Wait a minute, someone pinch me or correct me if I read this all wrong. Someone suggested that to fix the program, they turn it over to the officers? And then threaten everyone? No one could possibly really believe that is the solution, so I am going to go with the thought that that must have been said tongue in cheek.

I agree with Mike. The solution is for the Navy to emulate the commercial industry, and not say stupid things like "the commercial industry strives to be like the Navy." Like he said, the min standard is 3.2, with questions asked at 3.4, and in order to be certain you are going to make it, an 87 or 3.48. You get made fun of less than a 90, or a 3.60 and people start to consider you a slacker at <95. All the while, standards and expectations get raised to a higher level with each new generation of operators. This is part of the reason I don't mind living within the 10 mile zone of my plant.

Then again, the standards of Navy operators isn't really the question of this thread. This thread deals with exam security. As far as I remember, there wasn't any real exam security in the Navy. So yet again, I suggest the Navy benchmark the commercial industry in this respect, it could learn a lot.
Then again, it kind of does go back to the unreasonable expectations set forth by the senior officers in the Navy (ie pass/fail rate, etc). So that would need addressed first. I think you should simplify things and make super hard exams, that everyone has to pass, period. Stop expecting failures. When you really think about it, that is stupid. Then, with your new super hard exams, learn to control them, but I really don't have any ideas how to do that right now due to the reason below.
Apparently, the possibility of mast isn't a deterrent to cheating, so maybe something more drastic is in order. I know the consequences of cheating in the commercial world are severe, just short of public execution. Its hard to say what the Navy can do in this regard, without going overboard. Then again, what price do you put on exam security? Should be steep I would think.
Its a tough problem with no clear solution. I certainly don't envy those that have to work within such a damaged system.