“I'm thrilled that we finally landed on the fact it's going to be nuclear," Adm. Daryl Caudle said.

Sources said recent personnel changes and reversal of a reorganization effort launched by Cao’s predecessor, John Phelan, have left some officials "in shock."

Cao made his first high-profile public address since he was elevated to acting SECNAV following a major leadership shakeup and ouster last week.

Phelan’s surprise exit comes a day after he delivered a keynote address at the Sea-Air-Space symposium, in which he touted plans for a next-generation battleship.

The effort is designed to “round up” outdated and vulnerable IT assets — and then reinvest funds into higher-priority platforms and pursuits.

The new undersecretary of the Navy has been given a wide-ranging portfolio.