The COEA concluded that a 155-millimeter, 60-caliber gun system with an advanced propellant and precision-guided munitions in combination with the Tomahawk missile was the most cost-effective NSFS option. In the interim, the Navy has decided to upgrade its existing 5-inch, 54-caliber guns and develop a 5-inch precision-guided munition. In December 1994, the Chief of Naval Operations approved the Navy’s revised NSFS plan, and in January 1995, directed the Naval Sea Systems Command to (1) initiate upgrades to the 5-inch, 54-caliber gun to deliver precision-guided munitions; (2) develop a 5-inch precision-guided munition with an initial operational capability before fiscal year 2001; and (3) scale back liquid propellant gun technology efforts. According to the Navy, it will need about $246 million in research and development funds between fiscal years 1996 and 2001 for the revised NSFS program. As a result, the Navy’s research and development program is underfunded by about $86 million. The Navy did not perform a supplemental analysis to its original COEA before it decided to restructure the NSFS program. The Navy is currently conducting a supplemental analysis to evaluate near-term alternatives for NSFS. It is not clear whether a supplemental analysis that considered all gun options—5 and 8 inch and 155 millimeter—against the Marine Corps’ new distance requirements would support the Navy’s decision to upgrade the 5-inch gun because (1) larger guns firing advanced projectiles with more payload can attack more targets than smaller, 5-inch guns and (2) the original COEA found that the rankings of the eight most cost-effective systems were not sensitive to range.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the Navy's upgrade of its surface ships' guns to determine whether the Navy has chosen the most cost-effective system for improving naval surface fire support (NSFS).

What GAO Found

GAO found that: (1) the Navy did not sufficiently analyze its needs before deciding on the upgrade of its 5-inch, 54-caliber guns and the development of a 5-inch precision-guided munition; (2) the Navy determined that the most cost-effective system to meet NSFS needs by fiscal year (FY) 2003 would be a 155-millimeter, 60-caliber gun with an advanced propellant and precision-guided munitions in combination with the Tomahawk Land Attack Missile; (3) although it initially proposed to develop the guns at a cost of about $360 million, the Navy has decided to limit the program to upgrading existing guns and developing precision-guided munitions to meet the reduced funding level; (4) the Navy estimates that research and development (R&D) costs for the 5-inch guns will be about $246 million; (5) the Navy R&D budget has a $86-million shortfall that will be corrected in FY 1997; (6) the Marine Corps has revised its minimum NSFS range requirement to reflect the Navy's restructured gun program; and (7) the Navy is conducting a supplemental analysis to evaluate near-term alternatives for NSFS, but it is unclear whether this analysis will support the Navy's decision to upgrade the 5-inch gun.