Summary: The Navy spent $1.3 billion on overseas ship maintenance in fiscal years 1987-91. Almost 85 percent of all repairs were done at three Navy-run facilities. Overseas ship maintenance costs are declining, and the Navy projects that overseas costs will total $1.1 billion in fiscal years 1992-98. If the Japan-based ships were returned to U.S. shipyards for long-term planned maintenance, the ships could not meet existing operational requirements because Navy policies require ships to stay in their homeports twice as long as they have been deployed. In addition, the cost for long-term planned maintenance for the Yokosuka-based ships at U.S. shipyards would range from $211.7 million to $741.6 million more for fiscal years 1992-98. Japan's labor-cost-sharing agreement with the United States significantly lowers costs in Japan. Japan will fund 100 percent of the labor costs for U.S. ship repairs by 1996. The Navy lacks enough controls to ensure that its overseas maintenance process complies with statutory limitations on overseas maintenance of U.S. homeported ships. Further, the Navy has not incorporated the legislative limitations on overseas ship repairs into Navy policy and procedures.
