Recommendation: The Secretary of the Navy should ensure that the Naval Sea Systems Command fully analyzes the use of overtime among shipyard production shops, and updates workforce requirements to avoid the consistent use of overtime to meet planned maintenance requirements. (Recommendation 1)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that the Naval Sea Systems Command identify a timeframe for completing the development of metrics for its Shipyard Performance to Plan initiative and complete the development of metrics to address the main factors contributing to maintenance delays and improve the timely completion of ship maintenance at Navy shipyards. (Recommendation 2)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that the Naval Sea Systems Command develop and implements goals, action plans, milestones, and a monitoring process for its Shipyard Performance to Plan initiative to address the main factors contributing to maintenance delays and improving the timely completion of ship maintenance at Navy shipyards. (Recommendation 3)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of Defense should change its definition for setting operational availability for ships in its Joint Capabilities Integration and Development System policy by adding information that defines the operational availability requirement by mission area in addition to the ship level and includes all equipment failures that affect the ability of a ship to perform primary missions. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: DOD partially concurred with this recommendation stating that it would work with the Navy and Joint Staff to revisit requirements definitions for shipbuilding programs to better ensure that they are traceable to a ship's mission and can be used across ship development and fielding. As of June 2020, DOD officials told us that there are two upcoming opportunities to make changes to DOD Joint Capabilities Integration and Development System policy and that these recommendations will receive consideration during this process.

Recommendation: The Secretary of Defense should change its definition for setting materiel availability for ships in its Joint Capabilities Integration and Development System requirements policy to include all factors that could result in a ship being unavailable for operations, such as unplanned maintenance, unplanned losses, and training. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: DOD concurred with this recommendation stating that it will work with the Navy and the Joint Staff to revisit requirements definitions for shipbuilding programs to better ensure materiel availability requirements include all factors that could preclude a ship from operating. As of June 2020, DOD officials told us that there are two upcoming opportunities to make changes to DOD Joint Capabilities Integration and Development System policy and that these recommendations will receive consideration during this process.

Recommendation: The Secretary of the Navy should direct the ASN (RD&A) and the CNO, once DOD requirements setting policy is revised, to update existing operational availability requirements for ongoing shipbuilding programs. When revising these requirements, the Navy should set operational availability requirements that: (1) are based on failures that affect the ability of a ship to perform primary missions and (2) are set at the mission level instead of ship level. (Recommendation 3)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: DOD partially concurred with this recommendation stating that changes to the requirements setting policy will apply only to new shipbuilding programs. As of June 2020, DOD officials told us that there are two upcoming opportunities to make changes to DOD Joint Capabilities Integration and Development System policy and that these recommendations will receive consideration during this process. While important steps towards improving the requirements setting process, DOD officials did not state whether any policy changes would apply to current shipbuilding programs. As we discussed in our report, at least four ship classes have plans for a new flight, block, and/or major modification. DOD and the Navy may miss key opportunities to improve the Navy's sustainment requirements if it excludes existing programs that have established requirements but have yet to start design or construction.

Recommendation: The Secretary of the Navy should direct the ASN (RD&A) and the CNO, once DOD requirements setting policy is revised, to update the materiel availability requirements for ongoing shipbuilding programs. When developing or revising these requirements, the Navy should set materiel availability requirements that fully capture all factors that could preclude a ship from being ready when needed. (Recommendation 4)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: DOD partially concurred with this recommendation stating that changes to the requirements setting policy will apply to new shipbuilding programs. As of June 2020, DOD officials told us that there are two upcoming opportunities to make changes to DOD Joint Capabilities Integration and Development System policy and that these recommendations will receive consideration during this process.

Recommendation: The Secretary of the Navy should direct the ASN (RD&A) and the CNO, once the Navy revises its sustainment requirements, to ensure that shipbuilding programs report operational availability and materiel availability requirements in Selected Acquisition Reports, and alternatives to the Selected Acquisition Reports, for Congress. (Recommendation 5)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Navy concurred with this recommendation and will report operational and materiel availability in the Selected Acquisition Reports based on new definitions in DOD guidance. Therefore, we plan to close this recommendation once DOD updates its definitions and reports numbers in the SAR based on these new definitions.

Recommendation: The Secretary of the Navy should direct the Commander of Naval Sea Systems Command to ensure that cost estimators follow current guidance and GAO-identified best practices and conduct sensitivity analyses and other analyses to improve their assessment of cost risk in the O&S costs in shipbuilding programs' life-cycle cost estimates. (Recommendation 6)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Navy concurred with this recommendation stating that it agrees that the use of sensitivity, uncertainty, and risk analyses is a best practice to ensure credible, defensible life cycle cost estimates. However, the Navy has yet to issue any policy updates or provide any evidence that it is conducting sensitivity analyses and other analyses to improve their assessment of cost risk in the O&S costs in shipbuilding programs' life-cycle cost estimates.

Recommendation: The Secretary of the Navy should direct the ASN (RD&A) to ensure all shipbuilding programs develop and update LCSPs, in accordance with DOD policy, that demonstrate how a ship class can be affordably operated and maintained while meeting sustainment requirements, including associated business case analyses and identifying sustainment risk. (Recommendation 7)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Navy concurred with this recommendation and stated that it will ensure that all shipbuilding program develop and maintain accurate and complete life cycle sustainment plans. However, as we state in our report, the Navy did not have any accurate and completed life cycle sustainment plans and, as July 2020, has not updated any of these plans.

Recommendation: The Secretary of the Navy should direct the Commander of Naval Sea Systems Command to evaluate and implement changes to the ILA in order to position the ILA to effectively identify key sustainment risks and make recommendations for risk mitigation, which may include existing Navy proposals to change the ILA process. (Recommendation 8)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The department concurred with our recommendation and stated that the Navy will undertake a review and will approve any updated Independent Logistics Assessment (ILA) policy that emphasizes risk identification and mitigation in the ILA review. In July 2020, Navy officials stated that the Naval Sea Systems Command and the Secretary for Acquisition and Sustainment co-chaired a system-level ILA Working Group in 2020 to rewrite the Navy ILA Handbook to address key deficiencies in the current ILA process and to emphasize the use of a readiness at cost model. ILA Handbook and associated Secretary of Navy Instructions is currently in comment adjudication. In addition, Naval Sea Systems Command is developing an ILA database that provides stakeholders with visibility and insight into their respective programs' ILA-identified sustainment risks to closure. Once completed, Navy officials state that these items should implement the needed improvements to ILAs.

Recommendation: The Secretary of the Navy should direct the ASN (RD&A) and the CNO to ensure sustainment-related briefing topics prescribed by the Navy's acquisition policy are consistently discussed at Gate reviews. (Recommendation 9)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Navy concurred with this recommendation and stated that it has updated its Gate 6 sustainment sufficiency process and is executing a new Gate 7 sustainment review. In July 2020, Navy officials reported to us that the Chief of Naval Operations and the Assistant Secretary of the Navy for Acquisition will collaborate to ensure sustainment focus areas are properly emphasized at all Gate reviews. As our report states, focusing on sustainment at Gate 7 is likely insufficient to address many of the problems we found in the report. However, as of July 2020, the Navy has yet to provide us with evidence that demonstrate an increase in focus on sustainment during gate briefings or any of the new Gate 7 briefings.

Recommendation: The Secretary of the Navy should direct the ASN (RD&A) and the CNO to implement the sustainment program baseline initiative for shipbuilding programs and, in so doing, develop a mechanism that ensures that sustainment outcomes are a factor in shipbuilding programs' decision-making during the acquisition process. (Recommendation 10)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: The Navy concurred with this recommendation and Navy acquisition leadership officials stated that they will review the results of the demonstration programs for the Sustainment Program Baseline initiative and implement guidance for shipbuilding and all programs in subsequent guidance and policy concerning Sustainment Program Baselines. In updating its response to our recommendations in July 2020, the Navy is planning to implement the Sustainment Program Baseline as a pilot program for ships and submarines in fiscal year 2021.

Recommendation: The Secretary of the Navy should revise SECNAVINST 5000.2 and other associated guidance to ensure PSMs are assigned to shipbuilding program offices in time to inform early acquisition decisions, including development of the program's sustainment requirements and LCSPs. (Recommendation 11)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: the Navy concurred with this recommendation and stated that they will ensure that Product Support Managers (PSM) are assigned to acquisition programs ahead of Milestone A in compliance with existing DoD PSM policies. However, as of July 2020, the Navy did not state that it is planning to revise SECNAVINST 5000.2.

Recommendation: Congress should consider developing an oversight mechanism for evaluating shipbuilding programs' sustainment cost estimate growth during the acquisition process, with requirements for the Navy to: (1) report sustainment cost estimate growth information to Congress and (2) reassess shipbuilding programs that are experiencing a high level of sustainment cost estimate growth.

Agency: Congress
Status: Open

Comments: As of August 2020, there are several draft bills that would address this matter.

Recommendation: The Secretary of the Navy should assign responsibility to an entity to conduct a single, comprehensive systematic analysis of overseas surface ship maintenance delays. (Recommendation 1)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure the designated entity conducts a comprehensive, systematic analysis to identify the underlying, interrelated causes of overseas surface ship maintenance delays. (Recommendation 2)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should use the results of the analysis to develop a plan to address surface ship maintenance delays overseas. Such a plan should incorporate results-oriented elements, including analytically based goals, identification of risks to achieving those goals, identification of required resources and stakeholders, metrics to measure progress, and regular reporting on progress. (Recommendation 3)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Sea Systems Command assesses and mitigates risks posed by any challenges, such as persistent delays and capacity limitations, to successful implementation of its new maintenance approach in Japan. (Recommendation 4)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that Naval Sea Systems Command conducts analysis to include overseas maintenance requirements as part of its long-term maintenance plan to support the planned growth and readiness of the fleet. (Recommendation 5)

Agency: Department of Defense: Department of the Navy: Office of the Secretary
Status: Open

Comments: The Department of Defense concurred with this recommendation. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Under Secretary of Defense for Acquisition and Sustainment should ensure that the Deputy Assistant Secretary of Defense for Materiel Readiness create, share, and maintain a comprehensive and up-to-date list of all DOD sharing venues (i.e., working groups), including points of contact, related to depot maintenance. (Recommendation 1)

Agency: Department of Defense: Office of the Secretary of Defense: Office of the Under Secretary of Defense for Acquisition and Sustainment
Status: Open

Comments: DOD concurred with this recommendation. In response to our report, the Deputy Assistant Secretary of Defense for Materiel Readiness will create, share, and maintain a comprehensive and up-to-date list of all DOD sharing venues related to depot maintenance with associated points of contact. The estimated completion date is August 2020. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Army should ensure that Army Materiel Command reestablish and maintain organizations dedicated to sharing materiel best practices and lessons learned, as required by Army regulations. (Recommendation 2)

Agency: Department of Defense: Department of the Army: Office of the Secretary
Status: Open

Comments: DOD concurred with this recommendation. In response to our report, the Army is working to update policies to accurately reflect current activities for capturing, preserving, and distributing lessons learned and best practices throughout the organic industrial base. The estimated completion date is no later than December 2022. When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that the shipyard optimization program office (PMS 555) include all costs—such as costs for program office activities, utilities, roads, environmental remediation, historical preservation, and alternative workspace—when developing its second, more detailed, cost estimate. (Recommendation 1)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that the shipyard optimization program office (PMS 555) use cost estimating best practices—as outlined in the GAO Cost Estimating and Assessment Guide—in developing its second cost estimate, including a program baseline, work breakdown structure, a description of the methodology and key assumptions, inflation, fully addressing risk and uncertainty, and a sensitivity analysis. (Recommendation 2)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that the shipyard optimization program office (PMS 555) obtain an independent cost estimate of the Naval Shipyards program prior to the start of its project prioritization effort. (Recommendation 3)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of the Navy should ensure that the shipyard optimization program office (PMS 555), in coordination with relevant stakeholders, establish clear roles and responsibilities for the shipyards involved in the Shipyard Infrastructure Optimization Plan. (Recommendation 4)

Agency: Department of Defense: Department of the Navy
Status: Open

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: The Secretary of Defense should ensure that the Navy provides additional information in the annual President's budget exhibits associated with CVN 65 dismantlement and disposal to facilitate improved transparency and accountability. Additions should, at a minimum, include the CVN 65 funding estimate across the Future Years Defense Program, activities planned or performed for applicable fiscal years, tracking of total cost and high level changes in cost and schedule from the prior year with explanations for changes, and if applicable, contract type, awardee, award value, and award and completion date estimates. (Recommendation 1)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense agreed with this recommendation, stating that the Navy would develop and submit additional cost, schedule, and contract information to supplement existing budget exhibits and continue this reporting through completion of the CVN 65 dismantlement and disposal. Congress subsequently addressed our recommendation to the department as part of the Fiscal Year 2019 National Defense Authorization Act enacted on August 13, 2018. Specifically, the act requires the Secretary of the Navy to include information on each dismantlement and disposal of a nuclear-powered aircraft carrier occurring or planned to occur during the period of the future years defense program submitted to Congress with that budget. For each ship, this includes (1) a summary of activities and significant developments in connection with the dismantlement and disposal; (2) a detailed description of cost and schedule performance against the baseline for the dismantlement and disposal, including a description of and explanation for any variance from such baseline; and (3) a description of the funding amounts requested, or expected to be requested, for the dismantlement and disposal for prior, current, and future fiscal years. In August 2020, a Naval Reactors official stated that the draft environmental impact statement (EIS) for the carrier disposal will be published in the summer of 2021. The final EIS is planned for fall 2022 with an accompanying record of decision announcing the Navy's intended course of action for CVN 65 dismantlement and disposal. The official also confirmed that the Navy anticipates developing a schedule of work and requesting funding for CVN 65 dismantlement and disposal plans in 2023 if the commercial dismantlement option is selected. If the Navy elects to have the dismantlement performed by the government, these activities will occur at a later date. We will continue to monitor the Navy's activities in order to document any action taken to implement this recommendation.

Recommendation: The Secretary of Defense should require the Navy to obtain an independent cost estimate, performed by DOD's Office of Cost Analysis and Program Evaluation or the Naval Center for Cost Analysis, for both the naval shipyard and full commercial options before choosing a dismantlement and disposal approach for CVN 65. (Recommendation 2)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense agreed with this recommendation and stated that the Navy would obtain independent cost estimates through the Office of Cost Analysis and Program Evaluation (CAPE) for both the naval shipyard and full commercial CVN 65 dismantlement and disposal options before a final decision is made on which option the Navy will pursue. In August 2020, a Naval Reactors official stated that the draft environmental impact statement (EIS) for the carrier disposal will be published in the summer of 2021. The final EIS is planned for fall 2022 with an accompanying record of decision announcing the Navy's intended course of action for CVN 65 dismantlement and disposal. The official also said the Navy is working directly with the Center for Naval Analyses, Puget Sound Naval Shipyard, and CAPE to gather and review independent cost estimates for commercial dismantlement and updated naval shipyard cost estimates. The commercial and naval shipyard estimates will be reviewed and assessed by CAPE prior to the Navy making a decision on which option to pursue. CAPE's written report assessing the commercial and naval shipyard estimates is expected to combine with the ongoing EIS to directly inform the Navy's decision for CVN 65. We will continue to monitor the status of independent cost estimate activities for CVN 65 until the estimates have been completed.

Recommendation: The Secretary of Defense should require the Navy to complete a risk management plan prior to beginning the CVN 65 dismantlement and disposal. (Recommendation 3)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense agreed with this recommendation and stated that the Navy would prepare a risk management plan for the CVN 65 dismantlement and disposal before the award of a contract or the provision of funds. In August 2020, a Naval Reactors official stated that the draft environmental impact statement (EIS) for the carrier disposal will be published in the summer of 2021. The final EIS is planned for fall 2022 with an accompanying record of decision announcing the Navy's intended course of action for CVN 65 dismantlement and disposal. The official also confirmed that if the Navy selects the commercial dismantlement option for CVN 65, the Navy anticipates identifying potential risks and mitigations in February 2021 for CVN 65 dismantling to support independent cost estimate development, with risk management plan approval to follow in July 2022. If the Navy elects to have the dismantlement performed by the government, these activities will occur at a later date. We will continue to monitor the Navy's efforts to complete a risk management plan as the department works toward a decision for the CVN 65 dismantlement and disposal.

Recommendation: The Secretary of Defense should require the Navy to approve a cost and schedule baseline prior to beginning the CVN 65 dismantlement and disposal. (Recommendation 4)

Agency: Department of Defense
Status: Open

Comments: The Department of Defense agreed with this recommendation and stated that the Navy would prepare and approve a cost and schedule baseline for the CVN 65 dismantlement and disposal before the award of any contract or the provision of funds for the effort. Congress subsequently addressed our recommendation to the department on August 13, 2018, as part of the Fiscal Year 2019 National Defense Authorization Act. Specifically, the act requires the Secretary of the Navy to provide a report to the congressional defense committees that provides a cost and schedule baseline for the dismantlement and disposal of nuclear powered aircraft carriers approved by Navy leadership. In August 2020, a Naval Reactors official stated that the draft environmental impact statement (EIS) for the carrier disposal will be published in the summer of 2021. The final EIS is planned for fall 2022 with an accompanying record of decision announcing the Navy's intended course of action for CVN 65 dismantlement and disposal. The official also confirmed that the Navy anticipates developing a cost and schedule baseline for CVN 65 dismantlement and disposal in 2022 if the commercial dismantlement option is selected. If the Navy elects to have the dismantlement performed by the government, these activities will occur at a later date. We will continue to monitor the Navy's activities in order to document any action taken to implement this recommendation.

Recommendation: To improve insight into cost changes for individual ships in the Ford Class, the program office should prepare cost summary and funding summary sections for each individual ship in the class as part of the SAR for the overall Ford-Class program.

Agency: Department of Defense
Status: Open
Priority recommendation

Comments: In its comments on our draft report DOD disagreed with our recommendation, stating that it currently provides progress reports to Congress on costs for CVN 78 and CVN 79. In July 2020, Navy officials stated that the department continues to disagree with this recommendation. We continue to maintain that Selected Acquisition Reports represent the primary statutorily required means for DOD to report on program status. Grouping average unit costs for all Ford-class ships obscures individual ship cost growth and does not provide Congress with an adequate level of insight to monitor this over $55 billion program. Our recommendation would ensure that Congress receives insight into the costs of each existing and planned Ford-class ship. To fully implement this recommendation, the report should include cost information on individual ships.