Since the closure of the Navy Ship Repair Facility, Guam, the Navy and  MSC have relied on four different sources to provide voyage repairs in  Guam. Navy Has Not Identified Future Voyage Ship Repair Requirements at Guam although Some information is Available for Use in Planning

The Navy has not identified voyage ship repair requirements for 2012 and  beyond for surface vessels operating at or near Guam, although some  information is available on which to base estimated requirements to  support planning efforts. First, the Navy has not  fully identified its future Pacific force structure or finalized operational  plans. Second, the Marine Corps’ plans for additional vessels, if any, and  operations at Guam are still evolving. Estimation of requirements is a prerequisite for  assessing each option’s ability to address those requirements in a cost- effective and timely fashion. MSC also expects changes to its force structure operating near Guam, but  the timeline for these changes is uncertain. Specifically, the Navy knows the history of voyage repairs conducted on  Guam; it can identify vessels likely to operate near Guam, based on  planned force structure realignments in the 2006 Quadrennial Defense  Review; and it can identify ship repair capabilities available at other  strategic locations in the area, including Pearl Harbor, and Yokosuka,  Japan. Third, the Navy could develop a new repair facility, which would  entail significant planning, repair of existing infrastructure, and possibly  new military construction. Fourth, the Navy could contract out the work  to either or both of the existing private ship repair providers or to any  other contractor that might choose to locate at Guam. Naval shipyards. If the lease on the property at the former Naval Ship Repair Facility,  Guam, is allowed to expire, establishing a new Navy-owned ship repair  capability at that location would require the Navy to address  infrastructure, equipment, and personnel requirements to create the  capability needed to meet surface voyage repair requirements on Guam. However,  Navy officials have stated that they do not intend to develop plans for a  voyage ship repair capability on Guam until preparations for the 2012  budget cycle begin. Without performing an assessment of the viability of  each of the options for voyage repairs in a timely manner to support  planning and budgeting of critical tasks, the Navy risks not having  adequate voyage repair capabilities in place when needed to support  operations in the Pacific Ocean, and as time passes, limits the options that  could be available to it by 2012. Recommendations for Executive Action

To ensure that adequate voyage repair capabilities are available for ships  operating near Guam, and recognizing the lead time required to implement  options, we recommend that the Secretary of Defense direct the Secretary  of the Navy to    estimate requirements for repairs for surface vessels operating at or  near Guam based on data determined to be most appropriate by the  Secretary of the Navy;    assess the benefits and limitations of each of the options for providing  repairs to ships operating near Guam, and perform an assessment of  anticipated costs and risks associated with each option; and    select the best option or combination of options for providing repair  capabilities to support surface ships operating near Guam, and develop  a plan and schedule for implementing a course of action to ensure that  the required ship repair capability will be available by October 2012. However, at the time of our exit briefing with the Navy in  January, the Navy did not inform us of this plan. Appendix I: Scope and Methodology

To determine the extent to which the Navy has identified future ship  repair requirements for ships operating in the Guam area and assessed  options to address those requirements, we reviewed documents related to  ship maintenance. In addition, we interviewed officials responsible for  force structure planning, contracting for repairs on vessels belonging to  the U.S. Navy and Military Sealift Command, and performing repairs on  vessels belonging to the Navy and Military Sealift Command on Guam as  well as related organizations in Hawaii, and on the west coast of the  United States.
Why GAO Did This Study

Unscheduled ship maintenance, known as voyage repairs, is a high priority for the U.S. Navy. Such repairs are sometimes beyond the capability of the ship's crew to perform; cannot be deferred; and must be made at a remote location. After the 1995 Base Realignment and Closure Commission recommended closing the former Naval Ship Repair Facility, Guam, the Navy leased the property at that facility to the Guam Economic Development and Commerce Authority, which sub-leased the property to a private shipyard. DOD has since begun planning for a military buildup on Guam. In January 2007 the Navy recommended allowing the private shipyard's lease on Navy land to expire in 2012. Consequently, the House Armed Services Committee asked GAO to determine the extent to which the Navy has (1) identified future ship repair requirements at Guam, and (2) identified and assessed options to address those requirements. GAO reviewed documents related to ship maintenance and interviewed officials affiliated with private contractors, the Guam government, the Marine Corps, Military Sealift Command, and the Navy in conducting this review.

What GAO Found

The Navy has not identified voyage surface ship repair requirements for 2012 and beyond for vessels operating near Guam, although some information is available on which to base estimated requirements for planning. Navy officials stated that they cannot estimate such requirements because the Navy expects to change its force structure, the Marine Corps has not finalized its plans for any additional vessels associated with the buildup, and Military Sealift Command expects changes to its force structure at Guam. Although the Navy, Marine Corps, and Military Sealift Command have not made final force structure decisions or operational plans for vessels operating at or near Guam, information is available to support an estimation of ship repair requirements as part of the multiyear planning and budgeting process. Specifically, the Navy (1) knows the history of voyage repairs conducted on Guam; (2) can identify vessels likely to operate near Guam based on planned force structure realignments in the 2006 Quadrennial Defense Review; and (3) can identify ship repair capabilities available at other strategic locations in the Pacific area, including Yokosuka, Japan. Developing requirements is a prerequisite for planning, and without developing estimated repair requirements the Navy cannot adequately evaluate options for meeting them. Navy officials identified potential options for providing repairs in Guam, but have not fully assessed their viability or identified time-critical planning tasks. According to Navy officials, once the Navy identifies voyage ship repair requirements for the Guam area, they will choose from four options or a combination of options for providing voyage repairs. First, the Navy could try to expand existing organic repair capabilities to conduct voyage repairs. However, the existing ship maintenance capabilities and facilities have little excess capacity without augmentation, limiting their ability to perform additional work. Second, the Navy could rely on repair teams flown in from naval shipyards in the United States. Third, the Navy could build a new Navy ship repair facility, though that could require years of planning and new funding. Fourth, the Navy could contract out work to either or both of the private ship repair providers now operating in Guam, or to any other private ship repair facility that might choose to locate in Guam. Three of these options might require building new facilities or expanding existing facilities. Officials said they would not begin planning until preparations begin for submissions to the President's budget for fiscal year 2012. However, lead time is required to perform planning tasks necessary to provide repair capabilities from the Navy's suggested options. Without assessing the viability of each option for voyage repairs in a timely manner, the Navy increases the risk that voyage repair capabilities for ships operating in the Pacific may not be available when needed, potentially undermining ships' ability to accomplish their missions.