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LCD-77-107 1 (1977-10-27)

handle is hein.gao/gaobaawgh0001 and id is 1 raw text is: I' DOCUIE RESUME 04146 - f B30142901 (lRestricted) - Maritime Administration's Satellite Communications Progam: Is it Still Needed? LCD-77-107; B-18610C. October 27, 1977. 31 pp. + 3 appendices (7 pp.). Report to Rep. Jack Brooks, Chairman, Bouse Committee cn Government Operations; by Robert F. heller, Acting Comptroller teneral. Issue Area: Federal Procurement of Goods and Services (1900). Contact: Logistics and Communications Di-. Budqet Function: Commerce and Transportation: Water Transportation (4C). orqanization Concerned: Computer Sciences Ccrp.; Marlitime Ad minis _.Za tion. Conqressional Relevance: House Committee on Government Opera tions. Authlority: Merchant marine Act of 19.6 (49 Stat. 1985). The Maritime Administration needs to identify and demonstrate specific benefits that exceed the Govern-ent's costs for continuinq the satellite communications services offered shippers. The continuing development of maritime satrllite communications-rclated technology by the Maritime Administration is questionable Lecause thi technology is now available commercially. Findings/Conclusions: Many ship,:ing companies have stated that the costs for procuring, installing, and op'erating shipboard satellite communications equipment are too hilh for them to independently finance these cFerations, especially since it has not been demonstrated that the pctential benefits of satellite communicaticns and related data processiny coull offset these costs. Recommendations: The Seczetary ci Commerce should direct che Assistant Secretary fox Maritime Aifaiis to: undertake a cost-benefit enalysis of the satellite proqraa to determine the value to the U.S. shipiing industry oi using the satellite communications and the available fleet manaqement computer proqraws; demonstrate these benetits tc the shippinq industry if they can be shohn to offset the equivalent commercial or Government cozts for these services; ccrrect promptly manaqcment deficiencies with emphasis on the development ot and adherence to a master plan and zequiaite manaqement controls and the method by waich the Kings Point Center's functions can be turned over to private industry; and terminate the satellite prcgram unless the first two- recommendations can be fully achieved. (Author/SC)

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