A recent report from the Government Accountability Office (GAO) has uncovered a troubling trend within the U.S. Navy’s budget management.
Since 2015, the Navy has misallocated approximately $1.84 billion intended for refurbishing Ticonderoga-class guided-missile cruisers, funds that could have been far better invested in advancing new technologies.
Navy Cruiser Modernization Challenges
Entitled “Navy Ship Modernization,” the GAO’s report raises significant concerns about the Navy’s cruiser modernization efforts, pointing out the project’s lack of adequate oversight and highlighting issues such as project delays, rising costs, and poor workmanship.
In its pursuit to modernize a total of seven of these formidable surface warfare ships—renowned for their advanced air defense capabilities—the Navy has spent about $3.7 billion.
Alarmingly, around half of that total, approximately $1.84 billion, was essentially wasted on four cruisers that were decommissioned before they could ever be put to use.
The report’s authors expressed their discontent with the Navy’s planning strategies for the modernization of these cruisers.
They noted a staggering number of unexpected changes to contracts—nearly 9,000—which exacerbated both delays and budget overruns.
Furthermore, they emphasized that the Navy has yet to clearly identify the fundamental issues plaguing this program.
Fiscal Issues and Future of the Navy Fleet
Initially, the Navy intended to upgrade 11 cruisers, but ultimately, only seven made the cut for modernization.
Of those, just three are on track to complete their upgrades, and none of the rehabilitated ships will achieve the intended five-year lifespan extension outlined in the original program objectives.
The analysis reveals the specific modernization costs for the four cruisers that never saw deployment: Hue City with a bill of $161.15 million, Anzio at $250.54 million, Cowpens racking up $678.56 million, and Vicksburg costing $745.05 million.
Back in 2012, the Navy proposed to retire several cruisers in light of budget constraints, but Congress rejected this suggestion, opting instead to allocate funding for modernization efforts.
Originally, the Navy expected to complete this modernization initiative by Fiscal Year 2026, yet resources have been redirected towards maintaining the 23-ship destroyer fleet, which officials consider vital for operational readiness.
To address these issues, the report concludes with six key recommendations for the Secretary of the Navy.
These suggestions emphasize the need for updated planning and oversight policies, accountability measures for vessels undergoing significant changes, and an assessment of the modernization program to fortify quality assurance protocols.
Operational Challenges for Amphibious Assault Ships
In a related finding, the GAO also noted that nearly half of the Navy’s 32 amphibious assault ships—critical for Marine operations in coastal regions—frequently face maintenance problems, leading to reduced availability.
This shortage has resulted in missed training opportunities and deployment delays for Marine Expeditionary Units that rely heavily on these ships.
The limited number of operational amphibious ships has posed considerable challenges for groups like the Boxer and America, causing essential exercises and deployments to be postponed.
A Marine Corps spokesman expressed concerns that the current state of these ships compromises the Marines’ ability to meet Combatant Command requirements and maintain a consistent presence with Marine Expeditionary Units.
Out of the fleet of 32 amphibious ships, officials predict that 16 won’t reach their intended 40-year lifespan.
Nevertheless, it’s critical for the entire amphibious fleet to remain operational beyond their projected retirement date to satisfy the requirement of maintaining at least 31 operational amphibious warfare ships.
This necessity is projected to incur a staggering cost of approximately $1 billion for each vessel.
Source: Militarytimes