US Coast Guard Integrated Deepwater Systems

Dec 2, 2000
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From WashingtonTechnology;
quote:

The Coast Guard would be required to terminate its Integrated Deepwater Systems contract with Lockheed Martin Corp. and Northrop Grumman Corp. when it expires in June under legislation submitted late last week by Sen. John Kerry (D-Mass.).

The remainder of the $24 billion contract should be competitively bid to avoid further delays and reduce waste. The value of the remainder of the contract was not immediately available, Kerry said.
Story at http://www.washingtontechnology.com/online/1_1/30297-1.html?topic=contract-awards
 

Mike Poirier

Member
Dec 31, 2004
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Hmmm... It doesnt sound like the program is being dismantled completely. Just it being re-bid competitively as the quote above said to avoid further waste and delay. Since there has been so much waste and fraud lately, I think this a positive; except for Lockheed Martin and Northrop.
 
Dec 2, 2000
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I don't know if it's so much waste and fraud as it is things simply costing more then anyone expected. Governments and government agencies aren't exactly renowned for being entirely realistic about this sort of thing, and the contractors can only do so much when the customer can't quite get his act together or even figure out exactly what he wants.

Whatever the case may be, the players in this game really need to sort out whatever needs to be sorted out and get on with the job. Much of the Coast Gaurd's fleet consists of some fairly old vessels which aren't in very good condition. They're doing their best with what they have. They always do, but you can only do so much when all of your ships and aircraft are just plain worn out.
 
Dec 2, 2000
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From WashingtonTechnology.com:

Congress moves to increase Deepwater oversight
quote:

In separate pieces of legislation to fund the Iraq war, both the House and Senate have included provisions to tighten oversight over procurement and require competition for portions of the Coast Guard’s $24 billion Integrated Deepwater Systems modernization program.

Both houses of Congress have passed Iraq war supplemental bills, and they are now scheduled for conference to reconcile the two bills.
Story at http://www.washingtontechnology.com/online/1_1/30377-1.html
 
Dec 2, 2000
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From The Washington Post:

Coast Guard To Take Over 'Deepwater'
quote:

The Coast Guard is taking control of its troubled $24 billion modernization program from Lockheed Martin and Northrop Grumman as part of a restructuring of the project, congressional sources confirmed yesterday.

The move comes during mounting criticism of the contract for the so-called Deepwater program that made a Lockheed-Northrop consortium "lead systems integrator" and gave it significant management powers. Critics said the contract gave the corporate team too much control and that the Coast Guard was lax in its oversight duties -- a combination they say led to a series of setbacks. Deployment of cutters and patrol boats produced so far has been delayed, the capabilities of some larger ships have been reduced, and costs have increased.
Story at http://www.washingtonpost.com/wp-dyn/content/article/2007/04/16/AR2007041601607.html

The Coast Gaurd Press Release:

STATEMENT BY ADM. THAD ALLEN on the converted 123-foot patrol boats and changes to the Deepwater acquisition program
quote:

WASHINGTON — Good morning, and thank you for being here today. I’d like to take the opportunity this morning to make three announcements regarding the Coast Guard’s Deepwater acquisition program:

First, I will announce the way ahead for our eight 123-foot patrol boats converted under the Deepwater program.

Next, I will outline six fundamental management principles we have begun to implement to change the course of Deepwater as a result of an agreement I reached recently with my counterparts from industry.

Finally, I will take a moment to go beyond the tyranny of the present to provide you with my vision of Deepwater three years from now as the Coast Guard begins to reinvent itself to remain “Always Ready”￾ to conduct our many missions.

I will then be happy to take a few questions, after which our Deepwater program executive officer, Rear Adm. Gary Blore; assistant commandant for engineering and systems, Rear Adm. Dale Gabel; and deputy assistant commandant for acquisition, Mr. Joe Milligan, will be available for any additional questions.

A significant step in changing the course of Deepwater is resolving outstanding issues within the program, so let me begin this morning by announcing my decision to permanently decommission the eight 123' patrol boats converted under the Deepwater program.
The rest of Admiral Thad Allen's statement can be read at https://www.piersystem.com/go/doc/786/154307/
 
Dec 2, 2000
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Now the Justice Department is getting in on the act! From Defence News.com:

U.S. Justice Department Investigating Deepwater
quote:

The U.S. Justice Department is investigating the Coast Guard’s $24 billion Deepwater modernization program amid concerns that prime contractors Lockheed Martin and Northrop Grumman ignored potential problems and the Coast Guard neglected to exert proper oversight of the pair.
Congressional representatives and spokesmen from the defense companies said April 18 that the department is examining the program, which has come under fire in the past two years for cost increases, delays, cancellations and design flaws.
“Justice is conducting its own inquiry into the matter,”￾ House Transportation Committee chairman James Oberstar, D-Minn., said during a hearing.
Story at http://www.defensenews.com/story.php?F=2698538&C=navwar
 
Dec 2, 2000
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From The Washington Post:

Coast Guard Seeks Deepwater Refund
quote:

The Coast Guard said yesterday that it will seek damages from Lockheed Martin and Northrop Grumman for eight failed patrol boats that have come to exemplify the problems with its $24 billion modernization effort.

The service is seeking a refund for a project to convert 110-foot patrol boats into 123-foot vessels as part of its so-called Deepwater program. The Coast Guard initially planned to upgrade 49 patrol boats but stopped in 2005 after eight had been completed and problems developed in their hulls and decks. At that time, the eight boats, converted at a cost of about $80 million, were put on restrictive duty that forbade them operating in waves higher than eight feet. Last year, after finding more problems, the Coast Guard took those eight boats out of service, and it recently said the boats could not be salvaged and would be scrapped.
Story at http://www.washingtonpost.com/wp-dyn/content/article/2007/05/17/AR2007051702282.html?nav=hcmoduletmv
 
Dec 2, 2000
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From Defence News.com:

USCG Commandant Marks Progress on Deepwater
quote:

Adm. Thad Allen, U.S. Coast Guard commandant, met in Pascagoula, Miss., in late May with the top executives of the Deepwater program. Northrop Grumman Chairman Ron Sugar and Lockheed Martin Chairman Bob Stevens joined Allen to tour the Bertholf, the first National Security Cutter.
Belying criticism of the new ship, Allen declared “the Bertholf is the best ‘first-of-class’ cutter that has ever been built.”￾
Story at http://www.defensenews.com/story.php?F=2802922&C=america
 
Dec 2, 2000
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From The Herald-Tribune:

Congressional panel chief seeks refund from Bollinger shipyard
quote:

The chairman of a congressional oversight committee has called for a Louisiana shipbuilder to return $100 million to the federal government for faulty renovations to U.S. Coast Guard patrol boats.

Federal contractors hired Bollinger Shipyards Inc. of Lockport to renovate 49 Coast Guard cutters by extending their length from 110 feet to 123 feet. The first eight boats the company produced were taken out of service when the frames cracked on their maiden voyages.
Story at http://www.heraldtribune.com/article/20070615/APN/706151903
 
Dec 2, 2000
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From GulfLive.com:

Northrop Grumman denies design flaws; test procedure cited
quote:

PASCAGOULA -- Northrop Grumman officials disputed a report that two National Security Cutters being constructed at the Pascagoula shipyard have serious design flaws.

Northrop Grumman spokesman Bill Glenn said the dispute between the company and Coast Guard is in interpreting test data from a computer model. Coast Guard spokesman Cmdr. Brendan McPherson agreed the dispute is technical in nature.

"We have a difference in opinion in the lifespan of the ships," McPherson said. "There is no question of the seaworthiness of the ships. The issue is not in the safety of the ships. They will do the job they are designed to do."
Story at http://www.gulflive.com/news/mississippipress/index.ssf?/base/news/1182075321327270.xml
 
Dec 2, 2000
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Coast Gaurd Press Release:

COAST GUARD ANNOUNCES NEW CONTRACT FOR INTEGRATED DEEPWATER SYSTEM PROGRAM
quote:

WASHINGTON-The Coast Guard today signed task orders on a recent contract modification for the Integrated Deepwater System (IDS) program. The task orders were issued to Integrated Coast Guard Systems (ICGS) of Rosslyn, Va. Changes to the contract that take effect June 25, 2007, address work to be completed during the next 43 months - June 2007 through January 2011 - under the IDS program. This new 43 month period of performance is referred to as "Award Term 1."
For the rest, go to https://www.piersystem.com/go/doc/786/162067/
 
Dec 2, 2000
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From Maritime Today:

Coast Guard Awards Deepwater Contract Under New Management
quote:

According to reports, the Coast Guard has awarded the first contract under its new management structure for the Deepwater program. The Coast Guard said in June that it would assume overall management duties for the troubled project, which includes a wide range of ships, aircraft and other systems.
More at http://www.maritimetoday.com/ShowStory.aspx?StoryID=208202
 
Dec 2, 2000
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From The Clarion Ledger.com:

Deepwater may get face-lift
quote:

WASHINGTON - The Coast Guard's ambitious plan to modernize its fleet would be overhauled by a bill the House is expected to approve today, which could jeopardize the lucrative contracts awarded to the shipbuilding industry in Pascagoula.

The bill would require the Coast Guard to use full and open competition for the procurement of ships and planes in the so-called Deepwater program. It also would set rigorous new standards for testing and certification of everything the Coast Guard buys, including the National Security Cutter under construction in Pascagoula.

A similar bill is pending in the Senate.
More at http://www.clarionledger.com/apps/pbcs.dll/article?AID=/20070731/BIZ/707310377/1005/biz

Comment: Even with the problems Deepwater is having, I have to wonder if the proposed cure is going to be worse then the disease. A guillotine is a sure "cure" for dandruff but the side effects....

Anyone have any insights on this?
 
Dec 2, 2000
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From The Orlando Sentinal:

Coast Guard seeks ship refunds
quote:

WASHINGTON - The discovery of faulty communications and navigation equipment on eight Coast Guard ships built by Lockheed Martin and Northrop Grumman signal a potentially wider problem for the agency's $24 billion fleet modernization.

The agency sent a letter to the companies -- from whom it seeks multimillion-dollar refunds -- outlining dozens of components on these ships that were problematic.

Lockheed previously said it would not be financially affected by the government's refund request because the faulty ships had structural, not equipment, problems -- meaning only Northrop was to blame.
For more, go to http://www.orlandosentinel.com/business/orl-faultyships0707aug07,0,7311452.story
 
Dec 2, 2000
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Coast Gaurd Press Release:

COAST GUARD AWARDS CONTRACT FOR THIRD NATIONAL SECURITY CUTTER
quote:

WASHINGTON - In a consolidated contractual action, the Coast Guard today awarded Integrated Coast Guard Systems $337 million for construction of the third national security cutter, along with $255 million for continuation of construction for the first two national security cutters. The combined award is the result of a successful negotiation between the government and industry, enabling these crucial new cutter projects to move forward.
Full press release at https://www.piersystem.com/go/doc/786/167626/

And from The Washington Post:

Cost of Coast Guard's Deepwater Project Rises Again
quote:

The Coast Guard said yesterday that two ships key to its modernization efforts are now expected to cost a combined $1.1 billion, an increase of about $255 million that will pay for extending their lifespans and making other improvements.

The 400-foot ships, known as national security cutters, are central to the Coast Guard's Deepwater program, a $24 billion effort to modernize and replace its ships, helicopters and planes.
Full story at http://www.washingtonpost.com/wp-dyn/content/article/2007/08/08/AR2007080802286.html

[Moderator's Note: Two threads addressing the same subject have been merged to form this one. MAB]
 
Dec 2, 2000
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From The Navy Times:

Shipyards improve CG cutter construction
quote:

Pascagoula, Miss. – With the Coast Guard and its contractors having settled on the price and design of the new National Security Cutters, Northrop Grumman is focusing on completing the first ship and improving building processes on the second.

Construction of the cutter Bertholf is 90 percent complete, according to the shipbuilder, and the ship is expected to sail for the first time in mid-November for builders trials.
For more, go to http://www.navytimes.com/news/2007/08/coastguard_cutter_construction_070830w/
 
Dec 2, 2000
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From The Navy Times:

New CG cutter sails for machinery trials
quote:

The Coast Guard’s first next-generation national security cutter, the Bertholf, put to sea Tuesday for the first time to test its engines and other systems, the Coast Guard announced.

The multi-day cruise marks the first time the ship has sailed under its own power; the 418-foot, 4,300-ton cutter, and the $24 billion Deepwater modernization program that produced it, have been criticized since before construction began in 2004.
For the rest, see http://www.navytimes.com/news/2007/12/coastguard_bertholf_sails_071207w/
 
Dec 2, 2000
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From The Navy Times:

Senate approves bill to reform Deepwater
quote:

WASHINGTON – The Senate has approved a bill aimed at reining in the Coast Guard’s troubled Deepwater program. The $24 billion program to modernize the agency’s aging fleet has been plagued by cost overruns, design flaws and lax oversight.
Brief story at http://www.navytimes.com/news/2007/12/ap_deepwater_071219/
 
Dec 2, 2000
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From SignOnSanDiego.com:

Coast Guard wants $96.1 million refund from Lockheed Martin, Northrop Grumman for faulty ships
quote:

WASHINGTON — Northrop Grumman and Lockheed Martin are open to negotiating a refund for faulty ships they provided the Coast Guard, but do not appear ready to fork over the $96.1 million the agency has requested.
The Coast Guard in May revoked its acceptance of eight 123-foot patrol boats due to hull buckling. A month later, problems were identified with other equipment and systems provided by Integrated Coast Guard Systems, a joint venture between Lockheed Martin Corp. and Northrop Grumman Corp.
For the rest, go to http://www.signonsandiego.com/news/business/20080108-1121-faultyships-lockheed-northrop.html
 
Dec 2, 2000
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From The Navy Times:

CG budget adds ships, personnel, upgrades
quote:

New vessels, helicopter fleet upgrades and emergency maintenance for its lesser-known inland fleet are some of the priorities in the Coast Guard’s $9.3 billion fiscal 2009 budget request, service officials said, as well as adding hundreds of new positions for operatives and watch-standers from the field level on up to the service’s acquisitions management department.

>snip<

Some of the biggest-ticket items on the Coast Guard’s list include $354 million for its fourth national security cutter; $115 million for three fast response cutters; just over $100 million for upgrades to 30 HH-65 and MH-60 helicopters; and $87 million for two HC-144 Ocean Sentry patrol planes.
Full story at http://www.navytimes.com/news/2008/02/coastguard_budgetrequest_080204w/