The Navy's Program Executive Office for Ships (PEO/S) is sharpening its shipbuilding management strategy through a top-level appraisal of Navy and shipyard practices to meet higher expectations from Navy and DOD leadership and Congress. The office head, Rear Admiral Bill Landay, noted this is in part a response to criticism leveled two years ago by the three about cost overruns in the Littoral Combat Ship program, which led to termination of two LCS prototypes before the program was reorganized.
Landay points out that PEO/S works with some 25 to 30 shipyards nationwide: Tier 1 yards build surface combatants and amphibious assault ships, Tier 2 builds smaller ships, and Tier 3 yards build even smaller special-use craft. Currently the Navy is building 20 major surface combatants in seven yards and about 190 small boats and craft, a total that will rise to about 250 by late 2010.
The PEO says that rethinking the fundamentals of shipbuilding aims at three big areas: first, "getting the program right up front"; second, program execution; and third, affordability.