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 <subject>Aircraft</subject>
 <subject>Contract administration</subject>
 <subject>Cost control</subject>
 <subject>Federal procurement</subject>
 <subject>Ships</subject>
 <subject>Coast Guard: Deepwater Capability</subject>
 <subject>Replacement Project</subject>
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<titleInfo>
 <title>Coast Guard: Progress Being Made on Deepwater Project, but Risks Remain</title>
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<abstract>The Coast Guard is in the final stages of planning the largest
procurement project in its history-the modernization or 	 
replacement of more than 90 cutters and 200 aircraft used for	 
missions beyond 50 miles from shore. This project, called the	 
Deepwater Capability Replacement Project, is expected to cost	 
more than $10 billion and take 20 years or longer to complete.	 
Congress and the Coast Guard are at a major crossroads with the  
Deepwater Project. Planning for the project is essentially	 
complete, and Congress will soon be asked to commit to a	 
multibillion-dollar project that will define the way the Coast	 
Guard performs many of its missions for decades to come. The	 
deepwater acquisition strategy is unique and untried for a	 
project of this magnitude. It carries many risks which could	 
potentially cause significant schedule delays and cost increases.
The Deepwater Project faces risks in the following four areas:	 
(1) planning the project around annual funding levels far above  
what the administration has told the Coast Guard it can expect to
receive, (2) keeping costs under control in the contract&apos;s later 
years, (3) ensuring that procedures and personnel are in place	 
for managing and overseeing the contractor once the contract is  
awarded, and (4) minimizing potential problems with developing	 
unproven technology. All of these risks can be mitigated to	 
varying degrees, but not without management attention.</abstract>
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 <topic>Cost control</topic>
 <topic>Federal procurement</topic>
 <topic>Ships</topic>
 <topic>Coast Guard: Deepwater Capability</topic>
 <topic>Replacement Project</topic>
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  <title>United States Public Law 277 (105th Congress)</title>
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 <identifier type="public law citation">Public Law 105-277</identifier>
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  <title>United States Public Law 181 (106th Congress)</title>
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 <identifier type="public law citation">Public Law 106-181</identifier>
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