In the spring of 1990, the NavSea Chief Engineer initiated a project to improve the design, acquisition and construction (DAC) of U.S. Navy ships. The project's objectives are to reduce the time and cost of acquiring and operating Navy ships while improving their quality, unlike previous studies on the subject, the project utilizes a rigorous process analysis approach and attempts to use quantitative measures as the basis for recommending improvements. The paper is, of necessity, a status report on the progress of this project. Topics covered include: the DAC process; a look at the current state of ship acquisition time, cost, and quality; the methodology for process improvements; and early findings.