Navy’s shipyard revamp could cost more than $200 billion: GAO

WASHINGTON — The Navy’s initiative to revamp its four public shipyards could come with a price tag nearly ten times higher than initially estimated and take decades longer to complete, according to a new government watchdog report. 

The Shipyard Infrastructure Optimization Program (SIOP) launched in 2018 and aims to upgrade the drydocks and standard equipment at the service’s current four shipyards in Virginia, Maine, Washington and Hawaii that oversee repairs for the Navy’s nuclear-powered aircraft carrier and submarine fleet. 

Initially, the service predicted the effort would take roughly 20 years and cost approximately $21 billion, although Navy officials overseeing SIOP efforts told Breaking Defense last year that those estimates were outdated. A Government Accountability Office report released today, however, said that the project could take 50 years and cost $200 billion.

According to the report, the initial estimate “omitted key costs,” and that factors including commodity prices increases and seismic concerns at Puget Sound Naval Shipyard that require “needed retrofits and construction” are driving up costs and adding time to the SIOP initiative. 

“Developing the plans and cost estimates to rebuild the Navy’s four public shipyards has taken the Navy years longer — and will cost much more — than originally anticipated due to multiple challenges and changes involved in the program,” the report said.

Additionally, the report said that more shipyard construction and repair projects have been added to the SIOP program since 2018, and that the Navy has implemented some design changes stemming from “lessons learned from projects already underway.” 

“For example, the costs for the dry-dock projects in Portsmouth and Pearl Harbor in total grew by more than $2.5 billion since funding was originally requested from Congress,” the report said. 

The GAO also noted that the Navy isn’t mandated to submit a consolidated report to lawmakers on SIOP program costs and other “risks” associated with the effort, but rather, it shares updates on “various aspects” of the SIOP program instead. Ultimately, the GAO recommended that Congress require the Navy to share an annual and standardized report to lawmakers 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 GAO 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 the SIOP program is complete. Typically, a submarine maintenance availability lasts 25 to 36 months, but improvements stemming from the SIOP program would reduce that by approximately three months, officials previously said.

Meanwhile, President Donald Trump is pushing for a fifth public shipyard to bolster aircraft carrier and submarine readiness.