U.S. Navy shipyard modernization could cost $200 billion and take 50 years

A Government Accountability Office (GAO) report indicates that the U.S. Navy’s Shipyard Infrastructure Optimization Program (SIOP) could cost more than $200 billion and take over 50 years to complete. The modernization effort, intended to upgrade four public shipyards—Norfolk, Portsmouth, Pearl Harbor, and Puget Sound—was originally estimated in 2018 to cost at least $21 billion over 20 years.

The GAO identified several critical issues, including aging infrastructure, workforce shortages, and limited shipyard space. The report notes that the scope of work has expanded significantly due to necessary seismic improvements, utility upgrades, and rising commodity prices. Furthermore, the Navy has not established a framework to regularly review program objectives and resources, creating a risk that the modernization will not align with future fleet and warfighting requirements.

Oversight concerns were also raised regarding Congressional reporting. Currently, Congress does not receive a single, consolidated annual report detailing total expenditures, revised schedules, and major risks, receiving instead fragmented briefings and reports on specific portions of the program.