The shipbuilding industrial base is warning that the US Navy's aircraft carrier delay could be a disaster
Story by cpanella@businessinsider.com (Chris Panella)
The US Navy wasted almost $2 billion on a failed effort to upgrade its cruisers, a watchdog report found.
Four Ticonderoga-class vessels in the program were decommissioned before refits were completed.
The report said schedule delays, poor planning, and quality oversight led to wasted funds.
The US Navy wasted nearly $2 billion on a failed effort to overhaul its aging cruiser fleet, a government watchdog investigation found.
After Congress rejected the Navy's 2012 proposal to retire its Ticonderoga-class cruisers, it provided funding for a 15-year ship modernization program. Since 2015, the Navy has spent roughly $3.7 billion of those funds trying to modernize seven cruisers.
But poor planning and oversight forced the sea service to decommission four of the seven cruisers mid-service, according to the Government Accountability Office. It said in a new report that "the Navy wasted $1.84 billion modernizing four cruisers that have now been divested prior to deploying."
The deactivated warships were then cannibalized for parts for the remaining cruisers in the modernization program.
A delay in procuring the next US Navy aircraft carrier could have major impacts on its industrial base.
It'll affect more than 2,000 businesses, representing over 60,000 jobs across the country.
If production slows, it'll take more effort to restart and maintain the workforce.
The industrial base building the US Navy's next-generation aircraft carriers is sounding the alarm on another potential delay that could affect thousands of suppliers — and tens of thousands of workers.
https://www.msn.com/en-us/money/markets/the-shipbuilding-industrial-base-is-warning-that-the-us-navy-s-aircraft-carrier-delay-could-be-a-disaster/ar-AA1BNf7t?ocid=widgetonlockscreen&cvid=ca3eee76c6ba4945bf7f8ea363da669f&ei=89
