Improvements Needed in the Navy's Fleet Modernization Program

GAO reviewed the Navy's fleet modernization program to determine the: (1) adequacy of budgeting and funding; (2) extent that funded alterations were done; (3) the justifications for deferring alterations; (4) the degree that work was backlogged for unaccomplished alterations; (5) disposition of funds from unaccomplished or deferred alterations; (6) amount of visibility of alteration material; and (7) coordination of procured material with available installation funds.

The Navy does not have a configuration management system to show the completed and outstanding alterations for each ship. Consequently, it cannot readily determine the amount of alteration work outstanding. The Navy is unable to determine from its onhand inventory records which items were purchased for the fleet modernization program. Without complete information on on-hand inventories of alteration material, the Navy could not determine: (1) the status of its modernization program; (2) relative to outstanding alterations to be installed; (3) its impact on future procurements; and (4) whether to program the equipment for installation or use it for other programs. The Navy's computerized system is the database for planning and programming ship alterations, but it is not fully effective because: (1) customers using the system lack confidence in it; (2) 50 percent of the customers rely on other data systems that are mostly duplicative; (3) customers are not making concerted efforts to improve the system to make it work; and (4) full capability of the system is not used.

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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