What GAO Found

The Navy has suffered significant losses from 13 fires on ships undergoing maintenance since 2008. The Navy investigated these fires, including one on board the USS Bonhomme Richard in 2020. Based on actions taken since that fire, the Navy has improved fire safety and culture in the Navy and among contractors-contributing to no major fires since 2020.

However, staffing shortages threaten progress and oversight. GAO found that key organizations responsible for fire safety oversight have personnel shortages. Such shortages limit the Navy's oversight of fire safety standards and add a burden for sailors who are balancing other duties.

Image of the July 2020 Major Fire Aboard the USS Bonhomme Richard

Further, the Navy did not fully assess challenges with contractor oversight. In reviewing the Navy's key oversight tools, GAO found that these tools do not effectively address contractor compliance with fire safety standards during ship maintenance periods:

Corrective Action Requests. The Navy uses these requests to bring contractors into compliance with contract requirements. But this process does not incorporate monetary penalties to address persistent issues. As a result, the Navy issued many requests related to fire safety, including a severe warning prior to the USS Bonhomme Richard fire, but fire safety issues continued.

Quality Assurance Surveillance Plans. These plans are a tool through which the Navy assesses monetary penalties. The Navy's guidance and its quality assurance surveillance plans for the six ships GAO reviewed did not assess penalties for noncompliance with contractual safety standards.

Progress Payment Retention Rates. The Navy generally pays contractors as maintenance work is completed, retaining some payment until the work is done. The Navy's continued use of a reduced retention rate implemented in response to the COVID-19 pandemic reduces the effectiveness of this tool.

Liability. The Navy has not adjusted its limitation on ship repair contractor liability for major losses since 2003. Inflation and the increased complexity and cost of ship maintenance mean that the limit is proportionally less than when established, placing increase financial risk on the government in the event of a loss, such as a major fire.

Why GAO Did This Study

Fire is a significant risk for Navy ships undergoing maintenance. A 2020 fire found to be caused by arson on board the USS Bonhomme Richard resulted in the ship's decommissioning, decades earlier than planned.

This report assesses (1) the extent to which Navy actions taken following the USS Bonhomme Richard fire addressed contractor compliance with fire safety standards, and (2) the Navy's use of various contracting tools for ensuring contractor accountability and compliance with fire safety standards.

GAO reviewed Navy actions based on lessons learned from the USS Bonhomme Richard fire. GAO also selected six nonnuclear surface ships undergoing major repair by four different contractors at four domestic maintenance centers, and analyzed Navy documentation of contractor compliance with fire safety standards. Additionally, GAO visited three regional maintenance centers and toured five ships.