Strategic mindset sought for US Navy shipbuilding and repair, says GAO report

Newport News Shipbuilding (pictured) has received contract incentives for its aircraft carrier and submarine construction work. (Janes/Michael Fabey)

In the wake of a 27 February report from the US Government Accountability Office (GAO) questioning the focus of the US Navy (USN) on shipbuilding and ship repair, John Phelan, USN secretary nominee, testified the same day to the Senate Armed Services Committee (SASC) that shipbuilding was a priority for President Donald Trump – and therefore for him, too.

Phelan said he planned to review every navy contract “on day one” to see what restructuring may be needed in those deals.

The GAO called for the USN to “establish metrics for its investments; assess its repair needs; and create a ship industrial base strategy” in its report, Shipbuilding and Repair: Navy Needs a Strategic Approach for Private Sector Industrial Base Investments.

“The navy plans for a larger, more capable fleet of ships to counter evolving threats,” the GAO said. “But the navy has struggled to increase the size of the fleet for the past two decades. Its performance in shipbuilding and ship repair is critical to achieving the desired future fleet.”

By fiscal year (FY) 2026, the navy expects to have no more ships than it did when it released its first 30-year shipbuilding plan in 2003, the GAO pointed out, attributing that to “a combination of slower than expected new ship construction and the decommissioning of older ships”.