Navy ships undergo a variety of tests, trials, and construction after delivery from the shipbuilder (when the Navy takes custody of the ship) and before the Navy provides the ship to the fleet—a time referred to as the post-delivery period. The Navy’s policy for ship delivery is outlined in OPNAVINST 4700.8K, which establishes major milestones including the beginning (delivery) and end (OWLD) of the post-delivery period, the expected condition of ships and submarines at these milestones, procedures for executing the post-delivery period, and the responsibilities of various Navy organizations during the post- delivery period. Figure 1 provides a notional timeline of the delivery and post-delivery process for new construction ships, per the Navy’s ship delivery policy. Delivery (from shipbuilder): The Navy takes custody of a new construction ship from the shipbuilder at preliminary acceptance, which is also commonly known as delivery. Delivery occurs after the completion of acceptance trials, during which INSURV evaluates the ship and identifies deficiencies (we discuss INSURV’s role in more detail below). The Navy’s Supervisor of Shipbuilding, responsible for ship construction quality, signs a Material Inspection and Receiving Report (Form DD-250) at this time, which includes a list of outstanding construction deficiencies and incomplete work for which the contractor is responsible for completing based upon the terms of the contract. Delivery is the beginning of the post-delivery period. Guaranty period: A specified period of time after delivery during which the shipbuilder retains responsibility for correcting construction defects that arise on the ship after the Navy accepts delivery. The specific terms of the guaranty period, including its duration and who pays to correct deficiencies, are established in the shipbuilding construction contract. Final contract trials: INSURV inspectors conduct a second round of sea trials to determine if there are any defects, failures, or deterioration other than that due to normal wear and tear. Typically, these trials are held prior to the post-shakedown availability. Post-shakedown availability (PSA): A period of work toward the end of the post-delivery period, during which the Navy’s Supervisor of Shipbuilding and other organizations, as appropriate, oversee the correction of deficiencies, installation of class-wide upgrades, and completion of incomplete construction work. The duration and scope varies from ship to ship depending on its material condition at delivery and whether significant alterations must be implemented during the post- delivery period. OWLD: The date when full financial responsibility for maintaining and operating a ship is transferred from the acquisition command to the operational fleet. In this report, we refer to OWLD as when the ship is provided to the fleet; this date generally concludes the post-delivery period. In addition to these milestones and events that occur on all new Navy ships, Department of Defense (DOD) acquisition policy also calls for events that usually occur during the post-delivery period on one ship per class, typically the first (or lead) ship: Initial operational capability (IOC): A key milestone in weapon system acquisitions that typically refers to the point in time when the warfighter (in the Navy’s case, the operational fleet) has the ability to employ and maintain a new system. Operational Test and Evaluation: A period of testing to characterize the performance of a ship under realistic operational conditions during a discrete period of time. Testers may also use actual mission performance data and data from fleet exercises in making their assessments. In conducting operational testing, testers make a determination regarding the ship’s operational effectiveness and suitability: For operational effectiveness, testers determine whether or not a ship can perform its missions when operated by the ship’s crew. For operational suitability, testers determine whether or not the Navy can logistically support the ship in the field, with consideration given to interoperability, safety, and reliability, among other attributes. Interoperability measures the extent to which information systems and other equipment work with other Navy systems, and other U.S. government agencies, such as the Coast Guard. Reliability measures the probability that the system will perform without failure for a certain period of time and in certain conditions. The post-delivery period requires coordination between many of the Navy’s acquisition and fleet organizations. Figure 2 provides an overview of the organizations involved in the post-delivery period and how they fit together within the overall structure of the Navy. The Chief of Naval Operations (CNO) is the senior military officer of the Department of the Navy. Among other things, the CNO is responsible for determining when to accept delivery of ships from the shipbuilders. The Navy’s ship delivery policy, OPNAVINST 4700.8K, was written and is maintained by the Office of the CNO. Program Executive Offices (PEO) are responsible for all aspects of their assigned shipbuilding programs, including program initiation, ship design, construction, testing, delivery, fleet introduction, and maintenance activities. Responsibilities for managing the designing, building, and testing of new ships are assigned to a shipbuilding program office within the PEO. Program offices are responsible for implementing the Navy’s delivery and post-delivery process, as prescribed in the CNO’s ship delivery policy, OPNAVINST 4700.8K. Naval Sea System Command (NAVSEA) is responsible for engineering, building, buying, and maintaining ships, submarines, and combat systems to meet the fleet’s operational requirements. NAVSEA is organized by specialty, such as contracting, engineering, or quality assurance. INSURV inspects newly constructed and in-service Navy ships to assess and track the material condition of the Navy’s active fleet. For new construction ships, INSURV inspects prior to delivery (during acceptance trials) and again prior to the end of the guaranty period (during final contract trials). Commander, Operational Test and Evaluation Force conducts operational testing and serves as an independent evaluator of a ship’s capabilities and supportability. Its operational testing is overseen by DOD’s Director of Operational Test and Evaluation (DOT&E), who issues policy and procedures on operational testing, approves the adequacy of operational test plans, monitors and reviews all operational test and evaluation, and independently evaluates and reports test results. U.S. Fleet Forces Command and Pacific Fleet are the operational fleet forces of the Navy that assume full financial responsibility for operating and maintaining ships at the end of post-delivery. Fleet officials include port engineers, who are responsible for ship maintenance; ship managers, who oversee all aspects of maintaining and operating the ship; and senior crew members, such as the Commanding Officer and Chief Engineer, who are responsible for operating the ships. During the post- delivery period, key organizations within the fleet are the Type Commands and the ships’ crews. The Type Commands provide support during the post-delivery process and manage ship maintenance after ships are provided to the fleet. The ship’s crew begins operating the ship shortly before delivery from the shipbuilder or earlier for vessels that are nuclear-powered. Quality deficiencies are identified throughout the shipbuilding construction process. Navy program managers told us that they assess a ship’s quality and completeness using three primary metrics: (1) trial deficiency correction, (2) certification completion, and (3) casualty report correction. Trial Deficiencies: During acceptance and final contract trials, INSURV documents deficiencies, which are categorized according to their severity, as explained in table 1. The correction of INSURV-identified deficiencies could be the responsibility of the government or the shipbuilder, depending on the nature of the deficiency. If an INSURV deficiency is not resolved before delivery, the Navy usually aims to correct it during the post-delivery period. Certifications: NAVSEA guidance states that the certification process is a critical tool in the effort to ensure ship systems fully meet design specifications and operational standards. There are many different types of ship certifications, from potable water to combat systems. Some certifications are common to all ships, while others apply to specific vessels; for instance, only ships with the ability to deploy aircraft or helicopters require aviation certifications, while submarines require certifications to demonstrate the ability to dive safely. An incomplete certification indicates that required tests are incomplete or that a key system does not meet a specification or standard. The ship’s crew cannot operate particular systems or complete certain missions until certifications are complete, though certifications may be partially completed. For example, a Navy ship may have an interim aviation certification, which can mean that the ship’s crew can only conduct daytime operations or can fly but not maintain certain aircraft. Casualty reports: At or around delivery, the fleet begins operating the ship and may document any mechanical issues the crew encounters in casualty reports. These reports represent significant deficiencies to the pieces of equipment that contribute to the ship’s ability to perform its missions. Casualty reports demonstrate a deficiency but generally do not identify a cause. Causes could be related to construction defects, operator errors, or equipment malfunction. Category 3 and 4 casualty reports indicate degradation to critical mission capability that needs immediate repair, while category 2 reports contain issues that are important to the fleet but do not affect the ship’s core missions. The Navy completes a range of work during the post-delivery period that varies from ship to ship, but generally falls into three categories: Incomplete work is all work that was planned to be completed during construction, but was not accomplished. There are two primary types of incomplete work: 1. Deferred work is construction required by the shipbuilding contract but not completed prior to delivery. The Navy may shift completion of this work to the post-delivery period so it can take custody of the ship.