Navy Should Reconsider Plans To Acquire New Fleet Oilers and Ocean Tugs

As part of its replacement program for aging fleet ocean tugs, the Navy is constructing four new tugs at a cost of $54.8 million, and three additional tugs approved in fiscal year 1978 will cost about $53 million.

The need for the three fleet ocean tugs approved in 1978 is questionable. In justifying the new tugs, the Navy underestimated U.S. merchant marine capability; it did not give appropriate consideration to other Navy and friendly nation capability; it did not adequately determine wartime requirements; and it overstated peacetime requirements. By deferring procurement of the three tugs, the Navy could avoid initial costs of over $53 million and could save an estimated $3 million a year in operating costs. A review of the Navy's fleet oiler replacement program revealed that: based on wartime requirements and mission of the fleet oiler, it is questionable whether the Navy needs the number and type of oiler desired; viable lower cost alternatives to the Navy's replacement fleet oiler have not received adequate consideration; and little has been done to enhance U.S. commercial tanker capability as an effective supplement to the Navy's underway replenishment capability

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

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