The U.S. Navy has reportedly wasted $1.84 billion since 2015 on rehabilitating its Ticonderoga class guided-missile cruisers. This information comes from a government watchdog report released by the Government Accountability Office (GAO) on June 20, 2024. The report indicates that the Navy would have preferred to allocate these funds towards newer technology.
According to the GAO’s “Navy Ship Modernization” report, the cruiser rehabilitation program suffered from “weak oversight” and numerous challenges such as scheduled delays, wasted costs, and poor-quality work. The Navy spent an estimated $3.7 billion modernizing seven cruisers, but nearly half of that amount ($1.84 billion) was wasted on four ships that were divested before they even deployed.
The report also highlighted that the Navy failed to effectively plan the cruiser modernization effort, resulting in over 9,000 contract changes, which led to significant cost growth and schedule delays. Furthermore, the Navy has not identified the root causes of these issues.
Originally, the Navy intended to rehabilitate 11 cruisers, but only seven were selected for upgrades. Out of those, only three are expected to complete the modernization process, and none will achieve the additional five years of service life that were initially intended.
The costs for the four cruisers that never deployed are detailed as follows:
– *Hue City*: $161.15 million
– *Anzio*: $250.54 million
– *Cowpens*: $678.56 million
– *Vicksburg*: $745.05 million
In 2012, the Navy proposed retiring several cruisers to meet budget constraints. However, Congress rejected that proposal and instead allocated funds for cruiser modernization. The modernization effort was initially expected to conclude by Fiscal Year 2026. Despite these challenges, Navy officials are now focusing on enhancing their 23-ship destroyer fleet, which is deemed critical for a combat-ready fleet.
The GAO report includes six recommendations for the Secretary of the Navy, emphasizing the need for better planning and oversight for future large-scale modernization projects. Recommendations include reassessing the quality assurance approach and ensuring accountability within the Navy’s modernization efforts.
Additionally, a related GAO report released recently indicated that nearly half of the Navy’s 32 amphibious assault ships are frequently unavailable due to maintenance issues, adversely affecting Marine Corps exercises and deployments.
The Dec. 3 GAO report specifically audited amphibious warfare ship maintenance at Naval Station Norfolk, Virginia, and Naval Base San Diego, California, from April 2023 to December 2024. The shortage of available ships has significantly impacted readiness and operational capacity for the Marine Corps.
Lt. Col. Joshua Benson, a Marine spokesman, stated that the state of readiness directly affects the Marine Corps’ ability to meet Combatant Command needs and maintain a continuous presence with Marine Expeditionary Units. Out of the 32 amphibious warfare ships examined, it is expected that 16 will not reach their 40-year service life, necessitating an estimated $1 billion per ship to extend their operational longevity.
