the required propulsion plant work, additional facilities will need to 
be constructed at Naval Station Mayport, including a controlled 
industrial facility that is used for the inspection, modification, and 
repair of radiologically controlled equipment and components. During 
the carrier and planned incremental availabilities, public shipyard 
personnel (most likely from Norfolk Naval Shipyard) will travel to 
Naval Station Mayport to perform the propulsion plant-related work. 
The propulsion plant maintenance strategy for Mayport is based on the 
model that has been used for nuclear carriers homeported at North 
Island Naval Air Station, San Diego, where public shipyard personnel 
(normally from Puget Sound Naval Shipyard) travel to North Island to 
perform this work during carrier and planned incremental 
availabilities. 

Private Ship Repair Firms in Northeast Florida Will Likely Be Able to 
Support the Maintenance Requirements of a Nuclear Aircraft Carrier: 

Private ship repair firms in northeast Florida will likely be able to 
support the maintenance requirements of a nuclear aircraft carrier if 
one is homeported at Naval Station Mayport in 2019 as the Navy plans. 
Of the 20 surface ships currently homeported at Mayport, the Navy 
plans to decommission 12 guided-missile frigates between 2011 and 
2015. The Navy estimates that these decommissionings could reduce the 
total maintenance workload by about 60 percent if no other work is 
allocated to Mayport and, as a result, has implemented some mitigation 
measures to help offset the decreased workload and is considering 
others. Additionally, the Navy expects the proposed homeporting of a 
nuclear aircraft carrier at Mayport in 2019 to further increase the 
workload at Mayport by an average of 28,800 work days per year. In the 
near term, although the decreased workload from the frigates' 
retirements may result in the loss of some ship repair jobs, the 
decrease is not expected to affect the ship repair firms' ability to 
support a carrier. All of the firms have demonstrated the capability 
and capacity to work on naval ships, including performing large-scoped 
conventional aircraft carrier availabilities and have options 
available to increase capacity during workload surges, such as 
utilizing temporary workers and overtime for full-time workers. 
Additionally, private ship repair officials told us that although they 
are concerned over the projected decrease in workload, workload 
fluctuations are common in the ship repair industry and their firms 
would be able to withstand any lulls in workload at Mayport, and that 
any workload decreases would not impact their ability to support a 
nuclear carrier at Mayport. 

Decommissioning of Guided-Missile Frigates Will Reduce Maintenance 
Workload at Mayport, but Navy Has Implemented Mitigation Measures and 
Is Considering Others: 

The planned decommissioning of the guided-missile frigates currently 
at Mayport will reduce the total maintenance workload at Mayport, but 
the Navy has implemented several mitigation measures and is actively 
exploring others. Of the 20 surface ships currently homeported at 
Mayport, the Navy plans to decommission 12 guided-missile frigates 
between 2011 and 2015. According to the Navy, the total depot 
maintenance workload at Mayport has averaged 225,000 work days per 
year over the past several years. The Navy estimates that the 
decommissioning of the frigates will reduce the total annual workload 
by about 135,200 work days after all the frigates have been 
decommissioned in 2015--a potential decrease of 60 percent if no other 
maintenance work is allocated to Mayport. Table 1 shows the planned 
decommissioning schedule for the guided-missile frigates at Naval 
Station Mayport. 

Table 1: Navy's Schedule for Decommissioning Guided-Missile Frigates 
Homeported at Naval Station Mayport, as of December 2010: 

Hull number: FFG 39; 
Ship name: USS Doyle; 
Fiscal year to be decommissioned: 2011. 

Hull number: FFG 28; 
Ship name: USS Boone; 
Fiscal year to be decommissioned: 2012. 

Hull number: FFG 29; 
Ship name: USS Stephen W. Groves; 
Fiscal year to be decommissioned: 2012. 

Hull number: FFG 32; 
Ship name: USS John L. Hall; 
Fiscal year to be decommissioned: 2012. 

Hull number: FFG 36; 
Ship name: USS Underwood; 
Fiscal year to be decommissioned: 2013. 

Hull number: FFG 42; 
Ship name: USS Klakring; 
Fiscal year to be decommissioned: 2013. 

Hull number: FFG 40; 
Ship name: USS Halyburton; 
Fiscal year to be decommissioned: 2014. 

Hull number: FFG 45; 
Ship name: USS De Wert; 
Fiscal year to be decommissioned: 2014. 

Hull number: FFG 49; 
Ship name: USS Robert G. Bradley; 
Fiscal year to be decommissioned: 2014. 

Hull number: FFG 50; 
Ship name: USS Taylor; 
Fiscal year to be decommissioned: 2015. 

Hull number: FFG 56; 
Ship name: USS Simpson; 
Fiscal year to be decommissioned: 2015. 

Hull number: FFG 58; 
Ship name: USS Samuel B. Roberts; 
Fiscal year to be decommissioned: 2015. 

Source: Navy. 

[End of table] 

In response to the potential workload reductions, the Navy has 
implemented some mitigation measures that will help offset the 
decreased workload in the near term and is exploring other options. 
For example, according to Navy officials, the Navy has made changes to 
the scope of maintenance work for cruisers and destroyers homeported 
at Mayport to allocate more work to the private sector. Additionally, 
the Navy has reallocated some of the maintenance work slated to be 
performed by sailors at Mayport to the private sector. The Navy also 
has transferred the maintenance work for three living barges--which 
are used as living quarters by ship personnel while they are 
conducting maintenance--from Norfolk Naval Shipyard to Mayport. 
According to the Navy, these measures will not fully offset the 
workload lost from the decommissioning of the frigates, but will 
provide some workload stability through 2016. Additionally, the Navy 
is considering other near-term options, such as the foreign military 
sale of the 12 frigates scheduled to be decommissioned at Mayport 
between 2011 and 2015. Navy officials told us that the sale of 
frigates through the Foreign Military Sales program could add a 
significant level of workload for the private ship repair firms when 
the ships are refurbished and outfitted to the foreign government's 
specifications. The private sector workload could remain relatively 
constant through fiscal year 2016 if all the frigate refurbishments 
occur in northeast Florida, according to the Navy. 

Although the foreign military sale of the frigates would help address 
the decreased workload through fiscal year 2016, there is still 
uncertainty about the workload after 2016. As a result, the Navy is 
also considering longer-term solutions, such as homeporting some of 
the littoral combat ships at Mayport. Currently, no specific ships 
have been identified and no timeline for delivery has been determined, 
but the Navy is considering homeporting some of the ships at Mayport 
beginning in fiscal year 2016. Although the maintenance workload 
associated with these ships is still under development, the Navy has 
stated that it would need to homeport 12 littoral combat ships to 
fully mitigate the workload lost from the frigates. Additionally, the 
homeporting of a carrier at Mayport in 2019 would further address the 
decreased workload, as the Navy estimates that the homeporting would 
increase the workload at Mayport by an average of 28,800 work days per 
year. 

Northeast Florida Area Includes Three Master Ship Repair Firms with 
Demonstrated Capabilities and Capacity to Provide Carrier Maintenance: 

The northeast Florida area is home to three master repair firms 
certified by the Navy to have the capabilities and capacities to 
support the maintenance requirements of U.S. Navy surface ships, 
including aircraft carriers. The Navy grants the master ship repair 
certification following an evaluation of a ship repair firm's 
capability and capacity to perform all aspects of shipboard work and 
is the highest level of certification by the Navy to perform ship 
repair work. To obtain this level of certification, the firm must meet 
certain criteria, including: 

* have the management, organization, production, and facilities 
capabilities to perform an entire complex repair and alteration 
package on a frigate guided-missile class selected restricted 
availability[Footnote 16] or larger ship; 

* perform 55 percent of the availability using the firm's own 
facilities and its own workforce; and: 

* possess or have committed access to a pier with the requisite 
support and technical services available to accommodate a guided-
missile class frigate.[Footnote 17] 

BAE Systems Southeast Shipyards Jacksonville, Earl Industries, and 
North Florida Shipyards, Inc., have this certification in the 
northeast Florida area. This is comparable to the number of certified 
master ship repair firms located in the Puget Sound, Washington and 
San Diego, California areas, where nuclear aircraft carriers are also 
homeported. Figure 2 shows the locations of firms the Navy identified 
as certified master ship repair firms at Navy home ports in Puget 
Sound, Washington; San Diego, California; Norfolk, Virginia; and 
Mayport, Florida. 

Figure 2: Master Ship Repair Firms at Selected Navy Home Ports: 

[Refer to PDF for image: illustrated U.S. map] 

Puget Sound: 
*	Todd Pacific Shipyards; 
*	Cascade General, Inc. 
*	Pacific Ship Repair and	Fabrication, Inc. 

Norfolk: 
* Northrop Grumman Shipbuilding, Newport News; 
* Metro Machine; 
* Colanna's Shipyard, Inc. 
* Tecnico Corporation; 
* BAE Systems, Norfolk Ship Repair; 
* Earl Industries; 
* MHI Ship Repair and Services. 

Mayport: 
* BAE Systems, Southeast Shipyards Jacksonville; 
* Earl Industries; 
* North Florida Shipyards, Inc. 
				
San Diego: 
* NASSCO/General Dynamics Corporation; 
* BAE Systems, San Diego Ship Repair; 
* Northrop Grumman Continental Maritime; 
* Pacific Ship Repair and Fabrication, Inc. 

Source: Navy. 

[End of figure] 

All three of the master ship repair firms have significant production 
and administrative facilities either on or near Naval Station Mayport. 
[Footnote 18] In addition, officials from these firms told us that 
their firms have sufficient facility resources and personnel 
capabilities to support a nuclear aircraft carrier and that their 
firms have options by which they can adjust to decreases in workload 
or increase capacity during workload surges. For example, both BAE 
Systems and Earl Industries have personnel at other locations that 
could be brought to Mayport to support increased workload or Mayport 
personnel could be transferred to these other locations if there is a 
decrease in the workload at Mayport. In addition, these firms can use 
overtime to help meet maintenance requirements during workload peaks 
and can hire additional employees or issue contracts for temporary 
labor to meet maintenance surges. For example, private ship repair 
officials told us that there is a robust temporary ship repair 
workforce that can be used by all private ship repair firms to 
supplement their full-time workforce when needed. Because of these 
options, private ship repair officials told us that although they are 
concerned over the projected decrease in workload, workload 
fluctuations are common in the ship repair industry and their firms 
would be able to withstand any lulls in workload and that any workload 
fluctuations would not impact their ability to support a carrier if 
one is homeported at Mayport. Enclosure II includes further discussion 
of the capabilities and capacity of each of the three-master ship 
repair firms in northeast Florida. 

Work Performed by Private Ship Repair Firms to Support a Nuclear- 
Powered Aircraft Carrier Is the Same as That Performed on Other Types 
of Ships: 

The ship repair tasks required of the northeast Florida private ship 
repair firms to support a nuclear-powered aircraft carrier are the 
same as those tasks performed on conventional carriers in the past and 
other types of ships. For example, the work performed by northeast 
Florida ship repair firms on nonnuclear surface ships would be 
consistent with similar hull, structural, preservation, and other 
nonpropulsion work that would be performed on a nuclear aircraft 
carrier. Thus, the type of work that the private sector is performing 
now on the cruisers, destroyers, and frigates currently stationed at 
Mayport will be the same type of work they would perform on a nuclear-
powered carrier if one were homeported there. Specifically, the depot-
level maintenance work conducted on nuclear-powered carriers is 
separated between propulsion plant and nonpropulsion plant work. 
Propulsion plant work includes maintenance activities related to the 
carrier's nuclear reactors and related systems and is almost entirely 
performed by the public shipyard personnel. The private sector 
performs a majority of the nonpropulsion plant work which includes 
such tasks as tank cleaning and repairs, preservation and painting of 
the hull, flight deck gear maintenance and repair, and steel 
structural repairs--basic tasks the private sector performs regardless 
of the type of ship. 

Private Ship Repair Firms in Northeast Florida Have Supported Aircraft 
Carriers in the Past: 

The various ship repair firms in northeast Florida have demonstrated 
the ability to support the maintenance requirements of multiple types 
of ships in the past, including performing all of the workload on 
conventional aircraft carrier availabilities. Until 2007, Naval 
Station Mayport was the home port to at least one conventional 
aircraft carrier and multiple types of other surface ships. Private 
ship repair officials told us that during this time their firms were 
able to provide all the necessary maintenance capabilities and 
capacity to support these ships. In fact, according to the Navy, the 
largest aircraft carrier availability ever performed outside of a 
public shipyard was completed on the USS John F. Kennedy in Mayport in 
2003 and included more than 360,000 work days completed by the private 
sector. According to our analysis, this is about five times the amount 
of work that will be completed by private ship repair firms on a 
nuclear carrier at Mayport during a planned incremental availability. 
According to the Navy's 2010 Mayport ship maintenance industrial base 
report, the Navy estimates that if a nuclear carrier is homeported at 
Mayport, private ship repair firms will be required to complete an 
average of approximately 28,800 work days of ship repair work per 
year. This is considerably less than the average annual work days 
performed by the private sector on the USS John F. Kennedy during 
fiscal years 1998 through 2007, when the private sector performed 
almost all of the conventional carrier repair work, as shown by table 
2. 

Table 2: Historical Workload on USS John F. Kennedy, Fiscal Years 1998-
2007: 

Fiscal year: 1998; 
Total work days: 69,226. 

Fiscal year: 1999; 
Total work days: 53,077. 

Fiscal year: 2000; 
Total work days: 94,759. 

Fiscal year: 2001; 
Total work days: 30,762. 

Fiscal year: 2002; 
Total work days: 30,077. 

Fiscal year: 2003; 
Total work days: 366,083. 

Fiscal year: 2004; 
Total work days: 21,290. 

Fiscal year: 2005; 
Total work days: 11,607. 

Fiscal year: 2006; 
Total work days: 2,442. 

Fiscal year: 2007; 
Total work days: 28,164. 

Average work days per year: 70,749. 

Source: Navy. 

Notes: The large decrease in total work days starting in 2005 
represents the fact that the Navy started to defer maintenance on the 
USS John F. Kennedy as it was slated to be decommissioned. The work 
days for 2007 represents work days performed through May 31, 2007. 

[End of table] 

Navy Designed Its Contracting Strategy to Help Firms Plan for and 
Conduct Ship Repair Work: 

According to Navy officials, the Navy designed its contracting 
strategy for nuclear aircraft carrier maintenance to help private ship 
repair firms plan for decreases and increases in workload. Navy 
officials stated that at each home port, the Navy awards a multiyear, 
multiship, multioption contract to a prime contractor to perform the 
maintenance on all the ships of a particular class. For example, 
according to the Navy, Earl Industries is currently responsible for 
performing with its own workforce and subcontracting with other firms 
the private-sector maintenance for all the carriers in Norfolk, 
Virginia. The Navy asserts that this type of contracting strategy: 

* establishes a long-term relationship between the Navy and prime 
contractor; 

* provides the prime contractor early visibility into the Navy's 
carrier maintenance planning, thus allowing the contractor to 
appropriately size its workforce in anticipation of future workload; 

* facilitates the scheduling of work, resulting in contractor 
efficiencies and cost savings; 

* reduces the time spent on contracting private sector work; 

* provides a quick response to emergent work; and: 

* provides an easy contracting vehicle for ship repair firms to 
perform deferred maintenance every time ships are in home port, 
regardless of the duration of their visit. 

Moreover, according to Navy officials, within its multiyear, 
multiship, multioption contracts, the Navy promotes partnerships 
between the prime contractor and other ship repair firms actually 
performing the scheduled maintenance work through teaming agreements. 
According to industry representatives, teaming agreements are used by 
the prime contractor to share work with other ship repair firms in 
northeast Florida. Generally, teaming agreements include arrangements 
in which a potential prime contractor agrees with other companies to 
have them act as its subcontractors under a specified government 
contract. In addition, private ship repair officials told us the 
teaming agreement allows the prime contractor to easily draw upon the 
resources of subcontractors during increased workload periods and 
spreads the workload around to different firms to help maintain the 
capabilities of the all the ship repair firms. According to the Navy, 
this contracting strategy is currently used for private sector repairs 
on all nuclear aircraft carriers, and the Navy has indicated it plans 
to implement this strategy for the proposed carrier homeporting at 
Mayport, including the use of teaming agreements. 

The Navy's Report Generally Addressed the Provisions Directed in the 
House Report, but Additional Information Could Help to Clarify Its 
Responses: 

The Navy's December 2010 report on the northeast Florida private ship 
maintenance industrial base[Footnote 19] generally met the reporting 
direction, including the three provisions outlined in House Report 111-
491, which accompanied a proposed bill for the Fiscal Year 2011 
National Defense Authorization Act (H.R. 5136). The Navy, however, 
could have provided clearer and more complete responses in its report 
by including additional information that could help provide Congress 
with a better understanding of its conclusions regarding the 
sufficiency of the capabilities and capacities of ship repair firms 
near or around Naval Station Mayport to support the maintenance 
requirements of a nuclear-powered aircraft carrier. Table 3 provides 
our evaluation of the Navy's responses to the three provisions listed 
in the House report as provided in its December 2010 report. 

Table 3: Our Evaluation of the Navy's December 2010 Report Responses 
to the Congressional Defense Committees on the Northeast Florida 
Private Ship Maintenance Industrial Base: 

House Report 111-491 provision: The ability of the private ship 
maintenance industrial base in northeast Florida to support nuclear-
powered aircraft carrier maintenance requirements; 
Navy's response and information that would help clarify the response: 
* The Navy's report discussed the capabilities of the various private 
ship repair firms in northeast Florida and listed some of the types of 
work that the firms can perform; 
* We found the report did not fully provide information on the: 
- maintenance requirements of a nuclear-powered aircraft carrier and 
how that maintenance work would be allocated to the private sector; 
- impact of the decreasing Navy ship workload on the private ship 
repair firms and whether this decrease would affect their ability to 
meet the maintenance requirements of a nuclear aircraft carrier; 
* Including such information on the carrier's maintenance requirements 
and the impact of the decreasing workload would have provided 
additional support for the Navy's conclusion regarding the sufficiency 
of the various northeast Florida firms to support a nuclear aircraft 
carrier. 

House Report 111-491 provision: The likely costs to the Navy that 
could result from establishing such maintenance capabilities within 
the local industrial base; 
Navy's response and information that would help clarify the response: 
* The Navy's report concluded that there would not be any additional 
costs to the Navy associated with adding maintenance capabilities 
within the private-sector ship repair industrial base to support a 
nuclear aircraft carrier as the various firms already have the 
required capabilities; 
* We found the Navy did not fully explain how it reached its 
conclusion. Specifically, the report did not explain the differences 
between propulsion plant and related systems and nonpropulsion plant 
maintenance work, and the Navy's use of public shipyard employees to 
accomplish the propulsion plant maintenance and private ship repair 
firms to accomplish nonpropulsion requirements, or the capabilities 
needed to accomplish those tasks; 
* Including the differences between propulsion plant and nonpropulsion 
plant maintenance and the Navy's strategy to accomplish this work 
would have further explained the Navy's conclusion that the private 
ship repair firms already have the capabilities to support the 
nonpropulsion maintenance requirements of a nuclear aircraft carrier 
and that there would not be any need for additional capabilities 
within the local industrial base. 

House Report 111-491 provision: The impacts on costs and workforce 
scheduling that could result if the Navy must provide the maintenance 
workforce from another nuclear-powered aircraft carrier home-port 
location; 
Navy's response and information that would help clarify the response: 
* The Navy's report discussed the maintenance workload associated with 
a nuclear aircraft carrier and the potential cost to the Navy if the 
public shipyards needed to perform 10 percent more of the work than 
anticipated, which would require these shipyards to send more workers 
to Mayport; 
* We found the report did not fully discuss the Navy's workforce-
shaping procedures and the One Shipyard concept, which helps ensure 
that the required number of workers and skill sets are available when 
needed to meet current and planned maintenance requirements. Under the 
Naval Sea Systems Command's One Shipyard concept, the naval shipyards 
adjust the overall ship repair workload and mobilize the workforce 
across the all naval and private shipyards as needed to meet the 
Navy's maintenance needs for its ships and help stabilize the workload; 
* This information would have provided the reader with better context 
to understand the Navy's potential workforce-scheduling strategies and 
any impacts that could result if the Navy must provide the maintenance 
workforce from another home-port location than Mayport. 

Source: GAO analysis. 

[End of table] 

While the responses in the northeast Florida industrial base report 
could be clearer and more complete, the additional information lacking 
in the report is available in two other recent Navy reports previously 
issued to Congress or the congressional defense committees--one on the 
assessment of the U.S. ship repair industrial base[Footnote 20], and 
the other on homeporting alternatives for Mayport.[Footnote 21] 
Additionally, this report and other reports we have recently issued on 
the Mayport carrier homeporting proposal also provide complementary 
information on nuclear carrier maintenance, homeporting costs, and 
other related areas not fully addressed in the Navy's report.[Footnote 
22] First, a 2007 Navy report to Congress on the assessment of the 
U.S. ship repair industrial base provides a discussion of the 
maintenance requirements of a nuclear-powered aircraft carrier and how 
that work is distributed to the private sector. Second, a 2010 Navy 
report to the congressional defense committees on homeporting 
alternatives for Mayport, issued at the same time as the northeast 
Florida private ship maintenance industrial base report , discusses 
the possible impacts of the expected decreasing workload at Naval 
Station Mayport on the northeast Florida private ship repair firms. 
Third, we provide a discussion of the differences between propulsion 
plant and related systems and nonpropulsion plant maintenance work and 
the related workforces in this report, as well as a recent report we 
issued on the nuclear carrier workforce plans for the Mayport carrier. 
[Footnote 23] And lastly, the Navy's 2007 report and its current 
shipyard business plan that was provided to members of Congress in May 
2010[Footnote 24] provide information on the Navy's workforce-shaping 
procedures and the One Shipyard concept. 

We are not making any recommendations in this correspondence. After 
reviewing a draft of this product, DOD officials said that the 
department had no comments. 

We are sending copies of this correspondence to the congressional 
defense committees. We are also sending copies to the Secretary of 
Defense; Secretary of the Navy; and Director, Office of Management and 
Budget. This correspondence will also be available at no charge on our 
Web site at [hyperlink, http://www.gao.gov]. 

Should you or your staffs have any questions concerning this 
correspondence, please contact me at (202) 512-4523 or 
leporeb@gao.gov. Contact points for our Offices of Congressional 
Relations and Public Affairs may be found on the last page of this 
correspondence. Key contributors to this correspondence are listed in 
enclosure III. 

Signed by: 

Brian J. Lepore:
Director, Defense Capabilities and Management: 

Enclosures - 3: 

[End of section] 

List of Committees: 

The Honorable Carl Levin: 
Chairman: 
The Honorable John McCain: 
Ranking Member: 
Committee on Armed Services: 
United States Senate: 

The Honorable Daniel K. Inouye: 
Chairman: 
The Honorable Thad Cochran: 
Ranking Member: 
Subcommittee on Defense: 
Committee on Appropriations: 
United States Senate: 

The Honorable Howard P. McKeon: 
Chairman: 
The Honorable Adam Smith: 
Ranking Member: 
Committee on Armed Services: 
House of Representatives: 

The Honorable C.W. Bill Young: 
Chairman: 
The Honorable Norman D. Dicks: 
Ranking Member: 
Subcommittee on Defense: 
Committee on Appropriations: 
House of Representatives: 

[End of section] 

Enclosure I: Summary of GAO's Independent Cost Estimate to Homeport a 
Nuclear Carrier at Naval Station Mayport: 

Our independent cost estimate of establishing a nuclear-powered 
aircraft carrier home port at Mayport suggests that over a 10-year 
budget window, recurring costs are expected to total between $90 
million and $176 million ($9.0 million and $17.6 million per year), in 
base year 2010 dollars. For nonrecurring or one-time costs, our 
independent estimate suggests that the total one-time cost of 
homeporting a nuclear-powered aircraft carrier at Naval Station 
Mayport is expected to be between $258.7 million and $356.0 million, 
in base year 2010 dollars. Table 4 shows our estimated range for 
recurring costs for each cost element in our independent estimate. 
Specifically, the table shows our estimate range at an 80 percent 
confidence interval. The low value of the estimated range represents a 
10 percent chance that the cost will be that amount or less, and the 
high value of the estimated range represents a 90 percent chance that 
the cost will be that amount or less. 

Table 4: GAO Estimated Range of Recurring Costs (in Base-Year 2010 
Dollars): 

Cost element: Permanently assigned labor for nuclear facilities; 
GAO's estimated low cost: $0.7 million; 
GAO's estimated high cost: $1.9 million. 

Cost element: Base operating support; 
GAO's estimated low cost: $0.7 million; 
GAO's estimated high cost: $1.4 million. 

Cost element: Facilities sustainment; 
GAO's estimated low cost: $0.7 million; 
GAO's estimated high cost: $1.2 million. 

Cost element: Facilities restoration and modernization; 
GAO's estimated low cost: $2.2 million; 
GAO's estimated high cost: $3.3 million. 

Cost element: Operations; 
GAO's estimated low cost: $0.5 million; 
GAO's estimated high cost: $1.4 million. 

Cost element: Travel/per diem for public shipyard workers; 
GAO's estimated low cost: $4.8 million; 
GAO's estimated high cost: $12.2 million. 

Cost element: Biennial maintenance dredging; 
GAO's estimated low cost: $0.1 million; 
GAO's estimated high cost: $0.2 million. 

Cost element: Basic allowance for housing differential; 
GAO's estimated low cost: -$5.5 million; 
GAO's estimated high cost: -$4.4 million. 

Cost element: Utilities; 
GAO's estimated low cost: $0.6 million; 
GAO's estimated high cost: $1.8 million. 

Cost element: Permanent change of station; 
GAO's estimated low cost: $1.0 million; 
GAO's estimated high cost: $1.3 million. 

Cost element: Private sector travel; 
GAO's estimated low cost: $0.1 million; 
GAO's estimated high cost: $1.2 million. 

Source: GAO analysis. 

Notes: Base-year 2010 dollars have the effects of inflation removed. 
The low cost estimate is at the 10 percent confidence level and the 
high cost estimate is at the 90 percent confidence level. It is not 
statistically appropriate to add each of the individual confidence 
intervals to come up with an overall confidence interval. The range 
and estimate for the basic allowance for housing is negative because 
the housing allowance is less in the Jacksonville, Florida, 
metropolitan area than it is in Norfolk, Virginia. This means that the 
Navy saves money for this cost element. 

[End of table] 

Table 5 shows a comparison between our estimated range for each cost 
element in our independent estimate for one-time costs. Specifically, 
the table shows our estimated range at an 80 percent confidence 
interval. The low value of the estimate range represents a 10 percent 
chance that the cost will be that amount or less, and the high value 
of the estimated range represents a 90 percent chance that the cost 
will be that amount or less. For more information, see our recently 
issued report that provides our independent estimate of the full life-
cycle costs associated with the Navy's planned homeporting of a 
nuclear-powered aircraft carrier at Mayport.[Footnote 25] 

Table 5: GAO Estimated Range of One-Time Costs (in Base Year 2010 
dollars): 

Cost element: Planning and design; 
GAO's estimated low cost: $15.0 million; 
GAO's estimated high cost: $22.9 million. 

Cost element: Dredging; 
GAO's estimated low cost: $31.3 million; 
GAO's estimated high cost: $33.1 million. 

Cost element: Construction: Parking garage; 
GAO's estimated low cost: $21.9 million; 
GAO's estimated high cost: $53.3 million. 

Cost element: Construction: Road improvements; 
GAO's estimated low cost: $9.5 million; 
GAO's estimated high cost: $24.3 million. 

Cost element: Construction: Wharf F improvements; 
GAO's estimated low cost: $28.3 million; 
GAO's estimated high cost: $75.3 million. 

Cost element: Construction: Controlled industrial facility; 
GAO's estimated low cost: $35.2 million; 
GAO's estimated high cost: $94.9 million. 

Cost element: Construction: Ship maintenance support facilities; 
GAO's estimated low cost: $23.0 million; 
GAO's estimated high cost: $59.3 million. 

Cost element: Initial equipment outfitting; 
GAO's estimated low cost: $24.5 million; 
GAO's estimated high cost: $64.4 million. 

Cost element: Permanent change of station for crew; 
GAO's estimated low cost: $4.7 million; 
GAO's estimated high cost: $6.0 million. 

Source: GAO Analysis. 

Notes: The low cost estimate is at the 10 percent confidence level and 
the high cost estimate is at the 90 percent confidence level. It is 
not statistically appropriate to add each of the individual confidence 
intervals to come up with an overall confidence interval. In addition 
to the road improvements on Naval Station Mayport, information 
provided by a Department of Transportation official indicates that the 
Jacksonville Transportation Authority, based on its study of traffic 
improvements to the intersection approaching the main gate outside of 
the naval station, has identified up to $8 million in improvements 
that are unfunded at this time. The official indicated that these 
improvements are potentially eligible for federal-aid funds. 

[End of table] 

[End of section] 

Enclosure II: Capabilities and Capacity of the Master Ship Repair 
Firms in Northeast Florida: 

The northeast Florida area has three master ship repair firms--BAE 
Systems Southeast Shipyards Jacksonville, Earl Industries, and North 
Florida Shipyards, Inc.--certified by the Navy as having the 
capabilities and capacity required to perform nonnuclear maintenance 
and modernization on all Navy ships. The following is a description of 
the capabilities and capacity of these master ship repair firms. 

BAE Systems Southeast Shipyards Jacksonville: 

BAE Systems is the largest of the three master ship repair firms in 
northeast Florida. It has modern ship repair facilities located 
adjacent to Wharf F (where the proposed nuclear aircraft carrier will 
be docked during an availability) at Naval Station Mayport. These 
facilities are fully dedicated to supporting Navy vessels. BAE Systems 
also maintains an administrative facility at Naval Station Mayport to 
execute support functions such as solicitation, execution planning, 
and program management. The facilities at Naval Station Mayport 
include the following trade shops: 

* pipe shop, 

* welding shop, 

* electric shop, 

* rigging shop, 

* paint shop, 

* pump shop, 

* sheet metal shop, 

* insulation and lagging shop, and: 

* warehouse. 

In addition to the facilities located at Naval Station Mayport, BAE 
Systems also has substantial capabilities at its private Jacksonville 
shipyard. The Jacksonville shipyard is just across the St. John's 
River from Naval Station Mayport, less than 5 miles by car. The 
facility performs both Navy and commercial work. Three Naval Sea 
Systems Command certified dry docks are located at this facility, 
including a 4,000-ton marine railway and a 13,500-ton dry dock capable 
of docking cruiser and destroyer class ships. The Jacksonville 
shipyard facilities and equipment are available to Naval Station 
Mayport if needed. BAE Systems employs approximately 800 full-time 
ship repair personnel at its Naval Station Mayport and Jacksonville 
repair facilities combined. Additionally, it employs approximately 
1,300 full-time personnel in the Norfolk area who could potentially be 
used to augment its personnel in northeast Florida, if needed. 

Earl Industries: 

Earl Industries' facilities at Naval Station Mayport were designed 
specifically to support Navy ship repair. The 2-acre compound occupied 
by Earl Industries, adjacent to Wharf F, includes a fully equipped 
machine shop, structural shop, electrical clean room, sheet metal 
shop, and pipe shop. Additionally, a fully equipped 30,000-square foot 
production building constructed in fiscal year 2007 is located 500 
yards from the piers. According to Earl Industries' executives, this 
facility was designed to support aircraft carrier maintenance 
requirements; however, according to Earl officials, since the 
decommissioning of the USS John F. Kennedy in 2007, the building has 
not been utilized to its full capabilities. Earl Industries also 
maintains mobile, containerized tool rooms and shop facilities that 
are readily transportable to the wharf job site. Earl Industries also 
has a long-term lease on a 10,000-square foot warehouse and 2 more 
acres of temporary storage area a half of a mile outside the Naval 
Station's main gate. Earl Industries employs approximately 120 full-
time ship repair personnel at its Naval Station Mayport location. In 
addition, it employs approximately 571 personnel in the Norfolk area, 
who could potentially be used to augment its personnel in northeast 
Florida, if needed. 

North Florida Shipyards, Inc. 

North Florida Shipyards has a 60,000-square foot facility located on 
2.5 acres adjacent to Wharf F on Naval Station Mayport. This facility 
houses a fabrication shop, pipe shop, machine shop, electric shop, 
crane and rigging shop, paint shop, and material storage warehouse. In 
addition to the Mayport facility, North Florida Shipyards also has a 
commercial facility located at Commodore Point in Jacksonville, 
Florida. This facility has additional capabilities and equipment that 
are available to support Navy work being performed at Naval Station 
Mayport if needed. North Florida Shipyards employs approximately 235 
full-time ship repair personnel at its Naval Station Mayport and 
Jacksonville locations combined. It does not have any personnel in the 
Norfolk area. 

[End of section] 

Enclosure III: GAO Contact and Staff Acknowledgments: 

GAO Contact: 

Brian J. Lepore, (202) 512-4523 or leporeb@gao.gov: 

Staff Acknowledgments: 

In addition to the contact named above, Mark J. Wielgoszynski, 
Assistant Director; Darnita Akers; Shawn Arbogast; Russell Bryan; Mary 
Jo LaCasse; Carol Petersen; Erik Wilkins-McKee; and Michael 
Shaughnessy made key contributions to this report. 

[End of section] 

Footnotes: 

[1] Naval Station Mayport is located in northeast Florida, on the 
Atlantic Coast, near Jacksonville. It is roughly 469 nautical miles 
south-southwest of Norfolk. 

[2] In our report examining the military services' processes for 
making basing decisions for force structure within the United States, 
we provide information about the approach used by the Navy in making 
its decision to homeport a nuclear-powered carrier at Mayport, 
Florida. See GAO, Defense Infrastructure: Opportunities Exist to 
Improve the Navy's Basing Decision Process and DOD Oversight, 
[hyperlink, http://www.gao.gov/products/GAO-10-482] (Washington, D.C.: 
May 11, 2010). 

[3] For the purpose of this report we define the ship maintenance 
industrial base as the private ship repair firms, including the 
smaller firms and temporary labor with which they work, that support 
Navy ship repair, maintenance, and modernization requirements in 
northeast Florida. As such, throughout this report we use private ship 
repair firms when referring to the private ship maintenance industrial 
base, except when specifically referring to language in the committee 
report. 

[4] See H.R. Rep. No. 111-491, at 260-261 (2010). 

[5] Department of the Navy, Report to Congress on Northeast Florida 
Private Ship Maintenance Industrial Base (Washington, D.C.: Dec. 29, 
2010). 

[6] GAO, Defense Infrastructure: Navy Can Improve the Quality of Its 
Cost Estimate to Homeport an Aircraft Carrier at Naval Station 
Mayport, [hyperlink, http://www.gao.gov/products/GAO-11-309] 
(Washington, D.C.: Mar. 3, 2011). GAO-11-309 was developed in response 
to direction from the committee to submit a report containing an 
independent estimate of the total direct and indirect costs to be 
incurred by the federal government in homeporting a nuclear carrier at 
Mayport. See H.R. Rep. No. 111-491, at 507. 

[7] Although the Navy uses the industrial term manday when referring 
to aircraft carrier maintenance, for purposes of this report we use 
the term work day. Both refer to the industrial unit of production 
equal to the work one person can produce in a day. 

[8] Office of the Chief of Naval Operations Instruction 4700.7L, 
Maintenance Policy for United States Navy Ships (May 25, 2010); Office 
of the Chief of Naval Operations Notice 4700, Representative 
Intervals, Durations, and Repair Mandays for Depot Level Maintenance 
Availabilities of U.S. Navy Ships (Nov. 8, 2010); Naval Sea Systems 
Command, CVN 68 Class Aircraft Carrier Class Maintenance Plan 
(Revision 3, Dec. 2009). 

[9] The Navy's four public shipyards--Norfolk Naval Shipyard in 
Virginia, Pearl Harbor Naval Shipyard in Hawaii, Portsmouth Naval 
Shipyard in Maine, and Puget Sound Naval Shipyard in Washington-- 
provide the organic capability to perform ship repair maintenance and 
modernization, and complement the private sector's capability for 
conventional surface ship maintenance. 

[10] House Report 111-491 directed GAO to assess the potential 
readiness and cost impacts to the nuclear propulsion depot maintenance 
workforce. See H.R. Rep. No. 111-491, at 254. Our report on this 
subject was issued to congressional defense committees on March 3, 
2011 [hyperlink, http://www.gao.gov/products/GAO-11-275R]. 

[11] The littoral combat ship is a new class of warship meant to 
facilitate U.S. Navy access to and operations in the littorals, which 
are waters close to shore. The Navy plans to build a total of 55 
littoral combat ships. 

[12] Under the Naval Sea Systems Command's One Shipyard concept, the 
naval shipyards adjust the overall ship repair workload and mobilize 
the workforce across the all naval and private shipyards as needed to 
meet the Navy's maintenance needs for its ships and help stabilize the 
workload. 

[13] Office of the Chief of Naval Operations, Assessment of Ship 
Repair Industrial Base (Washington, D.C.: June 2007). This report 
provided information on private ship repair firms geographically 
located in port areas throughout the continental United States, in 
Hawaii, and in Guam that are certified capable to perform work on U.S. 
Navy ships. 

[14] Department of the Navy, Report to Congress on Naval Station 
Mayport, Florida, Homeporting Alternatives (Washington, D.C.: Dec. 28, 
2010). 

[15] Office of the Chief of Naval Operations Instruction 4700.7L, 
Maintenance Policy for United States Navy Ships. 

[16] Selected restricted availabilities are short labor-intensive 
maintenance availabilities, assigned to ships in certain maintenance 
programs with characteristics such as reduced manning, limited 
organizational-level maintenance, and operational tempos that limit 
ship's availability for regular depot-level maintenance periods, 
designed to sustain a high level of readiness and increase the ship's 
availability for required operations. 

[17] See Naval Sea Systems Command Instruction 4280.2C, Master 
Agreement for Repair and Alteration of Vessels; Master Ship Repair 
Agreement (MSRA) and Agreement for Boat Repair (ABR) (Nov. 27, 1996). 
See also Department of the Navy, Report to Congress on Northeast 
Florida Private Ship Maintenance Industrial Base (Washington, D.C.: 
Dec. 29, 2010). 

[18] Enclosure II includes further discussion of the capabilities and 
capacity of each of the master ship repair firms in northeast Florida. 

[19] For the purpose of this report we define the ship maintenance 
industrial base as the private ship repair firms, including the 
smaller firms and temporary labor with which they work, that support 
Navy ship repair, maintenance, and modernization requirements in 
northeast Florida. As such, throughout this report we use private ship 
repair firms when referring to the private ship maintenance industrial 
base, except when specifically referring to language in the committee 
report. 

[20] Office of the Chief of Naval Operations, Assessment of Ship 
Repair Industrial Base. This report provided information on private 
ship repair firms geographically located in port areas throughout the 
continental United States, in Hawaii, and in Guam that are certified 
capable to perform work on U.S. Navy ships 

[21] Department of the Navy, Report to Congress on Naval Station 
Mayport, Florida, Homeporting Alternatives. 

[22] GAO, Depot Maintenance: Navy Has Revised Its Estimated Workforce 
Cost for Basing an Aircraft Carrier at Mayport, Florida, [hyperlink, 
http://www.gao.gov/products/GAO-11-257R] (Washington, D.C.: Mar. 3, 
2011); [hyperlink, http://www.gao.gov/products/GAO-11-309]; and 
[hyperlink, http://www.gao.gov/products/GAO-10-482]. 

[23] [hyperlink, http://www.gao.gov/products/GAO-11-257R]. 

[24] Department of the Navy, 2010 Naval Shipyard Business Plan 
(Washington, D.C.: May 10, 2010). 

[25] GAO, Defense Infrastructure: Navy Can Improve the Quality of Its 
Cost Estimate to Homeport an Aircraft Carrier at Naval Station 
Mayport, [hyperlink, http://www.gao.gov/products/GAO-11-309] 
(Washington, D.C.: Mar. 3, 2011). 

[End of section] 

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