Ship Maintenance, Repair and Modernization

The Ship Maintenance, Repair and Modernization program, as outlined in Line Item 1000 of the Department of Defense (DoD) FY 2026 Navy budget, is a critical component of the Navy's effort to sustain and enhance the operational readiness of its fleet. This program is funded through the Other Procurement, Navy (OPN) appropriation and is focused on the procurement of private contracted maintenance, repair, and modernization services for both surface ships and submarines. The FY 2026 request supports these activities for the U.S. Pacific Fleet (CPF) and U.S. Fleet Forces Command (FFC), continuing the expansion of the program that began in FY 2020 and was broadened in subsequent years.

The primary goal of this line item is to ensure that Navy ships remain service ready by funding a wide range of depot-level maintenance and modernization availabilities at private shipyards within the continental United States (CONUS). By leveraging private sector capabilities, the Navy aims to implement commercial best practices, increase contract lead times, and provide flexibility to address emergent repair requirements. This approach also supports the Navy's A-120 contracting policy, which is designed to improve efficiency and fiscal discipline in maintenance execution.

A significant objective of the program is to provide stability and predictability to the ship repair industrial base, thereby strengthening industry partnerships and supporting the long-term health of the U.S. shipbuilding and repair sector. The program covers a variety of maintenance availabilities, including Carrier Incremental Availabilities (CIA), Docking Planned Incremental Availabilities (DPIA), Docking Selected Restricted Availabilities (DSRA), Engineered Overhauls (EOH), Engineered Refueling Overhauls (ERO), Major Maintenance Periods (MMP), Overhauls (OH), and various forms of Restricted and Technical Availabilities (RA/TA), among others.

U.S. Pacific Fleet Ship Maintenance funding supports a comprehensive list of ships, including aircraft carriers, amphibious assault ships, destroyers, cruisers, littoral combat ships, and support vessels. Each availability is tailored to the specific maintenance and modernization needs of the vessel, such as hull, mechanical, and electrical repairs, combat system upgrades, habitability improvements, and life-cycle extensions. The program also includes funding for emergent work and growth requirements that arise during the execution of maintenance contracts.

U.S. Fleet Forces Command Ship Maintenance receives a parallel allocation to address similar requirements for ships assigned to the Atlantic and other operational areas. This includes maintenance and modernization for a broad spectrum of ship classes, with specific availabilities planned for both surface ships and submarines. The program ensures that both surface and submarine fleets are maintained to established safety and combat capability standards.

An additional objective of the program is to align with broader government efficiency initiatives. The FY 2026 request reflects a reduction in funding for Advisory and Assistance Services, in accordance with Executive Order 14222, which seeks to promote cost efficiencies and advance administration policies. This adjustment demonstrates the Navy's commitment to fiscal responsibility while maintaining the core objectives of fleet readiness and modernization.