GAO: Navy should learn from commercial shipbuilding
A congressional watchdog agency recommended that the U.S. Navy could better manage costs and construction of new vessels by taking a page from the commercial shipbuilding industry.
'Delivering ships on time and within budget are imperatives in commercial shipbuilding,' said the Government Accountability Office in a report on Wednesday. The report was required as part of the fiscal year 2008 Defense Appropriations Act.
The GAO noted that commercial shipbuilders and buyers understand the design and cost to build a vessel before a contract is signed. During construction, buyers maintain a presence in the shipyard and at key suppliers to ensure the vessel meets quality expectations and is delivered on schedule.
'Navy programs often do not employ these best practices,' the GAO said. 'Ambitious requirements are set and substantial investments made in technology development, but often the Navy does not afford sufficient time to fully mature technology. New designs often make little use of prior ship designs.'
The GAO said: 'These inefficient practices cause Navy ships to cost more than they otherwise should, reducing the number of ships that can be bought under constrained budgets.'
The GAO suggested Congress consider refining required reporting to include additional 'design stability metrics.' The agency will also make recommendations to the defense secretary aimed at:
' Improving shipbuilding programs by balancing requirements and resources early.
' Retiring technical risk and stabilizing design at key points.
' Moving to fixed-price contracts for lead ships.
' Evaluating in-house management capability.
' Assessing if the desired fleet size sufficiently constrains the cost and technical content of new ships.
The complete GAO report is available online.
GAO: Navy should learn from commercial shipbuilding
