The U.S. Navy’s Shipyard Infrastructure Optimization Program (SIOP) could cost more than $200 billion and take more than 50 years to complete, according to a Government Accountability Office (GAO) report released Friday. The figure is nearly ten times the program’s original estimate of about $21 billion and a 20-year timeline, which the Navy set when SIOP launched in 2018.
The GAO report said the initial estimate “omitted key costs” and that factors including commodity price increases and seismic concerns at Puget Sound Naval Shipyard requiring “needed retrofits and construction” are driving up costs and adding time. More shipyard construction and repair projects have been added to SIOP since 2018, and the Navy has implemented design changes stemming from “lessons learned from projects already underway,” the report said.
As an example, the report cited dry-dock projects at Portsmouth Naval Shipyard in Kittery, Maine, and Pearl Harbor, Hawaii, whose combined costs grew by more than $2.5 billion since funding was originally requested from Congress.
The program aims to upgrade drydocks and standard equipment at the Navy’s four public shipyards in Virginia, Maine, Washington, and Hawaii, which handle repairs for the Navy’s nuclear-powered aircraft carrier and submarine fleet. The GAO noted that the Navy is not mandated to submit a consolidated report to lawmakers on SIOP program costs and risks, instead sharing updates on “various aspects” of the program.
The GAO recommended that Congress require the Navy to share an annual, standardized report detailing the program’s cost and status. “Without a full picture of how much has been spent, what remains to be funded, and what risks may affect SIOP progress, Congress could make consequential decisions for SIOP based on incomplete information, thus risking billions in taxpayer dollars and a lack of program oversight for the decades to come,” the report said.
Navy officials previously told Breaking Defense in 2025 that they predict a 10 percent improvement in aircraft carrier maintenance and a 15 percent improvement for submarine maintenance once SIOP is complete. They said a typical submarine maintenance availability lasts 25 to 36 months, and SIOP improvements would reduce that by approximately three months. President Donald Trump is pushing for a fifth public shipyard to bolster aircraft carrier and submarine readiness.
Sources: Navy Times · DVIDS News