Current CR could delay five more ship maintenance contract awards

After already delaying two ship maintenance contracts in November, Navy officials today told Congress the current continuing resolution could delay five additional contract awards.

Navy acquisition executive Hondo Geurts and Naval Sea Systems Command chief Vice Adm. Thomas Moore said in joint written testimony today those contract awards "may be adversely impacted by the second CR," which expires Dec. 20.

Geurts and Moore appeared before the Senate Armed Services seapower and readiness subcommittees.

Geurts last month confirmed he already postponed awarding two maintenance contracts, one for the Arleigh Burke-class destroyer Gonzalez (DDG-66) and another for the Bainbridge (DDG-96).

Also testifying alongside Geurts and Moore is Diana Maurer, director of defense capabilities and management at the Government Accountability Office. Her agency last week published a report analyzing the Navy's $21 billion, 20-year plan to optimize the four public shipyards.

The government watchdog concluded the service's plans created "risks that together could add billions to the ultimate cost" of the plan, according to the report.

"Navy officials stated that they wanted to provide Navy leadership and congressional decision makers with a rough order-of-magnitude estimate, not a budget-ready cost estimate," GAO's report stated.

Geurts and Moore said the Navy is working to implement the watchdog’s recommendations to improve the cost estimate.