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GAO-08-270R 1 (2008-03-11)

handle is hein.gao/gaocrptawfv0001 and id is 1 raw text is: SpGAO Accountability * Integrity * Reliability United States Government Accountability Office Washington, DC 20548 March 11, 2008 The Honorable Maria Cantwell Chair Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard Committee on Commerce, Science and Transportation United States Senate The Honorable Olympia J. Snowe Ranking Member Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard Committee on Commerce, Science and Transportation United States Senate Subject: Status of Selected Aspects of the Coast Guard's Deepwater Program The Coast Guard is in the midst of the largest acquisition program in its history-one that has experienced serious performance and management problems. The Deepwater program is intended to replace or modernize the Coast Guard's fleet of vessels, aircraft, and information management capabilities in order to carry out its missions along our coastlines and farther out at sea. Deepwater incorporates acquisition of 15 major classes of new or upgraded assets-5 major classes each of vessels and aircraft, and 5 other projects, including command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems. To carry out this acquisition, the Coast Guard contracted with a system integrator, Integrated Coast Guard Systems (ICGS). Since 2001, we have reviewed the Deepwater program and have informed Congress, the Department of Homeland Security (DHS), and the Coast Guard of the risks and uncertainties inherent with such a large acquisition. In March 2004, we made recommendations to the Coast Guard to address three broad areas of concern: improving program management, strengthening contractor accountability, and promoting cost control through greater competition among potential subcontractors.' In April 2006 and June 2007, we issued follow-on reports describing efforts the Coast Guard had taken to address the recommendations. You asked us to determine (1) how decisions are made regarding whether to purchase assets under the contract with ICGS or directly with another vendor; (2) the costs and performance trade-offs, if any, associated with the Coast Guard's '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) GAO-08-270R Deepwater Program

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