Coast Guard: Coast Guard Efforts to Improve Management and	 
Address Operational Challenges in the Deepwater Program 	 
(14-FEB-07, GAO-07-460T).					 
                                                                 
The Coast Guard's Deepwater program is a 25-year, $24 billion	 
plan to replace or modernize its fleet of vessels and aircraft.  
While there is widespread acknowledgment that many of the Coast  
Guard's aging assets need replacement or renovation, concerns	 
exist about the acquisition approach the Coast Guard adopted in  
launching the Deepwater program. From the outset, GAO has	 
expressed concern about the risks involved with the Coast Guard's
acquisition strategy, and continues to review Deepwater program  
management. This statement discusses (1) the Coast Guard's	 
acquisition approach for the Deepwater program; (2) previous GAO 
recommendations to the Coast Guard on Deepwater, highlighting the
importance of Integrated Product Teams; and (3) operational	 
challenges the Coast Guard is facing because of performance and  
design problems with Deepwater patrol boats.			 
-------------------------Indexing Terms------------------------- 
REPORTNUM:   GAO-07-460T					        
    ACCNO:   A65929						        
  TITLE:     Coast Guard: Coast Guard Efforts to Improve Management   
and Address Operational Challenges in the Deepwater Program	 
     DATE:   02/14/2007 
  SUBJECT:   Aircraft						 
	     Cost control					 
	     Equipment upgrades 				 
	     Military forces					 
	     Military procurement				 
	     Performance measures				 
	     Procurement planning				 
	     Program evaluation 				 
	     Program management 				 
	     Risk assessment					 
	     Schedule slippages 				 
	     Ships						 
	     Source selection					 
	     Strategic planning 				 
	     Systems design					 
	     Technology modernization programs			 
	     Coast Guard Deepwater Project			 
	     Coast Guard Integrated Deepwater System		 
	     Fast Response Cutter				 

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GAO-07-460T

   

     * [1]Summary
     * [2]Background
     * [3]Coast Guard's Acquisition Approach to Deepwater Program

          * [4]System of Systems
          * [5]System Integrator
          * [6]Performance-based Acquisition
          * [7]Deepwater Indicative of Broader, Systemic Acquisition Challe

     * [8]Previous GAO Recommendations Have Focused on Three Areas

          * [9]Program Management and the Importance of Integrated Product
          * [10]Contractor Accountability
          * [11]Cost Control through Competition
          * [12]Coast Guard Efforts Related to GAO Recommendations

     * [13]Performance and Design Problems Creating Operational Challen

          * [14]Performance Problems with the Converted 123-Foot Pat
          * [15]Design Problems with the Fast Response Cutter

     * [16]Contacts and Acknowledgements
     * [17]GAO's Mission
     * [18]Obtaining Copies of GAO Reports and Testimony

          * [19]Order by Mail or Phone

     * [20]To Report Fraud, Waste, and Abuse in Federal Programs
     * [21]Congressional Relations
     * [22]Public Affairs

Testimony

Before the Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard,
Committee on Commerce, Science and Transportation, U.S. Senate

United States Government Accountability Office

GAO

For Release on Delivery Expected at 2:30 p.m. EST

Wednesday, February 14, 2007

COAST GUARD

Coast Guard Efforts to Improve Management and Address Operational
Challenges in the Deepwater Program

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

GAO-07-460T

Thank you for inviting me here today to discuss our reviews of the U.S.
Coast Guard's $24 billion Deepwater program. .

           o the Coast Guard's acquisition approach for the Deepwater
           program;

           o previous GAO recommendations to the Coast Guard on Deepwater,
           highlighting the importance of Integrated Product Teams; and

           o operational challenges the Coast Guard is facing because of
           performance and design problems with Deepwater patrol boats.

.

^1 GAO, Coast Guard: Progress Being Made on Deepwater Project, but Risks
Remain, GAO-01-564 (Washington, D.C.: May 2, 2001).

^2 GAO, Contract Management: Coast Guard's Deepwater Program Needs
Increased Attention to Management and Contractor Oversight, GAO-04-380
(Washington, D.C.: Mar. 9, 2004).

Summary

system-of-systems approach to replace deteriorating assets with a single,
integrated package of aircraft, vessels, and unmanned aerial vehicles, to
be linked through systems that provide command, control, communications,
computer, intelligence, surveillance, and reconnaissance (C4ISR), and
supporting logistics. thus . The Coast Guard also used a system
integrator--which can give the contractor extensive involvement in
requirements development, design, and source selection of major system and
subsystem subcontractors.

. We recommended that, among other things, Coast Guard improve the IPTs by
initiating actions to establish timely charters and training. . Thus, one
recommendation we made for improving contractor accountability was to
devise a time frame for measuring the contractor's progress toward
improving operational effectiveness. . Consequently, we recommended that
Coast Guard develop a plan to hold the contractor accountable for ensuring
adequate competition among suppliers.

*** End of document. ***