A new audit by the Government Accountability Office (GAO) has revealed that the U.S. Navy’s Columbia-class submarine program is facing severe cost overruns and delays. The GAO report, released on September 30, 2024, shows that the program’s construction costs could exceed initial estimates by up to six times, with delays threatening the delivery of the first submarine by up to 16 months.
The Columbia-class submarine program has been plagued by rising costs and ongoing delays since its inception. The lead submarine is now expected to be delivered between October 2028 and February 2029. The GAO warned that this delay could jeopardize the submarine’s availability for operations in 2030, a deadline for maintaining the U.S. nuclear deterrent.
“Our independent analysis calculated likely cost overruns that are more than six times higher than the prime contractor’s estimates and almost five times more than the Navy’s,” the GAO stated in its report.
General Dynamics Electric Boat, the program’s prime contractor, has been criticized for overly optimistic cost estimates that rely on performance improvements GAO says are unlikely to materialize The report criticized both the Navy and the contractor for failing to resolve long standing issues such as late materials and incomplete design products.
The audit highlighted that the lead submarine’s construction could cost hundreds of millions of dollars more than planned.
The report also points out the Navy’s failure to properly track the impact of its investments in the submarine supplier base. Since 2018, the Navy has disbursed more than $2.6 billion to support the development of the Columbia-class program. However, the audit found that the Navy has not consistently defined how to measure whether these investments are generating the desired results.
The number of U.S. companies producing submarine components has dwindled from 17,000 during the Cold War to just 3,500 today, putting added strain on the Columbia-class program. The Navy and shipbuilders have been providing “supplier development funding” to maintain critical production lines, but the GAO found that the Navy has not ensured that these funds are being used effectively.
The GAO issued five recommendations to address the program’s challenges, including directing the Navy to require the shipbuilder to revise its cost estimates and improve its reporting on construction progress. The Navy agreed with the recommendations and pledged to implement corrective actions.
The Columbia-class program is the Navy’s highest acquisition priority, with nearly $130 billion earmarked for the construction of 12 submarines. Despite the program’s strategic importance, the ongoing delays and cost overruns have raised concerns about its long-term viability and the Navy’s ability to maintain its sea-based nuclear deterrent.
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