US’ next-gen nuclear submarines suffer delay with costs soaring past $130 billion

A new report from the Government Accountability Office (GAO), a nonpartisan watchdog that reviews government operations for Congress, highlighted problems with the construction of the new submarines.

The GAO noted that both cost and schedule targets for the lead submarine have consistently been missed, according to the report released on Monday, Gizmodo reported.

“Our independent analysis calculated likely cost overruns that are more than six times higher than Electric Boat’s estimates and almost five times more than the Navy’s. As a result, the government could be responsible for hundreds of millions of dollars in additional construction costs for the lead submarine,” the GAO said in its report .

Navy plans to replace aging Ohio-class subs

The country’s nuclear weapons are deployed through three methods: intercontinental ballistic missiles launched from silos, bombs dropped from strategic bombers, and missiles fired from stealth submarines .

This combination, known as the nuclear triad, is essential to national defense. Among the three, submarines are the most critical due to their stealth capabilities, making them nearly impossible to detect and capable of carrying enough nuclear warheads to level entire cities.

The Ohio-class submarines, constructed in the 1960s and 1970s and first deployed in 1981, are aging, with maintenance costs increasing annually. The Navy proposed replacing them with more advanced Columbia-class submarines, aiming to launch by 2027 at an estimated cost of $9 billion each for a fleet of 12.

General Dynamics Electric Boat is currently building the first Columbia-class submarine, but the construction is facing significant challenges. According to the GAO report, the program has struggled with ongoing issues such as delays in materials and design products, despite efforts over the years to address these problems. The report also stated that swift and substantial action is needed to improve the construction performance .

Submarine construction faces skilled labor shortages

Some of the challenges are systemic, as there are few skilled workers in the US capable of building nuclear submarines. Between the 1980s and 2020, the submarine supplier base, which provides critical parts and materials, has drastically reduced from around 17,000 suppliers to just 3,500.

This has led Columbia-class shipbuilders to increasingly depend on single-source suppliers, limiting competition for contracts, according to the GAO.

As Defense One writes , the Navy and shipbuilders provide “supplier development funding” to support these critical suppliers. This funding is divided into two categories: “direct investments in suppliers,” which cover expenses like equipment, factory upgrades, and workforce development, and “specialized purchases to signal demand,” which involve placing orders to ensure that suppliers remain capable and motivated to produce, even when their products are not immediately required.

However, the GAO found that the Navy has not adequately assessed whether its financial investments in the supplier base are being utilized effectively. The GAO report outlined that the Navy has inconsistently defined the necessary information to evaluate whether these investments have led to increased production or cost savings and how these outcomes align with the program’s objectives.