    Coast Guard: Condition of Some Aids-to-Navigation and Domestic
    Icebreaking Vessels Has Declined; Effect on Mission Performance
    Appears Mixed (22-SEP-06, GAO-06-979).

    The marine transportation system is a critical part of the
    nation's infrastructure. To facilitate the safety and efficiency
    of this system, the Coast Guard maintains aids-to-navigation
    (ATON), such as buoys and beacons, and conducts domestic
    icebreaking in the Great Lakes, St. Lawrence Seaway, and
    northeast coast. To conduct these missions, the Coast Guard has a
    fleet of more than 200 vessels, ranging from 225-foot seagoing
    buoy tenders and 140-foot domestic icebreakers to 21-foot boats.
    After the terrorist attacks of September 11, 2001, many of these
    assets took on additional responsibilities for security patrols
    and other homeland security duties. Although some assets have
    been recently acquired, many others are reaching or have exceeded
    their design service lives, raising concerns about how well and
    for how much longer these older assets may be able to carry out
    their missions. In response, GAO examined (1) recent trends in
    the amount of time these assets have spent performing missions;
    (2) asset condition and its effect on mission performance; and
    (3) the actions taken by the Coast Guard to continue to achieve
    the missions of these assets. To conduct this work, GAO reviewed
    Coast Guard documents, interviewed Coast Guard officials, and
    made site visits to various locations around the country. In
    commenting on a draft of this report, the Coast Guard provided
    technical comments, which were incorporated as appropriate.
    -------------------------Indexing Terms-------------------------
    REPORTNUM:   GAO-06-979
        ACCNO:   A61324
      TITLE:     Coast Guard: Condition of Some Aids-to-Navigation and
    Domestic Icebreaking Vessels Has Declined; Effect on Mission
    Performance Appears Mixed
         DATE:   09/22/2006
      SUBJECT:   Assets
    	     Coastal zone management
    	     Cost analysis
    	     Equipment maintenance
    	     Equipment management
    	     Homeland security
    	     Maintenance costs
    	     Navigation aids
    	     Performance measures
    	     Ships
    	     Waterways
    	     Icebreakers
    	     Coast Guard Aids to Navigation Program

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    GAO-06-979

         * Results in Brief
         * Background
              * Aids-to-Navigation Mission
              * Domestic Icebreaking Mission
         * Icebreaking and ATON Assets Show Significant Increases in Ti
              * Domestic Icebreakers Show the Largest Increase in Time Spent
              * Increase in Homeland Security Missions Is Less Extensive for
         * Available Evidence Indicates Condition of Assets Varies Grea
              * Current Condition Measure Is Limited and Does Not Show a Cle
              * Increasing Maintenance Costs Indicate Possible Condition Iss
              * Evidence Gathered from Interviews, Site Visits, and Other Re
              * Performance Indicators for Icebreaking and ATON Missions Sho
         * To Continue to Achieve the Missions of Its ATON and Domestic
              * Actions Have Been Taken to Manage Assets and Acquire Some Ne
                   * Coast Guard Is Developing a More Robust Condition Measure
                   * Coast Guard Is Implementing New Approaches to Manage ATON Bo
                   * Coast Guard Is Developing a Tool to Better Prioritize Upgrad
                   * Coast Guard Acquired Some New Assets
              * Additional Proposals to Rehabilitate or Replace Aging Assets
              * Study Identified Outsourcing Possibilities but May Face Disa
         * Concluding Observations
         * Agency Comments
         * Condition Measure for ATON and Domestic Icebreaking Cutters
         * Condition Measure for ATON Boats
         * Maintenance Trends
         * GAO Contact
         * Acknowledgments
         * GAO's Mission
         * Obtaining Copies of GAO Reports and Testimony
              * Order by Mail or Phone
         * To Report Fraud, Waste, and Abuse in Federal Programs
         * Congressional Relations
         * Public Affairs

    Report to the Subcommittee on Fisheries and Coast Guard, Committee on
    Commerce, Science, and Transportation, U.S. Senate

    United States Government Accountability Office

    GAO

    September 2006

    COAST GUARD

    Condition of Some Aids-to-Navigation and Domestic Icebreaking Vessels Has
    Declined; Effect on Mission Performance Appears Mixed

    GAO-06-979

    Contents

    Letter 1

    Results in Brief 3
    Background 6
    Icebreaking and ATON Assets Show Significant Increases in Time Spent on
    Homeland Security Missions since 2001 11
    Available Evidence Indicates Condition of Assets Varies Greatly and Mixed
    Impact on Mission Performance 17
    To Continue to Achieve the Missions of Its ATON and Domestic Icebreaking
    Assets, the Coast Guard Has Taken Actions, Made Proposals, and Studied
    Outsourcing Possibilities 28
    Concluding Observations 37
    Agency Comments 39
    Appendix I Objectives, Scope, and Methodology 40
    Appendix II Mission Resource Hours of ATON and Domestic Icebreaking
    Assets, Fiscal Years 2001 to 2005 42
    Appendix III Condition Measure of ATON and Domestic Icebreaking Assets,
    Fiscal Years 2000 to 2005 48
    Appendix IV Maintenance Trends of ATON Cutter and Domestic Icebreaking
    Assets, Fiscal Years 2001 to 2005 51
    Appendix V GAO Contact and Staff Acknowledgments 53
    Related GAO Products 54

    Tables

    Table 1: Homeland Security and Non-Homeland Security Programs by Mission
    Area 6
    Table 2: Aids-to-Navigation Assets 9
    Table 3: Domestic Icebreaking Assets 11
    Table 4: Comparison of Features of the 87-foot Patrol Boats and Domestic
    Icebreakers 15
    Table 5: Condition of Domestic Icebreakers and ATON Cutters as Measured by
    Coast Guard's Standard of 72 Percent or More of Time Free of Major
    Casualties, Fiscal Years 2000 through 2004 18
    Table 6: Availability of Navigational Aids, Fiscal Years 2001 through 2005
    27
    Table 7: Approaches to Replace or Rehabilitate ATON and Domestic
    Icebreaking Assets under the Integrated ATON Platform Modernization
    Project 34
    Table 8: Resource Hour Usage and Percent, by Asset Type and Mission
    Program, Fiscal Years 2001 through 2005 42
    Table 9: Percent of Time Free of Major Casualties for ATON and Domestic
    Icebreaking Cutters, Fiscal Years 2000 through 2004 48
    Table 10: Condition of ATON Boats as Evidenced by POTF and Internal Coast
    Guard Assessment 50
    Table 11: Maintenance Costs for ATON Cutters and Domestic Icebreakers,
    Fiscal Years 2001 through 2005 51

    Figures

    Figure 1: Examples of a Buoy and a Fixed Aid-to-Navigation 8
    Figure 2: Resource Hours for Domestic Icebreakers, Fiscal Years 2001
    through 2005 13
    Figure 3: Resource Hours for ATON Assets, Fiscal Years 2001 through 2005
    16
    Figure 4: Domestic Icebreaking Maintenance Cost Trends, Fiscal Years 2001
    through 2005 21
    Figure 5: ATON Cutter Maintenance Cost Trends, Fiscal Years 2001 through
    2005 22
    Figure 6: Antiquated Circuit Card Rack, Which Serves as Part of the Main
    Propulsion Control System, on the 140-foot Icebreaking Tug 23
    Figure 7: Average Number of Collisions, Allisions, and Groundings, Fiscal
    Years 2001 through 2005 26
    Figure 8: Chain-in Haul Winch 32

    Abbreviations

    AOPS Abstract of Operations ATON Aids-to-Navigation CAMS Capital Asset
    Management Strategy DOD Department of Defense ELC Engineering Logistic
    Center OMB Office of Management and Budget POTF Percent of Time Free of
    major casualties PWCS Ports, Waterways and Coastal Security SSMEB ship
    structure and machinery evaluation boards

    This is a work of the U.S. government and is not subject to copyright
    protection in the United States. It may be reproduced and distributed in
    its entirety without further permission from GAO. However, because this
    work may contain copyrighted images or other material, permission from the
    copyright holder may be necessary if you wish to reproduce this material
    separately.

    United States Government Accountability Office

    Washington, DC 20548

    September 22, 2006 September 22, 2006

    The Honorable Olympia Snowe Chair The Honorable Maria Cantwell Ranking
    Minority Member Subcommittee on Fisheries and Coast Guard, Committee on
    Commerce, Science and Transportation United States Senate The Honorable
    Olympia Snowe Chair The Honorable Maria Cantwell Ranking Minority Member
    Subcommittee on Fisheries and Coast Guard, Committee on Commerce, Science
    and Transportation United States Senate

    The marine transportation system, which allows for the transportation of
    people and goods on the water, is a vast and critical part of the nation's
    infrastructure. The system includes coastal ports and shipping channels;
    25,000 miles of navigable inland and coastal channels and waterways like
    the Mississippi, St. Lawrence, Columbia and Snake rivers; and shipping on
    the Great Lakes. Ninety-five percent of the United States' overseas trade
    tonnage moves by water, and the cargo moving through the U.S. marine
    transportation system contributes hundreds of billions of dollars to the
    U.S. gross domestic product. This system also enables the swift
    mobilization and supply of America's military as well as providing
    recreational value to millions of boaters, fishermen, and cruise
    passengers. The marine transportation system, which allows for the
    transportation of people and goods on the water, is a vast and critical
    part of the nation's infrastructure. The system includes coastal ports and
    shipping channels; 25,000 miles of navigable inland and coastal channels
    and waterways like the Mississippi, St. Lawrence, Columbia and Snake
    rivers; and shipping on the Great Lakes. Ninety-five percent of the United
    States' overseas trade tonnage moves by water, and the cargo moving
    through the U.S. marine transportation system contributes hundreds of
    billions of dollars to the U.S. gross domestic product. This system also
    enables the swift mobilization and supply of America's military as well as
    providing recreational value to millions of boaters, fishermen, and cruise
    passengers.

    The Coast Guard is responsible for, among other things, providing a safe,
    efficient, and navigable waterway system, and it carries out this role
    through its aids-to-navigation (ATON) and domestic icebreaking missions.
    In its ATON mission, the Coast Guard establishes and maintains over 53,000
    navigational aids, such as buoys and beacons, to assist mariners and
    prevent disasters, collisions, or wrecks. To carry out this mission, the
    Coast Guard uses a diverse fleet of more than 200 vessels ranging from
    225-foot buoy tenders to 21-foot boats that can be transported on trailers
    by truck. In its domestic icebreaking mission, the Coast Guard breaks ice
    in the Great Lakes, the St. Lawrence Seaway, and the northeast U.S.
    coast.1 This activity is intended to facilitate navigation for commerce,
    conduct search and rescue missions, and prevent flooding. To carry out
    this The Coast Guard is responsible for, among other things, providing a
    safe, efficient, and navigable waterway system, and it carries out this
    role through its aids-to-navigation (ATON) and domestic icebreaking
    missions. In its ATON mission, the Coast Guard establishes and maintains
    over 53,000 navigational aids, such as buoys and beacons, to assist
    mariners and prevent disasters, collisions, or wrecks. To carry out this
    mission, the Coast Guard uses a diverse fleet of more than 200 vessels
    ranging from 225-foot buoy tenders to 21-foot boats that can be
    transported on trailers by truck. In its domestic icebreaking mission, the
    Coast Guard breaks ice in the Great Lakes, the St. Lawrence Seaway, and
    the northeast U.S. coast.12 This activity is intended to facilitate
    navigation for commerce, conduct search and rescue missions, and prevent
    flooding. To carry out this mission, the Coast Guard largely relies on 11
    65-foot and 9 140-foot icebreaking cutters.

    1 The Coast Guard is also responsible for operating and maintaining the
    nation's fleet of polar icebreakers. We did not examine those polar
    icebreaking assets as part of this review.

    While some of these vessels have come on line in the past few years, many
    are old and are reaching or have exceeded their designed service lives.
    Their age has raised concerns within the Coast Guard as to how well and
    for how much longer they will be able to carry out their missions. In
    addition, after the terrorist attacks of September 11, 2001, many ATON and
    icebreaking vessels took on additional responsibilities for security
    patrols and other homeland security activities. In this context, this
    report examines (1) the recent trends in the amount of time ATON and
    domestic icebreaking assets have spent performing various missions and the
    impact of these trends on their primary missions; (2) the condition of the
    ATON and domestic icebreaking assets and the impact of their condition on
    performing their primary missions; and (3) the actions the Coast Guard has
    taken to continue to achieve the missions of its ATON and domestic
    icebreaking assets.

    To address the first two objectives, we analyzed a variety of Coast Guard
    data and records, focusing on fiscal years 2001 through 2005. We also made
    site visits to assets located on the West and East Coasts, Gulf Coast,
    Great Lakes, and inland rivers and met with the assets' crews to obtain
    their views on the condition of their assets. These assets were selected
    to provide diversity in terms of type, age of asset, and geographic
    location. To address the third objective, we met with Coast Guard
    officials at headquarters to discuss recent acquisitions and specific
    management actions they have taken or are in the process of taking. We
    also obtained and reviewed information and documents on the Coast Guard's
    plans to rehabilitate or replace the assets or study outsourcing to carry
    out missions. More details on our scope and methodology can be found in
    appendix I of this report. We conducted our work between July 2005 and
    August 2006 in accordance with generally accepted government auditing
    standards.

    2 The Coast Guard defines a cutter as any Coast Guard vessel 65 feet in
    length or greater, having adequate accommodations for crew to live on
    board. Boats are defined as those vessels under 65 feet in length that
    usually operate near shore and on inland waterways.

                                    Results in Brief

    Many of the Coast Guard's ATON vessels and domestic icebreakers saw a
    sharp increase in use for homeland security missions after the attacks of
    September 11, 2001, and while this trend has moderated somewhat, the use
    of some assets in these missions continues well above pre-September 11
    levels. This increase was most prominent for domestic icebreakers, which
    continue to be used more for homeland security than for icebreaking.
    Rather than being diverted from icebreaking activities when needed for
    this mission, these icebreakers are basically being operated more
    extensively at other times of the year when no icebreaking needs to be
    done. In some cases, this more extensive use has caused some assets to be
    operated at levels exceeding the recommended levels. Coast Guard officials
    said that while these icebreakers are not specifically designed for
    security patrols and other homeland security activities, they can perform
    such duties acceptably, though at less than optimal levels. In contrast to
    the icebreakers, most ATON vessels continue to be used primarily for ATON
    activities, reflecting the greater year-round nature of ATON activity.
    ATON vessels have devoted additional hours to other missions and this
    reflects primarily an overall increase in the number of hours the ATON
    vessels are used, especially the larger assets. Newer ATON vessels, which
    generally have greater multiple-mission capabilities than older ATON
    vessels, tend to be the ATON assets used the most for other missions.

    Available evidence shows mixed trends with regard to both the condition of
    these assets and the impact this condition has on the Coast Guard's
    ability to perform its ATON and domestic icebreaking missions. The Coast
    Guard's current measure of a vessel's condition-the percentage of time it
    is free of major casualties-is inadequate to link the assets' condition to
    any degradation in mission capabilities or performance and, therefore, may
    reflect a more positive condition. The Coast Guard is currently working on
    a new measure that should better link condition with mission degradation.
    Other evidence, such as the amount of maintenance conducted and anecdotal
    evidence we gathered, suggests that as these assets continue to age, their
    condition is declining, though not precipitously. For example, according
    to a program official who previously served as a commanding officer on an
    icebreaker, stated that the decline in condition of those assets has not
    been beyond what would be expected of assets 20 years or more of age. Our
    site visits showed that, on these older assets, crew members are spending
    increasing amounts of time and resources to troubleshoot and resolve
    maintenance issues. They indicated that because the systems and parts are
    outdated compared with the technology and equipment available today, it
    can be challenging and time consuming to diagnose a maintenance issue and
    find parts or determine what corrective action to take. For example, the
    propulsion control system on the 140-foot icebreaking tugs uses circuit
    cards that are no longer manufactured and have been superseded by computer
    control systems. While some assets are being operated more extensively
    than in the past to meet additional responsibilities, particularly
    homeland security, Coast Guard officials said that overages can have an
    impact on some assets, especially those with more complex systems and
    subsystems. The officials said that exceeding planned usage limits may
    leave less time to maintain these systems. They said that the
    deterioration of an asset and its systems from usage consistently above
    the limits would be reflected in periodic engineering assessments of the
    assets. Against this backdrop, performance indicators for the two missions
    show mixed results. A milder winter in 2005 may have contributed to the
    Coast Guard's ability to meet its primary domestic icebreaking performance
    target, which aims for limiting the number of days critical waterways are
    closed due to ice to 2 days during average winters. For the ATON mission,
    the main performance measure (the number of collisions, allisions, and
    groundings) has been declining for the past 5 years, indicating continual
    improvement, while a secondary measure (the percentage of time an
    aid-to-navigation system is performing) has been declining over the same
    period-a negative trend.3 In previous work, we found that many other
    factors, such as severity of weather, also affected outcome on performance
    measures.

    To continue to achieve the missions of its ATON and domestic icebreaking
    assets, the Coast Guard has taken a number of actions to develop program
    management tools or acquire new assets, made proposals to address aging
    assets, and conducted a study of what makes the best business case for
    outsourcing:

               o  Actions taken or underway include developing a better measure
               for linking an asset's condition and its ability to carry out
               missions, a revised maintenance approach for newer assets, and a
               centralized system for tracking the condition and maintenance of
               smaller ATON boats. In addition, to better link asset conditions
               and funding decisions, the Coast Guard has developed a
               benefit-cost analysis tool to analyze the trade-offs involved in
               upgrading assets or continuing to maintain them, thereby helping
               the Coast Guard decide on the combinations of projects that will
               provide the most capability for the dollars invested. The Coast
               Guard has also acquired some newer assets: in 2004, it acquired
               the last of 30 new buoy tenders to replace older coastal and
               seagoing buoy tenders and in 2005, and it acquired a new
               icebreaker for the Great Lakes. These acquisitions have brought
               improved features to the fleet, such as computerized systems for
               positioning and propulsion control, enhanced multimission
               capabilities, and improved equipment for servicing navigation
               aids.

               o  Proposals made include steps to address the remaining aging
               assets, but these steps have not been implemented, largely because
               of other funding priorities. To determine whether to rehabilitate
               or replace assets, Coast Guard officials stated that they use a
               process that considers things such as the condition of the assets
               and trends in maintenance costs. In 2002, the Coast Guard proposed
               a project to systematically rehabilitate or replace its other
               aging ATON and domestic icebreaking assets. Requests for funding
               this project have been denied or deferred by the Department of
               Homeland Security or the Office of Management and Budget since
               fiscal year 2004, apparently due to competition for limited
               resources with other Coast Guard initiatives, such as the
               Deepwater project for replacing cutters and aircraft used far out
               at sea. As a result, parts of the project have been separated into
               smaller components with lower funding requirements. For example,
               in 2006, the Coast Guard began acquiring new trailerable ATON
               boats to replace 80 boats currently in use. Of these smaller
               components, only this new boat acquisition has received funding.

               o  The study conducted looked at what activities make the best
               business case for being outsourced to the private sector. While
               recognizing that, at the time of the study some ATON activities
               were being contracted to commercial sources on a limited basis,
               the study suggested that some asset classes related to the Coast
               Guard's ATON activities might be outsourced and merited further
               examination. However, according to the Coast Guard, potential
               disadvantages to outsourcing exist such as reduction of the Coast
               Guard's capacity to respond to hurricanes and other emergencies
               and disruption of the Coast Guard's personnel structure and
               ability to attract and retain personnel.

    3 An allision is a collision between a vessel against a fixed or
    stationary object.

    We provided a draft copy of this report to the Department of Homeland
    Security and the Coast Guard for review. The Coast Guard provided
    technical comments, which have been incorporated where appropriate.

                                       Background

    The US Coast Guard is a multimission, maritime military service within the
    Department of Homeland Security. The Coast Guard has responsibilities that
    fall under two broad missions-homeland security and non-homeland
    security.4 (See table 1.)

    Table 1: Homeland Security and Non-Homeland Security Programs by Mission
    Area

    Mission and program            Activities and functions of each program
    Homeland security missions
    Ports, waterways, and coastal  Conducting harbor patrols, vulnerability
    security                       assessments, intelligence gathering and
                                      analysis, and other activities to prevent
                                      terrorist attacks and minimize the damage
                                      form attacks that occur.
    Undocumented migrant           Deploying cutters and aircraft to reduce
    interdiction                   the flow of undocumented migrants entering
                                      the United States by maritime routes.
    Defense readiness              Participating with the Department of
                                      Defense (DOD) in global military
                                      operations, deploying cutters and other
                                      boats in and around harbors to protect DOD
                                      force mobilization operations.
    Illegal drug interdiction      Deploying cutters and aircraft in high drug
                                      trafficking areas and gathering
                                      intelligence to reduce the flow of illegal
                                      drugs through maritime transit routes.
    Other law enforcement (foreign Protecting US fishing grounds by ensuring
    fish enforcement)              that foreign fishermen do not illegally
                                      harvest US fish stocks.
    Non-homeland security missions
    Search and rescue              Operating multi-mission stations, and a
                                      national distress and response
                                      communication system, conducting search and
                                      rescue operations for mariners in distress.
    Living marine resources        Enforcing domestic fishing laws and
                                      regulations through inspections and fishery
                                      patrols.
    Aids-to-navigation             Managing US waterways and providing a safe,
                                      efficient and navigable marine
                                      transportation system; maintaining the
                                      extensive system of navigation aids;
                                      monitoring marine traffic through vessel
                                      traffic service centers.
    Ice operations                 Conducting polar operations to facilitate
                                      the movement of critical goods and
                                      personnel in support of scientific and
                                      national security activity; conducting
                                      domestic icebreaking operations to
                                      facilitate year-round commerce; conducting
                                      international ice operations to track
                                      icebergs below the 48th north latitude.
    Marine environmental           Preventing and responding to marine oil and
    protection                     chemical spills; preventing the illegal
                                      dumping of plastics and garbage in US
                                      waters; preventing biological invasions by
                                      aquatic nuisance species.
    Marine safety                  Setting standards and conducting vessel
                                      inspections to better ensure the safety of
                                      passengers and crew aboard commercial
                                      vessels; partnering with states and boating
                                      safety organizations to reduce recreational
                                      boating deaths.

    Source: Coast Guard.

    4 The Coast Guard's homeland security and non-homeland security missions
    are delineated in section 888 of the Homeland Security Act of 2002 (P. L.
    107-296, 116 Stat. 2135, 2249 (2002)). Starting with the fiscal year 2007
    budget, however, OMB has designated the Coast Guard's drug interdiction
    and other law enforcement programs as non-homeland security missions for
    budgetary purposes.

    One of the Coast Guard's strategic goals is maritime mobility, that is, to
    facilitate maritime commerce, eliminate interruptions and impediments to
    the movement of goods and people, and maximize access to and enjoyment of
    the water. The two non-homeland security missions through which the Coast
    Guard achieves this goal are aids-to-navigation (ATON) and domestic
    icebreaking, which is part of ice operations.

    Aids-to-Navigation Mission

    Through its ATON mission, the Coast Guard promotes safe waterways and an
    efficient Marine Transportation System. The Coast Guard has statutory
    responsibility to operate and maintain a system of maritime aids to
    facilitate navigation and to prevent disasters, collisions, and wrecks.5
    To fulfill this mission, the Coast Guard operates over 53,000 aids. These
    aids-to-navigation are like road signs of the waterways and are placed
    along coasts and navigable waters as guides to mark safe water and to
    assist mariners in determining their position in relation to land and
    hidden dangers. These aids consist of both floating aids, such as buoys,
    and fixed aids, such as lights or signs mounted on pilings. See figure 1
    for an example of a buoy and fixed aid-to-navigation.

    5 The Coast Guard's statutory aids-to-navigation authorities include, for
    example, 14 U.S.C. S: 2, and 14 U.S.C. S: 81.

    Figure 1: Examples of a Buoy and a Fixed Aid-to-Navigation

    The Coast Guard uses several types of vessels to place and service its
    aids- to-navigation such as buoy tenders, construction tenders, and boats
    that make up its ATON fleet. These vessels are used to perform both
    periodic routine maintenance of aids and discrepancy response, when, for
    example, a light is extinguished or a buoy is moved from its intended
    location. The assets are shown in table 2.

    Table 2: Aids-to-Navigation Assets

                               Number of                                 Asset
    Asset type                 assets Asset description             photograph
    225-foot seagoing buoy     16     The seagoing buoy tenders
    tenders                           service and maintain coastal
                                         and offshore aids to
                                         navigation in exposed
                                         locations. They have a crew
                                         size of 40 to 48, a maximum
                                         speed of 15 knots and a range
                                         of 6,000 nautical miles. They
                                         have a lifting capacity of 20
                                         tons and a cargo capacity of
                                         75 tons. These tenders were
                                         commissioned between 1996 and
                                         2004.
    175-foot coastal buoy      14     The coastal buoy tenders
    tenders                           service and maintain coastal
                                         and offshore aids to
                                         navigation. They have a
                                         planned crew size of 19 to 26
                                         and a maximum speed of 13
                                         knots. They have a lifting
                                         capacity of 10 tons and a
                                         cargo capacity of 40 tons.
                                         These tenders were
                                         commissioned between 1997 and
                                         2000.
    160-foot/ 100-foot/        13     The inland construction
    75-foot inland                    tenders construct, maintain,
    construction tenders              and remove aids to navigation
                                         along the Intra-coastal
                                         waterway system. They have a
                                         planned crew size of 13 to
                                         14, a maximum speed of 9 to
                                         11 knots, and a range of
                                         1,300-5,350 nautical miles.
                                         The 100-foot and 75-foot
                                         tenders push construction
                                         barges. These tenders were
                                         commissioned between 1944 and
                                         1976.
    75-foot/ 65-foot river     18     The river tenders push
    buoy tenders                      90-foot to 130-foot barges
                                         and maintain short-range aids
                                         to navigation in the
                                         Mississippi River, its
                                         tributaries, and other rivers
                                         that flow into the Gulf of
                                         Mexico. They have a crew size
                                         of 12 to 13, a maximum speed
                                         of 9 to 11 knots, and an
                                         operating range of 3,000 to
                                         3,500 nautical miles. These
                                         tenders were commissioned
                                         between 1960 and 1990.
    100-foot/ 65-foot          15     The inland buoy tenders
    inland buoy tenders               service and maintain aids to
                                         navigation in remote
                                         waterways far from readily
                                         accessible logistics support.
                                         They have a planned crew size
                                         of 8 to 18, a maximum speed
                                         of 9 to 10 knots, and an
                                         operating range of 600-1,200
                                         nautical miles. The 100-foot
                                         cutters have a lifting
                                         capacity of 5 tons and a
                                         cargo capacity of 56,000 lbs.
                                         The 65-foot cutter has a
                                         lifting capacity of 2 tons
                                         and a cargo capacity of
                                         13,500 lbs. These tenders
                                         were commissioned between
                                         1944 and 1963.
    72-foot cable laying       11     The cable boat maintains
    boat                              shore power to offshore aids
                                         to navigation that cannot be
                                         powered by solar means. It
                                         has a planned crew size of 4,
                                         a maximum speed of 11 knots,
                                         and an operating range of up
                                         to 225 nautical miles. It has
                                         a cargo capacity of 20,000
                                         lbs. This boat was
                                         commissioned in 1953.
    64-foot aids-              13     The 64-foot boats conduct
    to-navigation boats               aids to navigation work on
                                         the inland rivers. They have
                                         a planned crew size of four,
                                         a maximum speed of 9 knots,
                                         an operating range of 500
                                         nautical miles, and a lifting
                                         capacity of 4,500lbs. The
                                         cargo capacity of these
                                         vessels is 30,000 lbs. These
                                         vessels were built in 1995.
    63-foot aids-              11     The 63-foot boat is designed
    to-navigation boats               to work small floating aids
                                         to navigation. It has a
                                         planned crew size of six, a
                                         maximum speed of 15 knots,
                                         and an operating range of 300
                                         nautical miles. It also has a
                                         lifting capacity of 14,000
                                         lbs and a cargo capacity of
                                         16,000 lbs. This asset was
                                         constructed in 1975.
                               Number of                                 Asset
    Asset type                 assets Asset description             photograph
    55-foot aids-              20     The 55-foot boats service
    to-navigation boats               small buoys and service fixed
                                         structures. They have a
                                         planned crew size of 4, a
                                         maximum speed of 21.5 knots,
                                         and an operating range of 175
                                         nautical miles. They have a
                                         lifting capacity of
                                         2,000/3,000 lbs and a cargo
                                         capacity of 8,000 lbs. These
                                         vessels were constructed from
                                         1977 to 1988.
    49-foot buoy stern         26     The 49-foot boats service
    loading boats                     buoys on the intra-coastal
                                         waterway and in coastal
                                         areas. They have a planned
                                         crew size of four, a maximum
                                         speed of 10 knots, an
                                         operating range of 300
                                         nautical miles, and a lifting
                                         capacity of 4,500 lbs. The
                                         last boat in this fleet
                                         completed construction in
                                         2001.
    45-foot buoy boats         12     The 45-foot boats service
                                         buoys have a planned crew
                                         size of 4, maximum speed of
                                         8.5 knots, and an operating
                                         range of 550 nautical miles.
                                         They have a lifting capacity
                                         of 4,000 lbs and a cargo
                                         capacity of 20,800lbs. These
                                         assets have been in service
                                         since the 1950s.
    21-foot trailerable        80     The 21-foot boats are used to
    aids-to-navigation boat           provide discrepancy response
                                         in semi-exposed and protected
                                         waters and to service many of
                                         the aids located in shallow
                                         water. They have a planned
                                         crew size of 3 and a maximum
                                         speed of 20 knots. They have
                                         a lifting capacity of 250 lbs
                                         and a cargo capacity of 3,500
                                         lbs. These boats were built
                                         from 1980 to 1992, have an
                                         average age of 10-22 years,
                                         and have exceeded their
                                         original estimated service
                                         life of 5 to 7 years.

    Source: Developed by GAO from Coast Guard data. Photographs of the 21-foot
    trailerable aids to navigation boat and inland construction tender are by
    GAO. All other photographs are courtesy of the Coast Guard.

    Domestic Icebreaking Mission

    Domestic icebreaking is a key component of the Coast Guard's ice
    operations mission, which facilitates the safe and efficient navigation on
    lakes, rivers, channels, and harbors during the winter season. The Coast
    Guard has statutory icebreaking responsibilities that are additionally
    addressed by an executive order that directs the Coast Guard to break ice
    in channels and harbors in order to keep them open to navigation.6 Like
    plowing snow-covered roads, the Coast Guard keeps areas of water open as
    much as is reasonably possible for commercial traffic in winter. It also
    performs icebreaking for search and rescue and prevention of flooding by
    ice. To conduct this mission, the Coast Guard uses assets that are
    specially designed with strengthened hulls. The key icebreaker types the
    Coast Guard uses are shown in table 3.

    6 14 U.S.C. S: 2; Exec. Order No. 7521, 1 Fed. Reg. 2184 (1936).

    Table 3: Domestic Icebreaking Assets

                        Number of                                        Asset
    Asset type        assets   Asset description                    photograph
    140-foot            19     The icebreaking tugs are specially
    icebreaking tugs           configured for breaking ice on the
                                  Great Lakes, rivers, and coastal
                                  waters, and support aids to
                                  navigation. They have a crew size of
                                  17 to 27, a maximum speed of 14.7
                                  knots and an operating range of
                                  4,000 nautical miles. Two of these
                                  assets are augmented by a 120-foot
                                  ATON barge and perform mostly ATON
                                  mission activities. These vessels
                                  were commissioned between 1979 and
                                  1988.
    65-foot small       11     The small harbor tugs perform
    harbor tugs                shallow water icebreaking services
                                  and maintain short-range ATON in
                                  rivers and near-shore areas. They
                                  also perform port security and
                                  search and rescue missions. They
                                  have a planned crew size of 6, a
                                  maximum speed of 10 knots, and an
                                  operating range of 850 nautical
                                  miles. These vessels were built
                                  between 1962 and 1967.

    Source: Developed by GAO from Coast Guard data. Photographs are courtesy
    of the Coast Guard.

    Note: In June 2006, the Coast Guard commissioned a new 240-foot Great
    Lakes icebreaker that has multi-mission capabilities and will perform both
    domestic icebreaking and aid-to-navigation as its primary mission
    activities. It replaces a 290-foot icebreaker that was commissioned in
    1944. Because the new Great Lakes icebreaker has not yet completed ice
    trials, we did not include it in this table.

    The Coast Guard classifies its vessel assets, such as those used in the
    ATON and domestic icebreaking missions, as cutters (assets 65 feet long or
    longer with adequate accommodations for crew to live on board) or boats
    (assets less than 65 feet in length that usually operate near shore and on
    inland waterways). For purposes of this report, the three main asset
    groups are ATON cutters, ATON boats, and domestic icebreakers.

    Icebreaking and ATON Assets Show Significant Increases in Time Spent on Homeland
                              Security Missions since 2001

    Since 2001, the Coast Guard's domestic icebreakers and ATON cutters have
    experienced significant increases in the time spent conducting missions
    related to homeland security. Most of this increase has come in the Ports,
    Waterways and Coastal Security (PWCS) mission, which involves such
    activities as conducting security patrols and escorting vessels. The
    increase was greatest for domestic icebreakers, which continue to be used
    more for homeland security missions than for icebreaking because of their
    availability during months when no icebreaking is needed. By contrast,
    ATON cutters and boats still spend most of their time on ATON-related
    activities, reflecting the year-round nature of the ATON mission. Some
    newer ATON cutters with greater multi-mission capabilities, however,
    continue to have a more diverse workload. Coast Guard officials said
    icebreakers and ATON vessels, while less than ideal for carrying out
    security missions, can perform these missions adequately.

    Domestic Icebreakers Show the Largest Increase in Time Spent on Homeland
    Security Missions

    During fiscal years 2001 through 2005, the domestic icebreakers divided
    their time between several of the Coast Guard's 11 missions, but PWCS
    activities accounted for roughly half of all resource hours during fiscal
    years 2002 through 2005.7 PWCS activities grew quickly from 15 percent of
    total resource hours in fiscal year 2001 to 53 percent in fiscal year
    2002, and they have remained at 44 percent or more of total hours through
    fiscal year 2005. At the same time, icebreaking hours began at 41 percent
    in fiscal year 2001 and then dropped down to 13 percent in 2002, but ended
    at 26 percent in fiscal year 2005. The vast majority of this increase in
    PWCS has occurred in the New York City area with smaller increases in
    other East Coast ports.8 As figure 2 shows, the increase came about
    largely by adding to the total number of hours these assets were operated.
    The total number of resource hours for these assets grew from about 12,000
    hours in fiscal year 2002 to a high of about 20,000 the following year.

    7 The Coast Guard maintains information, on a program-by-program basis,
    about how resources (assets such as ships and boats) are used to conduct
    its program missions. Each hour that these resources are used is called a
    resource hour. Resource hours do not include things such as the time that
    the resource stands idle or the time that is spent in maintaining it.
    "Support" was also a mission identified by the Coast Guard; however,
    because this mission accounted for time spent on non-mission activities
    such as public affairs and training, we did not consider these hours
    recorded as "Support" to be "resource hours."

    8 In addition the Coast Guard also has several icebreakers stationed at
    locations along the East Coast. Of the locations these icebreakers are
    stationed, the demand for additional presence and patrols has been
    greatest in New York City. Sector New York has a requirement of 116 hours
    per day of PWCS patrols. Other sectors have little or no hours required.

    Figure 2: Resource Hours for Domestic Icebreakers, Fiscal Years 2001
    through 2005

    The increase in PWCS hours for domestic icebreakers mainly reflects their
    availability during those months when no icebreaking needs to be done.
    Icebreaking needs are typically greatest from December 15 to April 15.
    Coast Guard officials said that because icebreakers do not have a primary
    summertime mission, using them to conduct PWCS missions during slack
    periods has not limited the Coast Guard's ability to conduct routine
    icebreaking missions.9 Icebreaking hours, however, did see some marked
    shifts during this period-most notably a decrease in fiscal year 2002
    followed by a substantial increase in fiscal year 2003. The decrease in
    2002 appears related to two main factors: a mild winter, during which the
    Great Lakes region was virtually free of ice throughout December and most
    of January, and a change in the way the Coast Guard accounted for its use
    of icebreakers. The Coast Guard does not record resource hours under two
    mission categories simultaneously, and prior to the attacks on September
    11, 2001, resource hours used to break ice while escorting a vessel with
    hazardous cargo would only have been recorded as ice operations. After the
    attacks, these same hours could be logged either as PWCS or icebreaking at
    the discretion of the vessel's commanding officer. The increase in ice
    operations hours for fiscal year 2003 reflected an unusually severe winter
    in the Great Lakes.

    9 According to a Coast Guard official, maintenance on the icebreakers is
    often done during the summer period and PWCS missions that occur during
    this time can result in planned maintenance being rescheduled. Although
    the assets have been ready to break ice when needed so far, the Coast
    Guard official stated that depending on how much the maintenance is
    delayed as well as whether there are any additional maintenance problems
    discovered, the potential exists for the assets not being ready if
    icebreaking is needed earlier than expected.

    Increased workloads have placed some icebreakers above the maximum number
    of recommended operating hours for the assets. The maximum recommended
    operating level, called an "underway hours limit," reflects maximum use
    established from planning documents, missions, and maintenance
    requirements, and historic use. In particular, the 65-foot small harbor
    tug fleet exceeded their underway hours limit from fiscal years 2001 to
    2003 by increasingly more hours, starting with being 10 hours over the
    underway limit in 2001 and progressing to nearly 2,000 hours over the
    underway limit in 2003. In contrast, the 140-foot icebreaking tugs were
    operated within their underway hours limit from 2001 to 2005.

    Coast Guard officials said domestic icebreakers, while not their vessel of
    choice for maritime security missions, can perform all PWCS missions
    adequately except for shore side patrols.10 The Coast Guard's 87-foot
    coastal patrol boats are the preferred assets for PWCS missions.
    Commissioned since 1998, these boats can travel at up to 25 knots and have
    a system that allows the crew to launch and recover small boats. 11
    Relative to these vessels, domestic icebreakers show both advantages and
    disadvantages (see table 4). Icebreakers are more capable of operating in
    cold weather, and their substantial size provides a significant presence
    on the waterways, but they are slower, less able to launch small boats,
    and pose increased training challenges for training crews in law
    enforcement.12

    10 Shore-side patrols typically involve visiting a maritime facility and
    providing a law enforcement presence on land. The patrols are typically
    conducted by a Coast Guard shore unit.

    11 A knot is equivalent to 1 nautical mile per hour, approximately 1.85
    kilometers or 1.15 miles-per-hour.

    Table 4: Comparison of Features of the 87-foot Patrol Boats and Domestic
    Icebreakers

    Feature                      Patrol boats        Domestic icebreakers
                                    87-foot coastal 140-foot        65-foot small
                                    patrol boat     icebreaking tug harbor tug
    Maximum speed                25 knots        14.7 knots      10 knots
    Cold weather capability      Limited         Yes             Yes
    Date commissioned            1998-2006       1979-1988       1962-1967
    Requires additional training No              Yes             Yes
    of crew for maritime
    security missions

    Source: Coast Guard.

    Increase in Homeland Security Missions Is Less Extensive for ATON Assets

    ATON assets also experienced an increase in use for homeland security
    missions after September 11, 2001, but to a much lesser degree than for
    domestic icebreakers. Overall, ATON assets were used for several of the
    Coast Guard's missions during fiscal years 2001 through 2005, but ATON
    remained the primary mission, accounting for more than 85 percent of the
    fleet's total resource hours for fiscal years 2001 to 2005. Time spent in
    PWCS activities increased from 4 percent of total resource hours in fiscal
    year 2001 to 10 percent in fiscal year 2002; since then, PWCS mission
    hours have steadily decreased (see fig. 3). Overall, PWCS activities
    accounted for 6 percent of resource hours during the period.

    12 To qualify for these crews, team members and officers must attend
    training in maritime law enforcement, where they are trained in the use of
    weapons including firearms.

    Figure 3: Resource Hours for ATON Assets, Fiscal Years 2001 through 2005

    When resource hours are analyzed more closely by type of ATON asset, there
    are significant differences in the amount of hours used for the PWCS
    mission. The increase in PWCS resource hours came primarily from cutters
    (vessels ranging in length from 65 to 225 feet). Overall, ATON activities
    account for about 79 percent of total resource hours for the cutters,
    compared with about 90 percent for ATON boats (vessels less 65 feet in
    length). ATON boats were the only vessels that did not have as much of an
    increase in PWCS resource hours immediately after the attacks on September
    11, 2001, though their use in PWCS activities did rise in fiscal year
    2003. Among the ATON cutters, the newer cutters have greater multiple
    mission capabilities and consequently tend to be used more often in other
    missions. For example, ATON cutters acquired between 1944 and 1976
    performed an average of 4 of the Coast Guard's 11 missions during fiscal
    years 2001 through 2005, while the 225-foot seagoing buoy tender, which
    the Coast Guard completed the acquisition of in 2004, was used in all 11
    of the Coast Guard's missions in fiscal years 2004 through 2005.

    Available Evidence Indicates Condition of Assets Varies Greatly and Mixed Impact
                                 on Mission Performance

    The available evidence does not give a consistent picture of how usage
    trends may be affecting the condition of these assets and, ultimately, the
    Coast Guard's ability to meet performance goals for icebreaking and ATON
    missions. We analyzed three types of evidence related to condition-the
    Coast Guard's primary measure for reporting asset condition, overall
    trends in maintenance expenditures on each type of asset, and a body of
    anecdotal evidence gathered primarily through interviews with Coast Guard
    personnel and site visits to various installations. The Coast Guard's
    primary condition measure shows some assets meeting the operating standard
    and others falling below it. However, the current measure for asset
    condition is not clearly linked to mission performance, but the Coast
    Guard is working on developing a measure that links the two. Trends in
    maintenance costs and the anecdotal evidence we gathered tend to indicate
    that asset conditions are declining, though not substantially beyond what
    Coast Guard officials said they would expect for vessels of this age.
    Performance indicators for the icebreaking and ATON missions likewise show
    mixed results, with the Coast Guard meeting some performance goals and not
    meeting others. In part, these mixed results can be explained by the many
    other factors besides asset condition, such as the severity of weather in
    any given year.

    Current Condition Measure Is Limited and Does Not Show a Clear Pattern in Asset
    Condition

    For icebreaking and ATON cutter assets, the Coast Guard's key summary
    measure of condition shows mixed results. This measure-percent of time
    free (POTF)-of major casualties has been mixed. 13 The Coast Guard's
    standard is 72 percent or better. Measured against this standard for
    fiscal years 2000 through 2004, the various types of icebreakers and ATON
    cutters vary considerably.14 As table 5 shows, some assets, such as the
    65-foot small harbor icebreaking tugboat and the 65- and 75-foot river
    buoy tenders met the standard nearly every year, while others such as the
    140-foot icebreaking tugboat and the 75-foot, 100-foot, and 160-foot
    inland construction tenders met it either not at all or only once during
    the 5-year period. Fiscal year 2004 was the worst of the 5 years, with
    only two of the eight types of cutters meeting the standard.

    13 A major casualty is a deficiency in mission-essential equipment that
    causes the major degradation of a primary mission or loss of at least one
    primary mission.

    14 The Coast Guard is in the process of developing a new condition metric
    and did not have fiscal year 2005 data available. Consequently, our
    analysis covers fiscal years 2000 through 2004.

    Table 5: Condition of Domestic Icebreakers and ATON Cutters as Measured by
    Coast Guard's Standard of 72 Percent or More of Time Free of Major
    Casualties, Fiscal Years 2000 through 2004

    Asset type                                  2000 2001 2002 2003 2004
    Domestic icebreakers
    140-foot icebreaking tugs
    65-foot small harbor tugs
    ATON cutters
    75-foot river buoy tenders
    65-foot river buoy tenders
    65/100-foot inland buoy tenders
    75/100/160-foot inland construction tenders
    175-foot coastal buoy tenders
    225-foot seagoing buoy tenders

    Source: GAO analysis of Coast Guard data.

    Legend = Met or exceeded 72-percent standard = Did not meet 72-percent
    standard

    The Coast Guard's condition measure for these assets, while instructive,
    needs to be viewed with some caution. As we have reported in our analysis
    of the condition of the Coast Guard's legacy deepwater assets, the measure
    captures only major equipment casualties, which degrade mission
    capabilities but does not capture minor equipment casualties that may also
    degrade mission capabilities. 15 As such, this measure may underestimate
    the decline in asset condition. The Coast Guard has acknowledged the
    limitations of this measure and is working on a replacement for it, which
    will better determine specific mission impacts.

    The POTF condition measure applies to cutters; the Coast Guard only
    recently started tracking POTF data for assessing condition trends on ATON
    small boats. During the fiscal year 2000 through 2004 period we reviewed,
    the Coast Guard did not have a centralized system for tracking the
    condition of these boats. Its internal assessment of the condition of the
    boats was based on two approaches, as follows:

    15 GAO, Coast Guard: Progress Being Made on Addressing Deepwater Legacy
    Asset Condition Issues and Program Management, but Acquisition Challenges
    Remain, GAO-05-757 (Washington, D.C.: July 22, 2005). The Deepwater fleet
    consists of 186 aircraft and 88 cutters of various sizes and capabilities,
    which play a critical role in all Coast Guard homeland and non-homeland
    security missions.

               o  For standard boats, which are purchased by Coast Guard
               headquarters and have similar capabilities and equipment for all
               boats of a particular type, the Coast Guard assessed condition by
               determining the boats' remaining service lives through a process
               referred to as ship structure and machinery evaluation boards
               (SSMEB). The SSMEB, which is conducted 10 years after a boat is
               commissioned and is repeated at 5-year intervals, applied to two
               of the six types of ATON boats we reviewed.

               o  For nonstandard boats, which are purchased by individual Coast
               Guard units for individual needs, the Coast Guard's assessment was
               based on anecdotal information from district boat managers,
               maintenance managers, annual boat inspection reports, and site
               visits. This approach was used on four of the six types of boats
               we reviewed.

    Using these approaches, the Coast Guard characterized most of these asset
    types as in fair to poor condition. By contrast, however, when the Coast
    Guard assembled POTF data for a portion of these boats in fiscal year
    2005, the data did not support this assessment. The boats analyzed had
    average scores above the Coast Guard's goal of 72 percent. (App. III
    provides further details on condition measures for each of the ATON and
    domestic icebreaking assets.)

    Increasing Maintenance Costs Indicate Possible Condition Issues

    For our second measure-trends in maintenance expenditures-the picture with
    regard to condition is more consistent than for our first measure:
    maintenance expenditures for domestic icebreaking and ATON cutters are
    increasing, even after taking inflation into account. We analyzed three
    types of maintenance costs16:

               o  Scheduled maintenance costs, which are planned for in advance
               and include such things as repainting the vessel;

               o  Unscheduled maintenance costs, which are for unforeseen
               emergencies; and
               o  Engineering Logistic Center (ELC) costs, which include
               fleetwide projects that require engineering assistance (such as
               checking for watertight integrity) and therefore cannot be handled
               at the unit level. These projects, such as replacing a generator,
               help sustain capability but do not enhance it, according to Coast
               Guard officials.

    16 We also examined a fourth category-deferred maintenance, which is the
    amount of scheduled maintenance that must be postponed in order to pay for
    unscheduled repairs. A previous GAO study found that a drop in this
    account is not necessarily an indicator that the condition of the assets
    are improving but rather a result of the Coast Guard having more money to
    address the maintenance needs. Due to this limitation we did not include
    our analysis of a sub-account within deferred maintenance which indicated
    a declining trend. Data to conduct an analysis on ATON small boats are not
    available.

    While there are some asset-by-asset variations, total maintenance costs
    for domestic icebreakers and ATON cutters increased during the period we
    examined (fiscal years 2001 through 2005).17 As figure 4 shows, total
    annual maintenance costs for domestic icebreakers nearly doubled, from
    slightly more than $3 million to slightly more than $6 million. The
    increase came primarily in two of the three categories in most
    years-scheduled maintenance costs and ELC costs. Although maintenance
    costs are also affected by the amount of funding available in any given
    year, according to Coast Guard officials, maintenance managers have
    discretion to move some funds to those assets most in need of maintenance
    money. Coast Guard officials have also said that these costs are
    indicative of condition issues. For example, an ELC official said that the
    increase in ELC costs was related to condition because the money was used
    for the overhaul of domestic icebreakers. In addition to the amount of
    funding available in any given year, these maintenance costs can also be
    impacted by a variety of other factors such as the pace of operations. For
    example, maintenance costs can be expected to increase as the pace of
    operations increases.

    17 Given the limitations of the Coast Guard data, we could not analyze
    maintenance costs for ATON small boats, and were unable to draw any
    conclusions about the condition of the ATON boats based on their
    maintenance costs. Starting in fiscal year 2003, the districts began
    shifting responsibility of boat maintenance from the district level to a
    centralized area level. Due to the segregated approach in which boat
    maintenance was carried out previously, maintenance data for the period we
    examined is inconsistent. Further complicating the analysis of this data
    is the fact that it is not broken out by scheduled and unscheduled costs,
    which would allow for identification of trends in unplanned maintenance
    and better reflect issues with condition. Finally, the maintenance cost
    figures reflect only half of the costs for standard boats, which is less
    than 40 percent of the total boat fleet.

    Figure 4: Domestic Icebreaking Maintenance Cost Trends, Fiscal Years 2001
    through 2005

    Note: The figures presented above have been adjusted for inflation using
    2005 dollars.

    Total annual cost increases for ATON cutters showed a similar trend, more
    than doubling from over $13 million to over $32 million during the 5-year
    period (see fig. 5). For ATON cutters, cost increases were greatest in ELC
    maintenance and unscheduled maintenance. As with icebreakers, Coast Guard
    officials considered these expenditures to be related to asset condition.

    Figure 5: ATON Cutter Maintenance Cost Trends, Fiscal Years 2001 through
    2005

    Note: The figures presented above have been adjusted for inflation using
    2005 dollars.

    Evidence Gathered from Interviews, Site Visits, and Other Records also Indicate
    Condition Issues

    Evidence we gathered during our discussions with maintenance personnel,
    our visits to various Coast Guard installations, and our review of other
    Coast Guard records also pointed to declining condition of a number of
    these assets. However, according a program manager who previously served
    as a commanding officer on an icebreaker, for some of the older assets,
    the decline in condition of those assets has not been beyond what would be
    expected of assets 20 years or more in age. During our interviews and site
    visits, Coast Guard personnel reported to us that crew members have had to
    spend increasingly more time and resources to troubleshoot and resolve
    maintenance issues on older domestic icebreaking and ATON assets. They
    indicated that because the systems and parts are outdated compared with
    the technology and equipment available today, it can be challenging and
    time consuming to diagnose a maintenance issue and find parts or determine
    what corrective action to take. For example, the propulsion control system
    on the 140-foot icebreaking tugs uses circuit cards that were
    state-of-the-art when the tugs were commissioned in the late 1970s to
    1980s but are no longer manufactured today and have been superseded by
    computer control systems (see fig. 6). Coast Guard personnel said the lack
    of a readily available supply of these parts has forced maintenance
    personnel to order custom made parts or refurbish the faulty ones,
    increasing the time and money it takes to address maintenance problems.
    Finding knowledgeable individuals to identify problems with outdated
    equipment is difficult, they said, which further complicates maintenance.
    Crews of other assets we visited also confirmed the difficulty of
    diagnosing problems and obtaining replacement parts for other critical
    subsystems such as the main diesel engines.

    Figure 6: Antiquated Circuit Card Rack, Which Serves as Part of the Main
    Propulsion Control System, on the 140-foot Icebreaking Tug

    Since at least 2002, the Coast Guard has been on record as saying these
    assets are in decline. In a mission needs analysis issued that year, the
    Coast Guard concluded that its domestic icebreaking and ATON assets were
    affected in varying degrees with respect to safety, supportability,
    environmental compliance, and habitability, and that addressing these
    issues would require replacing or rehabilitating the assets. 18 The
    analysis noted that the need to replace or rehabilitate inland buoy
    tenders and 45-foot buoy boats had been identified as early as 1993 but
    had not yet been addressed.19 It also noted that the 21-foot trailerable
    aids-to-navigation boats and the 55-foot aids-to-navigation boats-most of
    which have yet to be replaced-had been extended beyond their projected
    service lives.

    When we asked Coast Guard officials if current usage patterns were
    precipitating the decline of these assets, they said that overages can
    have an impact on some assets, especially those with more complex systems
    and subsystems. The officials said that exceeding planned usage limits may
    leave less time to maintain these systems. They said that the
    deterioration of an asset and its systems from usage consistently above
    the limits would be reflected in periodic engineering assessments, known
    as SSMEBs, of the assets. In our site visits, we did learn of one example
    in which increased use of assets for security-related purposes may be
    affecting condition. The example involves the 140-foot icebreakers, which
    currently are being used extensively for security-related activities when
    they are not engaged in icebreaking activity. According to Coast Guard
    personnel, these icebreakers were designed to operate at maximum power for
    icebreaking; however, maritime security missions typically require several
    hours of idling, which is detrimental to the engine. Extended periods of
    idling, they said, causes oil discharge and sludge build up in the engine
    and mufflers. Thus, running assets in ways for which they were not
    designed could result in faster degradation of their condition.

    18 Absent from the analysis were the newer 49-foot stern loading buoy
    boats, and the 175-foot and 225-foot seagoing buoy cutters.

    19This need was to be met by acquiring a new 49-foot buoy stern loading
    boat, but the existing 45-foot buoy boat assets were continued in service
    when the Coast Guard determined that the 49-foot boats could not support
    the needs for all locations across the country.

    Performance Indicators for Icebreaking and ATON Missions Show Mixed Results

    Against this backdrop of condition indicators, the Coast Guard's measures
    of performance for domestic icebreaking and ATON missions show mixed
    results, with several indicators showing that mission performance has been
    improving or largely unchanging, while at least one other indicator
    indicates a decline.

               o  For domestic icebreaking, the Coast Guard's performance
               indicator is the number of days that ice leads to closures of
               waterways in the Great Lakes region-the region in which most
               domestic icebreaking activity occurs.20 The Coast Guard's
               performance goal is to have 2 or fewer closure days during average
               winters.21 During fiscal years 2001 through 2005 the Coast Guard
               met this goal every year but 1. The exception was fiscal year
               2004, when waterways were closed for 4 days. According to Coast
               Guard officials, however, vessel condition was not a factor in
               waterway closures; instead, they were related to an icebreaker's
               being diverted to free a stuck vessel and to a response to a
               commercial aircraft crash.

               o  For ATON, the Coast Guard's primary performance indicator is
               the number of collisions, allisions, and groundings. 22 Since
               these events can cause deaths and injuries, environmental and
               property damage, and lead to waterway closures that limit
               commercial and recreational activity, a decline in this measure is
               an improvement. During fiscal years 2001 through 2005, this
               measure declined-a positive development (see fig. 7).

    20 In our recent review of the performance measures for non-homeland
    security missions, we found that although the Coast Guard breaks ice in
    many East Coast ports and waterways, according to Coast Guard officials,
    the measure focuses on the Great Lakes region because it is a large
    commerce hub where the icebreaking season tends to be longer and where ice
    has a greater impact on maritime transportation. Coast Guard program
    officials at agency headquarters said that they are in the early stages of
    developing a new primary performance measure that will incorporate
    domestic icebreaking activities in areas beyond the Great Lakes. For more
    information, see GAO, Coast Guard: Non-Homeland Security Performance
    Measures Are Generally Sound, but Opportunities for Improvement Exist,
    GAO-06-816 (Washington, D.C.: Aug. 16, 2006).

    21 The Coast Guard has a goal of 8 or fewer days during severe winters.

    22 The Coast Guard defines an "allision" as a vessel collision with a
    fixed object.

    Figure 7: Average Number of Collisions, Allisions, and Groundings, Fiscal
    Years 2001 through 2005

               o  While the Coast Guard's primary ATON performance indicator was
               showing improvement, however, an important secondary measure was
               showing an adverse effect. This indicator, which measures the
               probability that an aid to navigation or a system of
               aids-to-navigation is performing its specified function at any
               randomly chosen time and is expressed as a percentage of total
               time, is the leading performance measure used in managing the ATON
               program, according to Coast Guard officials.23 This measure has
               steadily declined since fiscal year 2002 (see table 6), and since
               a smaller percentage means fewer aids are available, a decline in
               this measure is an adverse development. Coast Guard officials said
               some of this decline was attributable to the condition of ATON
               cutters and boats for servicing the navigational aids, but they
               were not able to estimate how much of the decline could be
               attributed to this cause.24

    23 The Coast Guard's primary indicator-collisions, allisions, and
    groundings-is the measure included in external performance reports, but it
    reflects many factors outside the aids to navigation mission, such as
    weather, dredging, and vessel equipment standards.

    Table 6: Availability of Navigational Aids, Fiscal Years 2001 through 2005

    Fiscal year Percent of aids available
    2001                             98.3
    2002                             98.4
    2003                             98.2
    2004                             97.6
    2005                             97.3

    Source: Coast Guard.

    Note: Coast Guard's goal is 99.7 percent of all aids to navigation
    available.

    In other work, we have noted that the Coast Guard's performance indicators
    can be affected by multiple factors and that there are challenges to using
    such measures in linking resources to results.25 The ability to meet
    icebreaking goals, for example, can be affected by the severity of the
    winter. In fact, when the Coast Guard met its goal for waterway closures
    in fiscal year 2005, Coast Guard officials attributed the result in part
    to less severe average ice conditions than in previous years. Similarly,
    the ability to keep navigational aids in working order can be adversely
    affected by such uncontrollable factors as the severity of a hurricane or
    winter storm season.

    The Coast Guard has launched a number of initiatives designed to address
    challenges in linking resources to results of these missions.26 These
    initiatives followed program assessments conducted by the Office of
    Management and Budget, which completed an assessment of the ATON program
    in 2002 and the domestic icebreaking program in 2004.27 For the ATON
    program, the assessment determined that the program did not demonstrate
    results and recommended that the program have specific long-term
    performance goals that focus on outcomes. The assessment of the domestic
    icebreaking program determined that the program was effective, but that
    more ambitious performance targets needed to be set. In response to these
    findings, the Coast Guard has worked to set long-term performance targets
    and develop new measurement frameworks to align with OMB's
    recommendations.

    24 Coast Guard officials also said that, in some cases, the lack of
    availability was related not to vessel's condition but to its use in other
    missions. For example, seagoing and coastal buoy tenders may be called
    upon to respond to unexpected events like hurricanes, precluding their use
    in fixing navigational aids.

    25 See, for example, GAO, Coast Guard: Relationship between Resources Used
    and Results Achieved Needs to Be Clearer, GAO-04-432 (Washington, D.C.:
    Mar. 22, 2004).

    26 For more information on these initiatives, see GAO, Coast Guard:
    Non-Homeland Security Performance Measures Are Generally Sound, but
    Opportunities for Improvement Exist, GAO-06-816 (Washington, D.C.: Aug.
    16, 2006).

    To Continue to Achieve the Missions of Its ATON and Domestic Icebreaking Assets,
    the Coast Guard Has Taken Actions, Made Proposals, and Studied Outsourcing
                                     Possibilities

    The Coast Guard has considered or proposed a wide variety of actions to
    continue to achieve the missions that its domestic icebreaking and ATON
    assets perform and is moving ahead with several of them. Actions under way
    include developing new ways to measure asset condition, manage boat and
    cutter maintenance, and make choices about which maintenance projects to
    conduct. The Coast Guard has also acquired some new buoy tenders and a new
    icebreaker, though the bulk of its icebreaking and ATON fleet remains at
    or beyond projected service lives. Coast Guard officials stated that to
    determine whether and when to replace or rehabilitate aging assets,
    factors such as the assets' condition and trends in maintenance costs,
    among other things, are taken into account. Proposals to systematically
    rehabilitate or replace these assets have been denied or deferred by DHS
    or the Office of Management and Budget (OMB), apparently due to
    competition from initiatives such as the $24-billion Deepwater project for
    replacing or renovating other Coast Guard vessels and aircraft. In
    response, the Coast Guard has separated the proposals into smaller parts
    and is trying to fund some projects from within the Coast Guard's budget.
    Finally, the Coast Guard studied what mission activities make the best
    business case for outsourcing of functions to the private sector, but
    states that potential disadvantages to outsourcing exist such as loss of
    capabilities and inability to retain personnel.

    27 These assessments were done using OMB's Program Assessment Rating Tool
    (PART), which is a diagnostic rating tool meant to provide a consistent
    approach to evaluating federal programs as part of the executive budget
    formulation process. It applies 25 questions to "programs" under four
    broad topics: (1) program purpose and design; (2) strategic planning; (3)
    program management; and (4) program results (i.e., whether a program is
    meeting its long-term and annual goals) as well as additional questions
    that are specific to one of seven mechanisms or approaches used to deliver
    the program.

    Actions Have Been Taken to Manage Assets and Acquire Some New Ones

    Three main steps to manage assets are under way, and several acquisitions
    have been completed in both the icebreaking and ATON fleets.

      Coast Guard Is Developing a More Robust Condition Measure

    The Coast Guard is working on the development of a new measure to track an
    asset's condition. As mentioned above, the Coast Guard's previous measure,
    percent of time free of major casualties, did not capture the extent to
    which equipment casualties degraded mission capabilities. Called "percent
    of time fully mission capable," this new measure is intended to more
    directly link a cutter's condition to its mission capability. Developed
    after our examination of the condition of deepwater assets, this measure
    will be used for ATON and domestic icebreaking assets as well.28 For the
    new measure, the Coast Guard is developing codes that rank the degree of
    importance of each piece of a cutter's equipment to each mission that the
    cutter could perform. The Coast Guard plans to use these codes in casualty
    reports, providing engineers and operators with information about the
    impact of equipment casualties on each possible mission. This information
    will then be used in calculating the condition measure for each cutter
    class and mission. This information would allow Coast Guard officials to
    determine, for example, the degree of icebreaking capability of its
    domestic icebreaking fleet at any given time. Coast Guard officials said
    they expect final approval of this measure this year.

      Coast Guard Is Implementing New Approaches to Manage ATON Boat and Cutter
      Maintenance

    The Coast Guard is implementing a centralized boat maintenance initiative
    to improve the management of its boat fleet, which includes many ATON
    boats. In contrast to the previous approach in which local boat operators
    managed boat maintenance and oversaw the spending of maintenance funds,
    the new initiative places management of boat maintenance and expenditures
    with naval engineers. According to the Coast Guard, the key advantages of
    this initiative include standardized maintenance practices for the boats,
    better oversight of maintenance funding, and enhanced tracking and
    analysis of casualties. In addition, it should improve the tracking of the
    condition of the Coast Guard's small boat fleet, which has lacked a
    centralized tracking system. Known as Centralized Boat Maintenance
    Management, this initiative is expected to be rolled out Coast Guard-wide
    by fiscal year 2008 if adequate resources and personnel are available.

    28 GAO-05-757 .

    Since 2002, the Coast Guard has also been gradually implementing a
    maintenance approach called "condition based maintenance" for select
    subsystems and parts of its newer coastal and seagoing buoy tending
    cutters.29 Under this approach, the condition of a part or subsystem, such
    as the main diesel engine, is evaluated or assessed at regular intervals
    to determine whether it needs to be replaced or have maintenance
    performed. Parts or systems would be replaced or receive maintenance only
    if their condition showed excessive wear or did not perform at an
    acceptable level. Under the previous approach, maintenance occurred at
    time-based intervals even if the part showed no excessive wear or
    performed acceptably. The key advantage of the change, according to Coast
    Guard officials, is reduced costs. For example, the Coast Guard estimated
    that it reduced drydock costs related to maintaining newer coastal and
    seagoing buoy tenders $2 million in fiscal year 2005. The Coast Guard is
    considering expanding the use of this maintenance approach to other
    subsystems of the newer buoy tending assets and the new Great Lakes
    icebreaker commissioned in 2006.

      Coast Guard Is Developing a Tool to Better Prioritize Upgrades and Maximize
      Asset Capabilities

    In 2002, we recommended that the Coast Guard develop a long-term strategy
    to set and assess levels of mission performance.30 We found this was an
    important step to take because it links investments to asset capabilities
    and mission priorities so that the Coast Guard can better decide how
    limited budget dollars should be spent. The Coast Guard has been working
    to apply the principles behind such a strategy to (1) better prioritize
    the projects needed to upgrade assets such as aging ATON and domestic
    icebreakers and (2) obtain the greatest overall mix of capabilities for
    its assets within its budget in order to maximize mission performance. The
    tool it is developing is called the Capital Asset Management Strategy
    (CAMS).

    29 A form of this approach was first adopted by the Navy in the late 1970s
    and most Coast Guard "condition based maintenance" capability is derived
    from proven Navy programs. According to Coast Guard officials, the Coast
    Guard is in the process of evaluating what other assets and systems for
    which such a maintenance approach may be effective. They stated that this
    approach is not a replacement for preventative maintenance work but is
    intended to complement it.

    30 GAO, Coast Guard: Comprehensive Blueprint Needed to Balance and Monitor
    Resource Use and Measure Performance for All Missions, GAO-03-544T
    (Washington, D.C.: Mar. 12, 2003); and GAO, Coast Guard: Strategy Needed
    for Setting and Monitoring Levels of Effort for All Missions, GAO-03-155
    (Washington, D.C.: Nov. 12, 2002).

    CAMS is designed to analyze the capability trade-offs for upgrades and
    maintenance projects across asset classes, allowing the Coast Guard to
    determine which combination of projects will provide the most capability
    for the dollars invested. These analyses take into account such factors as
    asset condition, the asset's importance to specific missions, and the
    relative importance of missions. The Coast Guard continues to refine CAMS
    and expects to have it in full use beginning with the budget for fiscal
    year 2009. The recommendations stemming from CAMS are intended to augment
    the information currently provided to decision makers in the budget
    development process.

      Coast Guard Acquired Some New Assets

    Since the 1990s, the Coast Guard has been able to replace buoy tenders
    with new assets that represent about 15 percent of its current ATON fleet.
    From 1996 to 2004, the Coast Guard commissioned 14 new 175-foot coastal
    buoy tenders and 16 new 225-foot seagoing buoy tenders to replace an aging
    fleet of 11 coastal and 27 seagoing buoy tenders that were built between
    1942 and 1971. The new buoy tenders have improved capabilities such as the
    following:

               o  A computerized positioning system that automates the task of
               holding the vessel in place while working on a navigational aid.
               Previously, this task had to be done manually, requiring the crew
               to constantly monitor and maintain the vessel's position,
               sometimes for up to 10 hours at a time. The system relieves the
               crew of this task and reduces safety concerns associated with crew
               fatigue.

               o  Bow and stern thrusters to enhance the vessels' maneuverability
               and improve the crew's ability to maintain position.

               o  Hydraulic chain stoppers and winches to reduce the number of
               crew members required to do the work and enhance safety (see fig.
               8).

               o  Accommodations that allow for dual gender crews, increasing the
               Coast Guard's ability to allow women to serve on the vessels.

    Figure 8: Chain-in Haul Winch

    These and other features also allow the newer buoy tenders to carry out
    other missions, according to a Coast Guard official involved in their
    design and acquisition. Their size, stability, and maneuverability are
    useful for such missions as search and rescue, homeland security, and law
    enforcement, and they have specific capabilities for dealing with other
    duties as skimming oil or mounting machine guns for security patrols. With
    their sizeable fuel tanks and storage capacity, they can also serve as
    logistics support platforms to restock vessels involved in drug
    interdiction and other activities. For 7 weeks in 2005, for example, one
    tender served as a supply platform for a Coast Guard vessel conducting
    drug interdiction patrols. According to Coast Guard officials, this
    enabled the patrol vessel to remain on patrol in the area for a longer
    period of time than it would have otherwise with its limited fuel and
    storage capacities.

    Besides the buoy tenders, the Coast Guard commissioned a new 240-foot
    multimission icebreaker in 2006 to replace a 62-year-old icebreaker and an
    aging buoy tender on the Great Lakes. The new icebreaker has enhanced
    icebreaking capabilities and the same ATON capabilities as the newer
    seagoing buoy tenders, enabling it to work on navigational aids in ice
    conditions as well as during other times of the year when no icebreaking
    is needed.

    Additional Proposals to Rehabilitate or Replace Aging Assets Remain Largely
    Unfunded

    Despite the new acquisitions, more than half of the assets in the domestic
    icebreaking and ATON fleet have reached or are nearing the end of their
    service lives. Coast Guard officials stated that they use a process that
    considers information such as how close the assets are to the end of their
    design life, the condition of the assets as determined by periodic
    assessments, and trends in maintenance costs, among other things to
    determine whether to rehabilitate or replace these aging assets. This
    information is used to identify the asset types that are most in need of
    replacement or major maintenance, and therefore should be given greater
    consideration in maintenance planning and budgeting.

    In 2002, the Coast Guard proposed options for systematically
    rehabilitating or replacing 164 cutters and boats in these fleets.31
    According to Coast Guard officials, these options were proposed after
    determining that the age, condition, and cost of operating these assets
    would diminish the capability of the Coast Guard to carry out ATON and
    domestic icebreaking missions over time without rehabilitation or
    replacement of some or all of the assets. In 2004, it completed a
    preliminary analysis of four approaches, including the status quo-that is,
    maintaining the existing fleet. This analysis provided an estimate of the
    total life-cycle costs for each approach over a 33-year period from fiscal
    year 2005 to fiscal year 2037.32 (See table 7 for a description of each
    approach.) Estimated costs ranged as high as $8.5 billion; however, Coast
    Guard officials emphasized that these estimates were preliminary and are
    not reliable. As a result, we are not reporting these numbers in detail.

    31 The scope of this proposal considered rehabilitating or replacing the
    following asset types: 21-foot trailerable aids-to-navigation boats;
    45-foot buoy boats; 55-foot aids-to-navigation boats; 63-foot
    aids-to-navigation boat; 72-foot cable laying boat; 65-foot and 75-foot
    river buoy tenders; 65-foot small harbor tugs; the 65-foot and 100-foot
    inland tenders; the construction tenders (75-foot, 100-foot, and
    160-foot); and the 140-foot icebreaking tugs.

    Table 7: Approaches to Replace or Rehabilitate ATON and Domestic
    Icebreaking Assets under the Integrated ATON Platform Modernization
    Project

    Status quo: The existing fleet of ATON and domestic icebreaking assets
    would receive maintenance as needed to maintain current operations.
    Rehabilitation: Nearly all existing assetsa would undergo major
    rehabilitation projects whose effect is expected to last 15 years for most
    vessels after which another major rehabilitation would be required.
    Replace: All existing assets would be replaced with a system of new
    standardized assets.
    Rehabilitate/replace: Depending on the condition of certain asset types,
    the assets would be either replaced with new assets or rehabilitated.

    Source: GAO analysis of Coast Guard data.

    aUnder this alternative, trailerable aids-to-navigation boats and the
    45-foot buoy boats would be replaced.

    No funds have been allocated to pursue this project further, apparently
    due to competing funding requests for replacing or rehabilitating other
    Coast Guard assets. According to a Coast Guard program official, although
    resource proposals to carry out this project were made during the budget
    planning processes for fiscal years 2004 through 2007, the requests were
    either deferred or denied by DHS or the Office of Management and Budget.
    Coast Guard officials involved in the program said they were not aware of
    the exact reasons why the requests were terminated or deferred. The
    officials said that the funding demands from other major Coast Guard
    programs already underway (such as the Deepwater program for replacing or
    rehabilitating aircraft and cutters with greater at-sea capability) that
    likely had higher priority in the competition for limited resources
    combined with the large scope and size of the proposed project, may have
    prevented the project from being funded.

    32 These life-cycle costs include costs associated with planning and
    design, procurement, management and use, and disposal of the assets at the
    end of their service lives. We did not assess the reasonableness of the
    estimates provided in this analysis.

    Without specific funding to move the project forward, the Coast Guard has
    attempted to break the project into smaller components and pursue
    potential funding from within the Coast Guard's budget, focusing on the
    assets most in need of maintenance or replacement. In February 2006, the
    Coast Guard began a project to replace its fleet of 80 trailerable
    aids-to- navigation boats with new boats that have enhanced capabilities
    to do ATON work as well as other missions.33 The enhanced capabilities
    include equipment to lift navigational aids out of the water for service,
    more deck space for working on these aids, an elevated work platform for
    working on aids that are high in the water, and faster speeds to reduce
    transit times. The Coast Guard intends for the new boats to be more
    multimission capable. For example, their added speed and deck space will
    help with search and rescue missions, and they will have gun mounts for
    use in law enforcement or maritime security missions.

    According to a Coast Guard official, this acquisition would cost
    approximately $14.4 million if all 80 boats are purchased and would bring
    on new boats over a 5-year period as funds allow.34 The Coast Guard
    official responsible for the project said the Coast Guard intends to make
    the purchases using a funding stream appropriated for the maintenance of
    nonstandard boats that can be allocated to the boats with the most
    pressing maintenance or recapitalization needs. Availability of these
    funds, however, depends on the condition and maintenance needs of other
    nonstandard boats; if this funding has to be applied to meet other needs,
    such as unanticipated problems, it may not be available for purchasing
    these boats.

    Separate from this effort to acquire new trailerable boats, the Coast
    Guard has made a request as part of the budget process to begin
    rehabilitating aging river buoy and construction tenders. This project,
    which will focus on rehabilitating the systems within the engine rooms of
    the assets, is estimated to cost approximately $75 million. The Coast
    Guard plans to include this project in future budget requests. Coast Guard
    officials indicated that they were submitting this request because these
    assets were determined to be in the worst condition.

    33 These boats can be placed on trailers and transported on land by truck.

    34 According to a Coast Guard official, the Coast Guard is purchasing
    these boats under a 5-year "indefinite delivery, indefinite quantity"
    contract that allows the Coast Guard to order as many boats from the
    vendor at any given time at a cost of $180,000 per boat. The official
    stated that this price includes delivery, spare parts, trailers, and crew
    training and that the Coast Guard's obligation under the contract was to
    purchase at least one boat, which it has already met. Currently, the Coast
    Guard has 24 more boats on order and expects to order a total of 80 over
    the course of the contract to replace its existing fleet. According to a
    Coast Guard official, the Coast Guard hopes to have all new boats in place
    by 2011. This official also stated that under this contract, other DHS
    agencies also have the option of purchasing up to 20 boats of similar
    design.

    Study Identified Outsourcing Possibilities but May Face Disadvantages to
    Implement

    In 2004, the Coast Guard examined possibilities for outsourcing missions
    in response to an OMB assessment of the ATON program.35 As a result of
    that assessment, Coast Guard and OMB officials agreed to study which ATON
    activities make the best business case for being performed by contractors
    outside of the Coast Guard with minimal impact on the Coast Guard's
    ability to carry out its other missions.36 The subsequent study, completed
    in April 2004, found that inland construction tenders spent most of their
    resource hours on the ATON mission with minimal impact or use in other
    missions and provided one of the best opportunities for further study of
    outsourcing.37 However, the study did not quantify the potential benefits
    that could be derived from outsourcing these activities.

    In August 2006 the Coast Guard completed an analysis as to whether ATON
    functions could feasibly be outsourced, and which parts, if any, were
    inherently governmental in nature.38 The objective of this analysis was to
    compare the Coast Guard's inland construction and river buoy tender
    operating costs with representative private sector marine industry costs
    and make recommendations regarding the feasibility to commercially support
    and operate the inspection, servicing, and contingency response capability
    of the ATON mission and assets. According to Coast Guard officials, the
    results will be incorporated into future acquisition plans for replacing
    the current capabilities represented by inland construction tenders and
    river buoy tenders. This Coast Guard analysis was finalized after we had
    completed our audit work. Therefore, we were unable to obtain and review
    the study in time for the final preparation of this report.

    35 This assessment was done using OMB's Program Assessment Rating Tool
    (PART), which is a diagnostic rating tool meant to provide a consistent
    approach to evaluating federal programs as part of the executive budget
    formulation process. The assessment of the ATON program was completed in
    2002.

    36According to Coast Guard officials, a limited amount of ATON work is
    currently contracted out in cases where the capabilities are needed only
    occasionally or the work cannot be done by the Coast Guard's assets. For
    example, in the aftermath of Hurricane Katrina, some ATON work was
    contracted to commercial providers that fixed navigational aids in waters
    too shallow for the Coast Guard's construction tenders to reach.

    37 BearingPoint, United States Coast Guard Aids to Navigation Business
    Case Analysis, April 2004.

    38 This study was commissioned by OMB in July 2006 and directed the Coast
    Guard to provide a conceptual analysis regarding ATON assets operating in
    the Western Rivers Waterways System. To accomplish this directive, the
    Coast Guard conducted an economic analysis of the Coast Guard's inland
    construction tender and river buoy tender assets.

    Although possibilities for outsourcing were identified, outsourcing also
    carries potential disadvantages, according to Coast Guard program
    officials. Potential disadvantages they mentioned include the following:

               o  Outsourcing could lead loss of "surge" capability-that is, the
               capacity to respond to emergencies or unusual situations. In part,
               this capability may be needed within the ATON or icebreaking
               mission itself, such as when a hurricane or ice destroys or
               damages a large number of navigation aids. In the case of
               Hurricane Katrina, Coast Guard officials stated that because the
               Coast Guard had ATON assets such as construction tenders, crews
               were able to begin working immediately to repair damaged aids and
               get the waterways open to maritime traffic again. This "surge"
               capability may also be needed for other missions, such as occurs
               when ATON assets can be used to support search and rescue efforts.
               In the aftermath of Hurricane Katrina, for example, some ATON
               assets provided logistical support for first responders or
               transported stranded individuals.

               o  Outsourcing may disrupt the Coast Guard's personnel structure
               and weaken the agency's ability to attract and retain personnel.
               Specifically, they are concerned that outsourcing would likely
               reduce opportunities that provide important experience for
               personnel to advance in their careers and eliminate positions that
               typically have more predictable work schedules than positions in
               some of the other Coast Guard's missions.

                                Concluding Observations

    The Coast Guard has been using its domestic icebreaking vessels and its
    ATON assets to a lesser extent, to accommodate the need for additional
    homeland security activities in the post-September 11 environment, and it
    is doing so thus far largely without curtailing ATON or domestic
    icebreaking activities or unduly straining these assets past their
    designed workloads. The available evidence also indicates that despite
    some decline in the condition of some asset types, the Coast Guard's
    ability to meet its aids-to-navigation and domestic icebreaking missions,
    as indicated by mixed outcomes of its key mission performance measures,
    has not shown clear trends of decline. Efforts by Coast Guard personnel to
    troubleshoot operational problems and to take other steps to keep assets
    operating appear to be one reason mission performance has not been further
    affected, and many other factors, such as the harshness of a winter or the
    severity of storm damage on navigation buoys and beacons, can also affect
    performance results. For the present, however, the impact of these
    additional mission responsibilities does not appear to be a cause for
    alarm.

    That said, the future of these assets bears close watching. The fact that
    many of the assets have or will be approaching the end of their design
    service lives could mean the need for rehabilitated or new assets may
    become more pressing in the future. Another issue is whether current
    operations, both in level and types of usage, are adding to these costs
    and incidents beyond what the Coast Guard would normally expect. For
    example, operating domestic icebreakers beyond their underway hours
    limit-could potentially accelerate the level of decline. If this is the
    case, using these assets to meet security missions could be meeting the
    Coast Guard's immediate needs but accelerating the need for replacement or
    rehabilitation. According to Coast Guard officials, the Coast Guard's
    attempt to systematically rehabilitate or replace its ATON and domestic
    icebreaking fleet was proposed at a time when competing demands likely
    caused postponements of requests for the needed funds. These competing
    demands, reflected largely in the Coast Guard's expensive and lengthy
    Deepwater asset replacement program, will continue for some time, as will
    other pressures on the federal budget. The Coast Guard is moving to
    improve the process it uses to set budget priorities through actions such
    as its new tool to link asset condition and funding decisions to better
    identify the projects that will provide the most capability with the
    limited funds that are available. Given that many of these actions are
    recent and need a chance to work, it is too early to evaluate their
    effectiveness. However, even as the Coast Guard takes steps to determine
    how best to replace or rehabilitate its assets, limited budgetary
    resources combined with other competing asset replacement programs already
    in process will likely continue to challenge the Coast Guard to find
    sufficient resources to carry out the options identified.

                                    Agency Comments

    We requested comments on a draft of this report from the Department of
    Homeland Security and the Coast Guard. The Coast Guard provided technical
    comments, which we have incorporated into the report as appropriate.

    As agreed with your office, unless you publicly announce the contents of
    this report earlier, we plan no further distribution of it until 30 days
    from the date of this letter. We will then send copies of this report to
    the appropriate congressional committees; the Secretary of Homeland
    Security; the Commandant of the Coast Guard; and other interested parties.
    In addition, this report will be available at no charge on the GAO Web
    site at http://www.gao.gov.

    If you or your staff have any questions about this report, please contact
    me at (202) 512-9610 or CaldwellS@gao.gov. Contact points for our Offices
    of Congressional Relations and Public Affairs may be found on the last
    page of this report. GAO staff who made major contributions to this report
    are listed in appendix V.

    Stephen L. Caldwell
    Acting Director, Homeland Security and Justice Issues

    Appendix I: Objectives, Scope, and Methodology

    This report examines the time spent by the U.S. Coast Guard's domestic
    icebreaking and ATON assets on various missions, the condition of these
    assets, and the actions the Coast Guard has taken to continue to achieve
    the missions of these assets. Our work focused on three key questions: (1)
    What are the recent trends in the amount of time these assets have
    performed various missions? (2) What is the condition of the Coast Guard's
    ATON and domestic icebreaking assets and how has their condition impacted
    the performance of their primary missions? (3) What actions has the Coast
    Guard taken to continue to achieve the missions of its ATON and domestic
    icebreaking assets?

    In identifying trends in the amount of time spent on missions and the
    impact of these trends, we analyzed data from the Coast Guard's Abstract
    of Operations (AOPS) database, which tracks resource hours for each asset.
    For each asset type within our scope, we examined trends in the number of
    resource hours spent between fiscal years 2001 and 2005 conducting each of
    the Coast Guard's missions.1 To determine the reliability of this data, we
    (1) reviewed the results of previous reliability assessments we have
    conducted of this data for other work and (2) confirmed with the AOPS
    program manager that the data and the manner in which it is managed has
    not changed since the previous assessment that would affect its
    reliability. We determined that the data was sufficiently reliable for the
    purposes of this report. We supplemented our analysis of these resource
    hours with documentation from interviews with asset program managers and
    crews of ATON and domestic icebreaking assets.

    In assessing the condition of the assets during fiscal years 2001 to 2005,
    we analyzed what Coast Guard officials identified as the best available
    condition measures. We obtained concurrence from the Office of Naval
    Engineering and the Office of Cutter Forces that the appropriate measures
    to use for the condition of assets were percent of time free of major
    casualties, scheduled/unscheduled/Engineering Logistics Center maintenance
    costs, and estimated deferred maintenance costs. To determine the
    reliability of this data, we (1) reviewed the results of previous
    reliability assessments we have conducted of this data for other work and
    (2) examined responses the Coast Guard provided to a questionnaire we sent
    requesting updated information on the administration and oversight of the
    databases. We determined that the data was sufficiently reliable for the
    purposes of this report. We supplemented our analysis of these measures
    with documentation from internal Coast Guard reports, as well as from
    interviews of asset program managers at Coast Guard headquarters and
    crewmembers of the assets located in the field. In addition to talking
    with crewmembers, we directly observed the condition of various assets
    during our site visits to Alameda, Calif; Bayonne, N.J.; Buchanan, Tenn;
    Baltimore, Md; Mobile, Ala; Seattle, Wash; Sault St. Marie, Mich; and
    Atlantic Beach, N.C. These assets were selected to provide diversity in
    terms of type and age of asset and geographic location. In addition, we
    interviewed Coast Guard officials with the Area Commands in Alameda,
    Calif., and Portsmouth, Va., as well as in Districts 5 and 13.

    1 Due to a lack of data, we did not perform this analysis for the 72-foot
    cable laying boat.

    To determine the actions that the Coast Guard has undertaken to continue
    to achieve the missions of its ATON and domestic icebreaking assets, we
    interviewed officials with the Coast Guard's Engineering and Logistics
    Center, Engineering and Logistics Directorate, Office of Naval
    Engineering, Office of Boat Forces, and Office of Cutter Forces. To obtain
    information on newer assets the Coast Guard has acquired, we also made
    site visits to interview personnel and observe the assets in San
    Francisco, Calif.; Atlantic Beach, N.C.; Baltimore, Md.; Cheboygan, Mich.;
    and Mobile, Ala. To determine what proposals the Coast Guard has made to
    rehabilitate or replace its ATON and domestic icebreaking assets, we
    reviewed Coast Guard project documents and interviewed officials at Coast
    Guard headquarters. We did not, however, verify the accuracy of the cost
    estimates provided for those proposals. Finally, to determine the work the
    Coast Guard has done to study the outsourcing of ATON and domestic
    icebreaking mission activities and the potential impact of outsourcing
    those activities, we interviewed Coast Guard officials at headquarters as
    well as officials and crew members in the field. We also reviewed the
    completed business case analysis of outsourcing opportunities for ATON
    mission activities.

    We performed our review from July 2005 to August 2006 in accordance with
    generally accepted government auditing standards.

    Appendix II: Mission Resource Hours of ATON and Domestic Icebreaking
    Assets, Fiscal Years 2001 to 2005

    Appendix II provides information on the number of resource hours Coast
    Guard ATON and domestic icebreaking assets have spent on various Coast
    Guard missions during fiscal years 2001 through 2005. The Coast Guard
    maintains information, on a program-by-program basis, about how resources,
    such as vessels, boats, and aircraft, are used. Each hour that these
    resources are used is called a resource hour. Resource hours are
    accumulated and reported by quarter and represent the time spent by the
    Coast Guard's major assets to conduct its programs. The table 8 shows by
    asset type, the hours ATON and domestic icebreaking assets have spent on
    each of Coast Guard's missions for each fiscal year, from 2001 through
    2005. The percentage of each asset types' total fiscal year resource hours
    that these hours represent is shown in parenthesis.

    Table 8: Resource Hour Usage and Percent, by Asset Type and Mission
    Program, Fiscal Years 2001 through 2005

    Fiscal
    year                 Non-homeland security                            Homeland security
    225-foot seagoing buoy tenders
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     80     0  4,366      0(0%)   447(6%)   918(13%)   0(0%)   171 58 (1%)   948(13%)    216(3%)
           (1%)  (0%)  (61%)                                          (2%)
    2002    407     0  5,139      0(0%)     0(0%) 1,066(10%)   0(0%)   254  0 (0%) 3,547(33%)    200(2%)
           (4%)  (0%)  (48%)                                          (2%)
    2003     75    48  9,189     65(0%)    24(0%) 1,774(11%)   0(0%)    33     181 2,113(13%) 3,170(19%)
           (0%)  (0%)  (55%)                                          (0%)    (1%)
    2004    435    13 13,039    746(3%)    78(0%) 2,852(13%)  40(0%)   293   1,617  1,363(6%)  1,763(8%)
           (2%)  (0%)  (59%)                                          (1%)    (7%)
    2005    631   195 13,118    622(3%) 1,171(6%)  1,606(8%) 234(1%)   765     175    618(3%)  1,962(9%)
           (3%)  (1%)  (62%)                                          (4%)    (1%)
    175-foot coastal buoy tenders
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001    129     0 12,158     82(1%)    35(0%)    339(2%)   0(0%)    56  3 (0%)  1,202(9%)      7(0%)
           (1%)  (0%)  (87%)                                          (0%)
    2002     36     0 10,735      0(0%)        32      0(0%)   0(0%)   216 10 (0%) 3,389(23%)     21(0%)
           (0%)  (0%)  (74%)                                          (1%)
                                             (0%)
    2003    122    28 12,422    478(3%)    17(0%)      0(0%)   0(0%)     1     298 2,345(15%)    265(2%)
           (1%)  (0%)  (78%)                                          (0%)    (2%)
    2004      4     0 13,402    446(3%)    16(0%)      0(0%)   0(0%)   159     358  1,341(9%)     25(0%)
           (0%)  (0%)  (85%)                                          (1%)    (2%)
    2005    136     0 14,375    120(1%)    30(0%)      0(0%)   0(0%)    34     585    749(5%)     18(0%)
           (1%)  (0%)  (90%)                                          (0%)    (4%)
    160-foot/100-foot/75-foot inland construction tenders
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     19     1 12,929      0(0%)     3(0%)      0(0%)   0(0%)     0  0 (0%)    165(1%)      5(0%)
           (0%)  (0%)  (99%)                                          (0%)
    2002      4     0 13,430      0(0%)     0(0%)      0(0%)   0(0%)     0  9 (0%)  1,403(9%)     73(0%)
           (0%)  (0%)  (90%)                                          (0%)
    2003      2   119 13,896      0(0%)     0(0%)      0(0%)   0(0%)     0 97 (1%)  1,034(7%)      8(0%)
           (0%)  (1%)  (92%)                                          (0%)
    2004      5    41 13,510      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)  1,368(9%)     11(0%)
           (0%)  (0%)  (90%)                                          (0%)
    2005      1     0 17,272      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)  1,296(7%)     12(0%)
           (0%)  (0%)  (93%)                                          (0%)
    140-foot icebreaking tugs
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     52    57  2,031 4,064(55%)     0(0%)    316(4%)  13(0%)    47  0 (0%)    681(9%)    121(2%)
           (1%)  (1%)  (28%)                                          (1%)
    2002     93   166  1,071 1,174(21%)     0(0%)     33(1%)   0(0%)   158 12 (0%) 2,849(50%)     89(2%)
           (2%)  (3%)  (19%)                                          (3%)
    2003    273   158    952 4,770(43%)     0(0%)     19(0%)   0(0%)   120  0 (0%) 4,695(42%)     72(1%)
           (2%)  (1%)   (9%)                                          (1%)
    2004     84   264  1,081 3,749(35%)     0(0%)    343(3%)  84(1%)   283  0 (0%) 4,655(44%)     93(1%)
           (1%)  (2%)  (10%)                                          (3%)
    2005    159   116    732 2,866(30%)     0(0%)    602(6%) 133(1%)    27  7 (0%) 4,795(51%)     22(0%)
           (2%)  (1%)   (8%)                                          (0%)
    100-foot/65-foot inland buoy tenders
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     22     0  4,735       130%     3(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      1(0%)
           (0%)  (0%)  (99%)                                          (0%)
    2002      5    43  3,234      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)   363(10%)      7(0%)
           (0%)  (1%)  (89%)                                          (0%)
    2003     57     6  3,336      0(0%)     0(0%)      0(0%)   0(0%)    24  0 (0%)     84(2%)      0(0%)
           (2%)  (0%)  (95%)                                          (1%)
    2004      4    38  2,250      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (2%)  (98%)                                          (0%)
    2005      7    42  2,364      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (2%)  (98%)                                          (0%)
    75-foot river buoy tenders
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001      9     0 13,325      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)     78(1%)
           (0%)  (0%)  (99%)                                          (0%)
    2002     31     0 14,406      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)     14(0%)
           (0%)  (0%) (100%)                                          (0%)
    2003     10     1 15,022      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)     70(0%)     17(0%)
           (0%)  (0%)  (99%)                                          (0%)
    2004      1     0 12,109      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)     17(0%)
           (0%)  (0%) (100%)                                          (0%)
    2005      4     0 12,448      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)     17(0%)
           (0%)  (0%) (100%)                                          (0%)
    65-foot river buoy tenders
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001      6     0  6,389      2(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)     27(0%)      0(0%)
           (0%)  (0%)  (99%)                                          (0%)
    2002      8     0  6,087      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      6(0%)      4(0%)
           (0%)  (0%) (100%)                                          (0%)
    2003      5     0  6,385      9(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)     10(0%)     27(0%)
           (0%)  (0%)  (99%)                                          (0%)
    2004      1    14  6,771      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      8(0%)      3(0%)
           (0%)  (0%) (100%)                                          (0%)
    2005      2     0  6,671      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      4(0%)
           (0%)  (0%) (100%)                                          (0%)
    65-foot small harbor tugs
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     95   365  1,372 1,401(24%)   188(3%)     94(2%)   2(0%)   627  0 (0%) 1,345(23%)    369(6%)
           (2%)  (6%)  (23%)                                         (11%)
    2002     77   114  1,558    449(7%)     2(0%)     10(0%)   0(0%)   721  0 (0%) 3,795(56%)     83(1%)
           (1%)  (2%)  (23%)                                         (11%)
    2003     80    17    962 2,269(26%)     1(0%)      0(0%)   0(0%)   800  0 (0%) 4,695(53%)     28(0%)
                 (0%)  (11%)                                          (9%)
           (1%)
    2004     62    64    755 1,586(25%)     0(0%)     13(0%)   0(0%)   978  0 (0%) 2,823(45%)     22(0%)
           (1%)  (1%)  (12%)                                         (16%)
    2005     26   598  1,254 1,092(18%)   376(6%)    260(4%) 179(3%)     0  0 (0%) 2,043(34%)    162(3%)
           (0%) (10%)  (21%)                                          (0%)
    64-foot aids-to-navigation boats
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001      0     0  1,216      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2002      0     0    635      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2003      0     0    747      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2004      0     0    580      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2005      0     0  1,109      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    63-foot aids-to-navigation boat
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001      0     0    199      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2002      7     4     98      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (6%)  (4%)  (90%)                                          (0%)
    2003      0     0    179      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2004      0     0    195      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2005      0     0    197      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    55-foot aids-to-navigation boats
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001    100    17  4,182      0(0%)    12(0%)     53(1%)  12(0%)    19  0 (0%)     75(2%)      2(0%)
           (2%)  (0%)  (94%)                                          (0%)
    2002    155    80  3,985      0(0%)     0(0%)     35(1%)   0(0%)    24  0 (0%)    301(7%)      0(0%)
           (3%)  (2%)  (87%)                                          (1%)
    2003     45     0  3,820      0(0%)     9(0%)     20(0%)   0(0%)   320  0 (0%)   970(19%)     13(0%)
           (1%)  (0%)  (74%)                                          (6%)
    2004     45     5  3,643      0(0%)     0(0%)      0(0%)   0(0%)   211  0 (0%)     89(2%)      3(0%)
           (1%)  (0%)  (91%)                                          (5%)
    2005    196     0  4,338      0(0%)     0(0%)      0(0%)   0(0%)     0 80 (2%)     86(2%)      0(0%)
           (4%)  (0%)  (92%)                                          (0%)
    49-foot stern loading buoy boats
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     23     0  9,477      8(0%)     0(0%)      0(0%)   4(0%)    17  0 (0%) 1,373(13%)      0(0%)
           (0%)  (0%)  (87%)                                          (0%)
    2002     18    14  6,863      3(0%)     0(0%)      0(0%)   0(0%)    30  0 (0%)    638(8%)      0(0%)
           (0%)  (0%)  (91%)                                          (0%)
    2003      5     8  8,079     11(0%)     0(0%)      0(0%)   0(0%)    14  0 (0%)    852(9%)     94(1%)
           (0%)  (0%)  (89%)                                          (0%)
    2004      7     0  7,883     26(0%)     0(0%)      0(0%)   0(0%)    18  0 (0%)    283(3%)     31(0%)
           (0%)  (0%)  (96%)                                          (0%)
    2005     18     0  6,588     19(0%)     9(0%)      0(0%)   0(0%)     0  0 (0%)    233(3%)      0(0%)
           (0%)  (0%)  (96%)                                          (0%)
    45-foot buoy boats
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001      0     0  1,024      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2002      0     0    494      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2003      0     0    248      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2004      0     0    373      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    2005      0     0    526      0(0%)     0(0%)      0(0%)   0(0%)     0  0 (0%)      0(0%)      0(0%)
           (0%)  (0%) (100%)                                          (0%)
    21-foot trailerable aids-to-navigation boats
            SAR    MS   ATON    Ice ops       MEP        LMR    Drug Other Migrant       PWCS    Defense
                                                                        LE
    2001     48     9 25,429      0(0%)    12(0%)      1(0%)   1(0%)    64  0 (0%)    401(2%)      2(0%)
           (0%)  (0%)  (98%)                                          (0%)
    2002     23     2 23,798      0(0%)     0(0%)      0(0%)   0(0%)    79  7 (0%)        590      0(0%)
           (0%)  (0%)  (97%)                                          (0%)
                                                                                         (2%)
    2003     55     4 20,961      0(0%)     0(0%)      0(0%)   0(0%)    29  4 (0%)    687(3%)      7(0%)
           (0%)  (0%)  (96%)                                          (0%)
    2004     52    12 22,616      0(0%)     0(0%)      0(0%)   0(0%)    62  0 (0%)   1347(6%)      7(0%)
           (0%)  (0%)  (94%)                                          (0%)
    2005     89     0 20,105      0(0%)     5(0%)      0(0%)  26(0%)     0  0 (0%)    407(2%)      0(0%)
           (0%)  (0%)  (97%)                                          (0%)

    Source: GAO analysis of Coast Guard data.

    Notes: Due to rounding, percentages may not add to 100 percent for each
    fiscal year.

    The Coast Guard's mission categories are as follows: SAR: Search and
    Rescue MS: Marine Safety ATON: Aids-to-Navigation Ice ops: Ice operations
    such as domestic icebreaking MEP: Marine Environmental Protection LMR:
    Living Marine Resources Drug: Illegal Drug Interdiction Migrant: Migrant
    Interdiction Other LE: Foreign Fisheries Enforcement PWCS: Ports,
    Waterways, and Coastal Security Defense: Defense Readiness

    Appendix III: Condition Measure of ATON
    and Domestic Icebreaking Assets, Fiscal Years 2000 to 2005

    Condition Measure for ATON and Domestic Icebreaking Cutters

    Appendix III provides information on the condition of the Coast Guard's
    ATON and domestic icebreaking assets. The Coast Guard's key summary
    measure of condition-percent of time free (POTF)-of major casualties shows
    a mixed picture of condition for ATON and domestic icebreaking cutters.
    However, the measure captures only major equipment casualties, which
    degrade mission capabilities but does not capture minor equipment
    casualties that may also degrade mission capabilities. As such, this
    measure may underestimate the decline in asset condition. The Coast Guard
    has acknowledged the limitations of this measure and is working on a
    replacement for it. Because the Coast Guard is in the process of
    developing a new condition metric and did not have fiscal year 2005 data
    available, our analysis covers fiscal years 2000 through 2004. See table 9
    for individual POTF figures for the ATON and domestic icebreaking cutter
    assets for fiscal years 2000 through 2004.

    Table 9: Percent of Time Free of Major Casualties for ATON and Domestic
    Icebreaking Cutters, Fiscal Years 2000 through 2004

    Fiscal year                                      POTF
    225-foot seagoing buoy tenders
    2000                                              100
    2001                                               16
    2002                                               49
    2003                                               80
    2004                                               55
    175-foot coastal buoy tenders
    2000                                               86
    2001                                               78
    2002                                               64
    2003                                               66
    2004                                               65
    160-foot/100-foot/75-foot inland construction tenders
    2000                                               86
    2001                                               53
    2002                                               67
    2003                                               52
    2004                                               59
    140-foot icebreaking tugs
    2000                                               69
    2001                                               50
    2002                                               67
    2003                                               45
    2004                                               47
    100-foot/65-foot inland buoy tenders
    2000                                               97
    2001                                               97
    2002                                               91
    2003                                               87
    2004                                               69
    75-foot river buoy tenders
    2000                                               92
    2001                                               86
    2002                                               77
    2003                                               83
    2004                                               71
    65-foot river buoy tenders
    2000                                              100
    2001                                               71
    2002                                               75
    2003                                               90
    2004                                               89
    65-foot small harbor tugs
    2000                                               89
    2001                                               70
    2002                                               83
    2003                                               76
    2004                                               82

    Source: U.S. Coast Guard.

    Condition Measure for ATON Boats

    The Coast Guard has less data for ATON boats, with POTF figures available
    for only fiscal year 2005. Based on these figures most boats appear to be
    in fair to poor condition. In addition to these figures, the Coast Guard
    has performed an internal assessment of condition using two approaches,
    one for standard and another for nonstandard boats. For standard boats the
    Coast Guard assessed condition through a process referred to as ship
    structure and machinery evaluation boards (SSMEB). While, for nonstandard
    boats the Coast Guard assessed condition by obtaining anecdotal evidence
    from district managers, maintenance managers, annual boat inspection
    reports, and site visits. This internal assessment, however, seems to
    further support our original finding that the Coast Guard's POTF figure
    may be underestimating condition. As you will see in table 10 below, while
    the 45-foot buoy boat and 21-foot trailerable aids-to-navigation boat had
    POTF percentages above 90 percent, their internal assessment of condition
    was rated at poor.

    Table 10: Condition of ATON Boats as Evidenced by POTF and Internal Coast
    Guard Assessment

                                               POTF for FY Coast Guard assessment
    Asset                                          2005 of condition
    Standard boats
    55-foot aids-to-navigation boat               90.1% Fair
    49-foot buoy stern loading boat               88.1% Good
    Nonstandard boats
    64-foot aids-to-navigation boat               88.6% Good
    63-foot aids-to-navigation boat               79.5% Fair
    45-foot buoy boat                             97.1% Poor
    21-foot trailerable aids-to-navigation        90.7% Poor
    boat

    Source: U.S. Coast Guard.

    Appendix IV: Maintenance Trends of ATON
    Cutter and Domestic Icebreaking Assets, Fiscal Years 2001 to 2005

    Maintenance Trends

    Appendix IV provides information on the maintenance costs spent on the
    Coast Guard's ATON cutter and domestic icebreaking assets during fiscal
    years 2001 to 2005. Maintenance cost data for domestic icebreakers and
    ATON cutters shows a consistent increasing trend. The cost figures are
    broken out by scheduled (planned maintenance), unscheduled (unforeseen
    maintenance), and Engineering Logistic Center (ELC) (fleetwide projects
    that require engineering assistance) amounts, which allow for a more
    specific analysis as to the type of increase being incurred. Table 11
    shows the individual maintenance cost data, adjusted for inflation using
    2005 dollars, for ATON cutters and domestic icebreakers for fiscal years
    2001 through 2005.

    Table 11: Maintenance Costs for ATON Cutters and Domestic Icebreakers,
    Fiscal Years 2001 through 2005

                                                                       Total (scheduled,
                              Fiscal Unscheduled  Scheduled            unscheduled, ELC)
    Cutter Type                 year        cost       cost   ELC cost              cost
    225-foot seagoing buoy      2001    $197,500 $2,300,492 $1,057,645        $3,555,637
    tenders                     2002    605,637   3,372,110   2,868,107  6,845,853
                                2003    798,994   5,167,818   1,625,370  7,592,182
                                2004    914,750   5,703,552   2,946,798  9,565,099
                                2005  4,313,387   6,715,405   2,631,631 13,660,422
    175-foot coastal buoy       2001     246,665  3,288,053    294,868         3,829,585
    tenders                     2002    316,694   7,054,995     821,725  8,193,414
                                2003    806,494   7,490,459     674,800  8,971,752
                                2004    591,828   5,141,464     495,708  6,229,000
                                2005    555,245   2,672,709   1,014,257  4,242,210
    160-foot/100-foot/75-foot   2001     124,735  1,943,315    343,346         2,411,396
    inland construction         2002    366,968   2,889,575     192,786  3,449,329
    tenders                     2003    251,036   3,781,760   1,366,811  5,399,607
                                2004    356,726   3,966,089   3,318,928  7,641,742
                                2005    437,112   2,605,441   8,316,939 11,359,492
    100-foot/65-foot inland     2001      39,425    554,900      9,970           604,295
    buoy tenders                2002     14,219     595,933       6,391    616,543
                                2003     35,661     813,977      94,620    944,258
                                2004     94,856   1,168,921      17,748  1,281,525
                                2005     81,453     177,082      63,294    321,828
    140-foot icebreaking tugs   2001     343,902  1,885,671    192,131         2,421,703
                                2002    190,010   2,789,443     206,031  3,185,483
                                2003    225,959   1,748,739     850,783  2,825,481
                                2004    344,080   2,954,156   1,245,042  4,543,277
                                2005    449,911   3,339,509   1,258,332  5,047,752
    75-foot river buoy          2001     102,701  2,587,246          0         2,689,947
    tenders                     2002    308,977   1,808,732           0  2,117,709
                                2003    141,748   1,309,262           0  1,451,010
                                2004    259,143   1,591,882       6,870  1,857,895
                                2005    355,520   2,122,927      50,251  2,528,697
    65-foot river buoy          2001      77,169    387,648          0           464,816
    tenders                     2002     81,662   2,140,323       3,031  2,225,017
                                2003     80,862   1,449,003      30,480  1,560,344
                                2004    127,692     904,538           0  1,032,230
                                2005     55,117     343,930      69,701    468,748
    65-foot small harbor tugs   2001     100,009    724,359     46,244           870,612
                                2002     36,852   1,086,856      95,173  1,218,882
                                2003     81,196   1,056,155     136,783  1,274,133
                                2004    125,441   1,098,967      83,688  1,308,096
                                2005    110,001   1,136,472       9,919  1,256,392

    Source: GAO analysis of Coast Guard data.

    Note: The numbers presented in this table have been adjusted for inflation
    using 2005 dollars.

    Appendix V: GAO Contact and Staff Acknowledgments

    GAO Contact

    Stephen L. Caldwell, Acting Director, Homeland Security and Justice
    Issues, (202) 512-9610, or CaldwellS@gao.gov .

    Acknowledgments

    In addition to the above, individuals making key contributions to this
    report include Chuck Bausell, Melanie Brown, Steve Calvo, Michele Fejfar,
    Geoffrey Hamilton, Christopher Hatscher, Stephanie Sand, Stan Stenersen,
    Gladys Toro, and Friendly Vang-Johnson.

    Related GAO Products

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    (440442)

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    www.gao.gov/cgi-bin/getrpt? GAO-06-979 .

    To view the full product, including the scope
    and methodology, click on the link above.

    For more information, contact Stephen L. Caldwell at (202) 512-9610 or
    caldwells@gao.gov.

    Highlights of GAO-06-979 , a report to the Subcommittee on Fisheries and
    Coast Guard, Committee on Commerce, Science, and Transportation, U.S.
    Senate

    September 2006

    COASTGUARD

    Condition of Some Aids-to-Navigation and Domestic Icebreaking Vessels Has
    Declined; Effect on Mission Performance Appears Mixed

    The marine transportation system is a critical part of the nation's
    infrastructure. To facilitate the safety and efficiency of this system,
    the Coast Guard maintains aids-to-navigation (ATON), such as buoys and
    beacons, and conducts domestic icebreaking in the Great Lakes, St.
    Lawrence Seaway, and northeast coast. To conduct these missions, the Coast
    Guard has a fleet of more than 200 vessels, ranging from 225-foot seagoing
    buoy tenders and 140-foot domestic icebreakers to 21-foot boats. After the
    terrorist attacks of September 11, 2001, many of these assets took on
    additional responsibilities for security patrols and other homeland
    security duties. Although some assets have been recently acquired, many
    others are reaching or have exceeded their design service lives, raising
    concerns about how well and for how much longer these older assets may be
    able to carry out their missions. In response, GAO examined (1) recent
    trends in the amount of time these assets have spent performing missions;
    (2) asset condition and its effect on mission performance; and (3) the
    actions taken by the Coast Guard to continue to achieve the missions of
    these assets.

    To conduct this work, GAO reviewed Coast Guard documents, interviewed
    Coast Guard officials, and made site visits to various locations around
    the country.

    In commenting on a draft of this report, the Coast Guard provided
    technical comments, which were incorporated as appropriate.

    Many ATON vessels and domestic icebreakers have operated more hours in
    recent years than in previous years, with the increase coming mainly in
    homeland security missions. Domestic icebreakers are now used more for
    homeland security than for icebreaking, reflecting their availability at
    times of the year when no icebreaking is needed. While not designed for
    homeland security, the assets can perform such duties acceptably,
    according to the Coast Guard. Most ATON vessels are used primarily for
    ATON activities. Newer ATON assets receive the greatest use on other
    missions, reflecting their greater multi-mission capabilities.

    Trends are mixed with regard to asset condition and mission performance.
    Available evidence, such as the amount of maintenance conducted, suggests
    condition is declining for some assets, though not precipitously. Coast
    Guard officials said some assets, while being operated for more hours, are
    still largely being operated within planned limits. Against this backdrop,
    indicators for measuring performance show mixed results: some have
    declined, while others have not. The current measure for asset condition
    is not clearly linked to mission performance, but the Coast Guard is
    working on developing a measure that links the two.

    Actions the Coast Guard has taken to continue to achieve the missions of
    these assets include revising maintenance approaches and developing a new
    analytical tool for deciding which projects provide the most capability
    for the dollars invested. The Coast Guard continues to acquire some new
    vessels to replace aging ones, but proposals to rehabilitate or replace
    other aging vessels have not been implemented, largely because of other
    funding priorities. The Coast Guard also studied the feasibility of
    contracting out some activities. While some possibilities for outsourcing
    were identified in the study, the Coast Guard has identified potential
    disadvantages to outsourcing these activities.

    Coast Guard Buoy Tender (left) and Domestic Icebreaker (right)
    *** End of document. ***