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Defense Acquisitions: Historical Analyses of Navy Ship Leases

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Report Type Reports and Testimonies
Report Date June 25, 1999
Report No. NSIAD-99-125
Subject
Summary:

The Navy recently proposed long-term leasing rather than outright purchase of 12 auxiliary dry cargo ships. Historically, the Navy has bought its combat ships and relied on long-term and short-term leases to acquire some auxiliary vessels for supply and other support functions. Although it now appears that the Navy will purchase the dry cargo ships, its still considers long-term leasing an alternative to buying auxiliary vessels. This report provides an historical analysis of the Navy's decisions to lease Sealift tankers, Maritime Prepositioning Ships, T-5 replacement tankers, and Chouest specialized support vessels. GAO (1) determines the basis and the support for the Navy's lease decisions, (2) reviews past concerns about those decisions, and (3) identifies legislative and regulatory changes that affect current and future leasing decisions. This report updates an April 1999 testimony before Congress. (See GAO/T-NSIAD-99-141.)

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