Improvements Needed in the Navy's Fleet Modernization Program

LCD-76-406: Published: Mar 15, 1976. Publicly Released: Mar 15, 1976.

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GAO reviewed the Navy's fleet modernization program to determine the: (1) adequacy of budgeting and funding; (2) extent that funded alterations were done; (3) the justifications for deferring alterations; (4) the degree that work was backlogged for unaccomplished alterations; (5) disposition of funds from unaccomplished or deferred alterations; (6) amount of visibility of alteration material; and (7) coordination of procured material with available installation funds.

The Navy does not have a configuration management system to show the completed and outstanding alterations for each ship. Consequently, it cannot readily determine the amount of alteration work outstanding. The Navy is unable to determine from its onhand inventory records which items were purchased for the fleet modernization program. Without complete information on on-hand inventories of alteration material, the Navy could not determine: (1) the status of its modernization program; (2) relative to outstanding alterations to be installed; (3) its impact on future procurements; and (4) whether to program the equipment for installation or use it for other programs. The Navy's computerized system is the database for planning and programming ship alterations, but it is not fully effective because: (1) customers using the system lack confidence in it; (2) 50 percent of the customers rely on other data systems that are mostly duplicative; (3) customers are not making concerted efforts to improve the system to make it work; and (4) full capability of the system is not used.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Secretary of the Navy should insure that the Navy: (1) purifies the database in the automated management information system and uses it; (2) develops and submits backup data which would relate the planned installation costs to the annual procurement requests; (3) establishes controls over the inventory on hand and relates the inventory to alterations to be installed, thereby forming a basis for future alteration scheduling and for additional procurements; and (4) uses more fully the alteration capability and capacity that exists below the shipyard level.

    Agency Affected:


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