Department of Defense Office of Inspector General

01/12/2026 | Press release | Archived content

Project Announcement: Audit of the Shipbuilding Industrial Base Contract Incentives for the Arleigh Burke-Class Destroyer Program (Project No. D2026-D000AU-0052.000)

Report | Jan. 12, 2026

Project Announcement: Audit of the Shipbuilding Industrial Base Contract Incentives for the Arleigh Burke-Class Destroyer Program (Project No. D2026-D000AU-0052.000)

Audit

The purpose of this memorandum is to notify you that we are initiating the subject audit. The objective of this audit is to determine whether the Navy effectively used and monitored contract incentives for the Arleigh Burke-class destroyer program. Specifically, we will focus on capital expenditure (CAPEX) incentives and surface combatant industrial base (SCIB) incentives. We may revise the objective as the audit proceeds, and we will also consider suggestions from management for additional or revised objectives. We plan to perform this audit in accordance with the Government Accountability Office's generally accepted government auditing standards.

We will perform the audit at the Navy Yard, Washington, D.C.; Supervisor of Shipbuilding, Conversion & Repair (SUPSHIP) - Gulf Coast, Pascagoula, Mississippi; and SUPSHIP - Bath, Maine. We may identify additional locations during the audit.

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