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CED-81-128 1 (1981-06-25)

handle is hein.gao/gaobabcpf0001 and id is 1 raw text is: UNIl 6D STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 IIC7 L COMMUNITY AND ECONOMIC OEVELOPMENT DIVISION June 25, 1981 B-203758 RESTRICTED - No to be released outside th General AcEcUS Cg 0 - Not Pt on the basis of spcfli approval Acounig ofc e0xgOstsional nelatioD16 The Honorable E (Kika) la~Garza House of Representatives ELMD Dear Mr. de la Garza: 116764 Subject: Lnformation on th :U.S. Coast Guard's Decision To Purchase t-b M/V Cowslip Vesse j (CED-81-128) Your letter dated February 23, 1981, requested that we review the Coast Guard's decision to purchase a buoy tender--the M/V Cowslip--as opposed to a second vessel that was available for purchase--the M/V Woodbine. The Cowslip was purchased to replace the USCGC Blackthorn, a Coast Guard vessel which sank in Tampa Bay, Florida, in February 1980. We have reviewed the Coast Guard's decision to purchase the Cowslip and found no basis to conclude that the purchase decision was improper. However, the Coast Guard relied on its own assess- ments of the relative conditions of both vessels. These assess- ments were not verified by a separate Coast Guard in-house assess- ment or by commercial vessel surveyors. Furthermore, cost compari- sons developed by the Coast Guard and used in the purchase decision were based on cost estimates provided by the Coast Guard's Office of Engineering and were not independently verified. The final decision to purchase the Cowslip was approved by the Assistant Secretary for Administration, Department of Transportation. In conducting our work we reviewed Coast Guard vessel inspec- tion reports and purchase, renovation, and repair cost data used in evaluating the relative merits of the two vessels and arriving at the purchase decision. We met with and held discussions with Coast Guard officials who (1) performed the vessel inspections, (2) developed the cost data used in making the purchase decision, and (3) made the decision to purchase the Cowslip. We also held discussions with Department of Transportation officials involved in the purchase decision. Our work was conducted at Coast Guard and Department of Transportation headquarters in Washington, D.C. BACKGROUND In seeking a replacement for the Blackthorn, the Coast Guard determined that the Cowslip and Woodbine were the only 180-foot- long buoy tender vessels available at that time for purchase and asked that the vessel owners provide an asking price. Earlier, (089169)

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