The Navy is beset with long-standing problems that affect its ability to accomplish ambitious goals for its shipbuilding portfolio. Significant cost growth and long schedule delays are persistent problems. Making headway on these problems is essential in light of the serious budget pressures facing the nation. This testimony focuses on the following: (1) cost growth in shipbuilding; (2) acquisition approaches in the LPD 17, Littoral Combat Ship, DDG 1000, and CVN 78 programs; and (3) steps the Navy can take to improve its acquisition decision making, particularly the adoption of a knowledge-based framework. While GAO is making no new recommendations in this testimony, GAO has made numerous recommendations through the years to improve business cases for Navy acquisitions as well as other Department of Defense weapon acquisitions. The Department's acquisition policies largely incorporate these recommendations, but they have not been implemented on actual programs.

Defense Acquisitions: Realistic Business Cases Needed to Execute Navy Shipbuilding Programs

The U.S. Navy is about to begin construction of the first Zumwalt-Class destroyer (DDG 1000) amid considerable uncertainties and a high likelihood of cost and schedule growth. Significant cost growth and schedule delays are persistent problems that continue to compromise the Navy¿s shipbuilding goals. This testimony focuses on: (1) the challenges faced by the DDG 1000 program; and (2) the strain such challenges portend for long term shipbuilding plans. Charts and tables.