Shipbuilding is a very complex and politically motivated, labor-intensive industry. It is essential for the economic future of the country and a requirement for the United States Navy and the country's National Security. The whole shipbuilding concept is a system-oriented structure that is dependent on the auspices of the military designers for new technology and a solid way to combat worldwide threats. This paper will deal with the repair and modernization part of the ship system operation and utilization phase of the system life cycle. The system operation phase is by far the most expensive phase of the life cycle of the ship, comprising approximately 60 percent of the total life cycle cost of the ship. The cost of maintenance, repair, and modernization of the ship represents a good portion (approximately 35 percent) of the system operation costs during its life cycle. In order for this paper to facilitate the position for the use of Zone Logic as an alternative to the traditional system-by-system modernization of the existing U.S. Navy ships, a historical perspective, as well as a description of the alternative shipbuilding concepts and modernization techniques, are included. Finally, the qualitative benefits are shown and analysis of a recent test for Zone Logic on an LPH - 2 class ship is performed to show that Zone Logic is a valid concept for the use in ship modernization. The data used in the analysis portion of this paper were final return costs that were provided by the contractor to the Naval Sea Systems Command.