# Navy Expands Shipyard Overhaul Costs and Timeline

The U.S. Navy's Shipyard Infrastructure Optimization Program (SIOP), which targets modernization of four public naval shipyards, is now projected by the Government Accountability Office (GAO) to cost up to **$200 billion** and extend over **50 years**, significantly surpassing the Navy's original 2018 estimate of $21 billion and 20 years. The GAO audit highlights substantial cost overruns and schedule delays, recommending that Congress mandate standardized annual reporting from the Navy to enhance oversight, transparency, and risk management throughout this extensive, multi-decade procurement effort.

- The four shipyards involved include Norfolk Naval Shipyard (Virginia), Pearl Harbor Naval Shipyard (Hawaii), Portsmouth Naval Shipyard (Maine), and an additional facility in Portsmouth, New Hampshire.
- Procurement professionals should anticipate long-term contracting opportunities related to infrastructure modernization, maintenance, and construction services at these key naval facilities.
- The significant budget increase and extended timeline indicate evolving funding requirements and potential shifts in contract scopes, necessitating adaptive procurement strategies.
- Enhanced Congressional oversight and reporting requirements may lead to more rigorous compliance and performance monitoring for contractors engaged in this program.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Physical Infrastructure
**Published:** September 25, 2026

### Government Entities
- United States Navy (Navy)
- Government Accountability Office (GAO)
- United States Congress (Congress)

### Sources
- [The Navy’s public shipyards will take more decades to repair, GAO says - Defense One](https://www.defenseone.com/policy/2026/09/navys-public-shipyards-will-take-more-decades-repair-gao-says/416251) - Defense One
- [Navy's shipyard revamp could cost more than $200 billion: GAO - Breaking Defense](https://breakingdefense.com/2026/09/navys-shipyard-revamp-could-cost-more-than-200-billion-gao) - Breaking Defense