“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 Government Accountability Office wrote in a report released Friday.
GAO’s central warning to Congress
The GAO’s report frames the Shipyard Infrastructure Optimization Program (SIOP) as a long-running construction and modernization effort whose cost and schedule have grown well beyond initial expectations. The watchdog found that Congress has not been “systematically kept apprised” of SIOP’s increasing complexity and recommended that lawmakers require “annually report consolidated, standardized status updates,” including revised cost and schedule estimates for the entire plan. The GAO noted that while the Navy already submits reports to comply with nearly a dozen legislative provisions, those fragmented submissions do not provide the unified picture the GAO says Congress needs.
How the program slipped: timeline, planning, and review
Planning for the shipyard upgrades began in 2018. The GAO’s formal analysis covered September 2024 through September 2026. It concluded the Navy “underestimated the time needed” and “did not fully account for the many challenges, uncertainties, and complex analyses needed to sufficiently plan for an endeavor of SIOP’s magnitude.” Navy leaders were expected to consider the SIOP plan and cost estimate by September 2026, the same month the GAO completed its two-year review window.
Audit-ready is a season. It shouldn't be.
Evidence in spreadsheets, controls drifting between audits, frameworks multiplying on flat headcount. Nubivance runs continuous compliance on Rapid7 Cyber GRC - SOC 2, HIPAA, ISO 27001, PCI, CMMC.
End the scrambleCosts and new work identified during construction
As designs and planning progressed, projects and costs not in original estimates were discovered. The GAO highlighted seismic risks at Puget Sound Naval Shipyard as an example: since 2023 the Navy identified at least $1 billion in facility retrofits and new construction needed to mitigate newly assessed seismic hazards. In 2023 the Navy completed emergency drydock retrofits and repairs, and in its fiscal year 2026 budget request the service sought $830 million to conduct seismic upgrades for Dry Dock 4. Taken together, the GAO said these and other revelations mean SIOP will take “decades longer and cost billions more” than initially planned.
Age, deferred maintenance, and operational consequences
The report emphasizes that many shipyards and their facilities were built close to a century ago and that problems are compounded by “long-deferred maintenance and worsening decrepitude.” Those conditions produced unexpected facility and construction-site findings that led to new projects or additional work added during construction. The operational impact has been tangible: the GAO noted that maintenance backlogs have, in at least one case, led a submarine to be retired early rather than repaired.
Navy organization, roles, and risk management gaps
The GAO also scrutinized how the Navy manages SIOP internally. Although the Navy created multiple organizations to manage the program’s projects, it has not “fully documented” SIOP’s roles and responsibilities. The GAO recommended documenting the program’s role and duties to improve project risk management and continuity. In addition to the reporting recommendation, the agency made three other recommendations, including incorporating reviews of future program needs into the oversight framework.
What this means for Congress, the Navy, and shipyard operations
- Congress: The GAO says lawmakers face a choice — insist on a consolidated, standardized annual status report that includes revised cost and schedule estimates, or continue to make decisions based on fragmentary submissions that the watchdog warns could risk billions in taxpayer dollars.
- The Navy: Officials must both finalize the SIOP plan and cost estimate (expected to be considered in September 2026) and formally document roles and responsibilities across the multiple organizations created to execute SIOP if they are to improve risk management and ensure program continuity.
- Shipyard operations and fleet readiness: Decades-long repair timelines, newly identified seismic retrofits (including the $1 billion-plus work at Puget Sound and the $830 million Dry Dock 4 request in the FY2026 budget), and long-deferred maintenance suggest ongoing construction surprises and continued strain on the ability to maintain and modernize nuclear-powered submarines and aircraft carriers.
The GAO’s message is blunt: without consolidated reporting, clear roles, and an oversight framework that anticipates future needs, the Navy’s decades-spanning effort to repair and modernize its public shipyards risks ballooning cost and schedule exposure. Congress must decide whether to act on the GAO’s call for standardized, consolidated annual updates before the program’s next phases proceed.
