The Coast Guard will take over the role of lead systems integrator for
the $24 billion Deepwater acquisition program to enhance management and
oversight, Coast Guard Commander Admiral Thad Allen said today.
The lead systems integrator role since 2002 has been held by a joint
venture of federal contractors Lockheed Martin and Northrop Grumman.
The multiyear acquisition program seeks to modernize Coast Guard
vessels and systems.
Allen, who took command of the Coast Guard a year ago, said the massive
Deepwater program has relied too much on federal contractors.
“We’ve relied too much on contractors to do the work of government as a
result of tightening budgets, a dearth of contracting expertise in the
federal government, and a loss of focus on critical governmental roles
and responsibilities in the management and oversight of acquisition
programs,” Allen said at a news conference.
“Both industry and government have failed to accurately predict and control costs. We must improve,” he said.
Under the new strategy, the Coast Guard will assume the lead role as
systems integrator for all Deepwater assets, as well as other major
acquisitions, Allen said. Allen did not provide a schedule for the
change, but said he was adding Coast Guard staff members as part of the
service's fiscal 2008 budget request.
Other steps to improve Deepwater announced by Allen include:
The
Coast Guard will permanently decommission the eight 123-foot patrol
boats converted under the Deepwater program because of extensive
structural problems.
The service will take charge of managing life cycle logistics functions
in the Deepwater program under an improved logistics architecture with
the new mission-support organization.
The Coast Guard will expand the role of the American Bureau of
Shipping, or other third-parties as appropriate, to evaluate whether
Deepwater assets are properly designed and constructed.
The service will work collaboratively with Lockheed Martin and Northrop
Grumman to resolve issues regarding the national security cutters.
The Coast Guard may continue some Deepwater asset production with
Lockheed Martin and Northrop Grumman, to be determined on a
case-by-case basis.
Allen plans to meet quarterly with industry until all Deepwater program
issues are fully adjudicated and resolved. The next meeting is to be
held within a month.
Allen said he met with Lockheed Martin Chief Executive Officer Robert
Stevens and Northrop Grumman CEO Ronald Sugar in January to review
Deepwater, and some improvements have been made since then. Allen said
the three executives reached agreement on the actions announced today.
Allen said he also is making far-reaching changes to acquisition at the
Coast Guard. By the end of 2010, there will be a new mission support
organization in the service that will provide “seamless support,” he
said.
Alice Lipowicz writes for Washington Technology, an 1105 Government Information Group publication.
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