GAO finds Navy shipyard overhaul will take decades longer, cost billions more

September 26, 2026 at 02:51 AM2 min

This digest was compiled by AI from multiple sources — links to the originals are below.

The Government Accountability Office reported Friday that the Navy's Shipyard Infrastructure Optimization Program will take decades longer and cost billions more than initially planned. The watchdog found Congress has not been systematically kept apprised of the program's growing complexity. The Navy underestimated the time needed and did not fully account for challenges, uncertainties, and complex analyses required for SIOP's magnitude.

Key Facts

The GAO report released Friday found the Navy's Shipyard Infrastructure Optimization Program will take decades longer and cost billions more than initially planned.
The Navy found at least $1 billion would be needed for facility retrofits and new construction to mitigate newly assessed seismic risks at Puget Sound Naval Shipyard since 2023.
The Navy requested $830 million to conduct seismic upgrades for Dry Dock 4 at Puget Sound Naval Shipyard in its fiscal year 2026 budget request.
The GAO's analysis ran from September 2024 through September 2026.
Planning for the shipyard upgrades started in 2018 and has taken several years longer than anticipated.

Program Delays and Cost Growth

The Navy's effort to fix and improve its shipyards will take decades longer and cost billions more than initially planned. The service has struggled for years with maintenance backlogs that have, in at least one case, led a submarine to be retired early rather than fixed up. Planning for the shipyard upgrades started in 2018 and has taken several years longer than anticipated because the Navy underestimated the time needed and did not fully account for the many challenges, uncertainties, and complex analyses needed to sufficiently plan for an endeavor of SIOP's magnitude. New projects and costs were also discovered during design and planning.

Seismic Risks at Puget Sound

The Navy found at least $1 billion would be needed for facility retrofits and new construction to mitigate newly assessed seismic risks at Puget Sound Naval Shipyard since 2023. In 2023, the Navy completed emergency drydock retrofits and repairs. The Navy also requested $830 million to conduct seismic upgrades for Dry Dock 4 in its fiscal year 2026 budget request. Earthquake risks were included in SIOP's original 2018 assessment, the GAO noted.

Congressional Oversight Concerns

Congress has not been systematically kept apprised of the growing complexity of the Shipyard Infrastructure Optimization Program, the Government Accountability Office has found. Without a full picture of how much has been spent, what remains to be funded, and what risks may affect SIOP progress, Congress could make consequential decisions for SIOP based on incomplete information, thus risking billions in taxpayer dollars and a lack of program oversight for the decades to come, the GAO wrote. The Navy must already submit reports related to its shipyard construction efforts to comply with nearly a dozen legislative provisions. The watchdog agency suggested that Congress should require the service to annually report consolidated, standardized status updates, including revised cost and schedule estimates for the entire plan.