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US Navy Faces AMDR Storage Costs Due to Shipbuilding Delays

July 3, 2026

2 min read

Key Takeaways

US Navy storing AMDR radar equipment due to shipbuilding delays.
Radar production outpaces ship construction.
Storage costs estimated at $1.6 million per year through 2030.
Programme acquisition cost increased by 15%.

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Strategic Implications

The mismatch between radar production and ship construction may indicate challenges in the US Navy's procurement and installation processes. This could suggest a need for more efficient project management and coordination between different branches of the military, which may impact the overall effectiveness of the AMDR programme.

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What Happened

Radar Production Outpaces Warship Construction Amid Rising Costs

The US Navy is facing storage costs for its AMDR radar equipment due to delays in shipbuilding construction, according to a recent US Government Accountability Office (GAO) report. The GAO noted that radar production is outpacing ship production, resulting in the need to store some delivered radars until ships become available for installation. The programme has established a government-secure facility to store the equipment, with estimated storage costs of $1.6 million per year through 2030. The current estimated overall programme acquisition cost is about $20.1 billion, a 15% increase from the previous estimate, as reported by Janes.

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