Chairman Cummings: Deepwater Must Change Course

Date: Jan. 30, 2007
Location: Washington, DC


Chairman Cummings: Deepwater Must Change Course

Today, Congressman Elijah E. Cummings (D-MD), Chairman of the Subcommittee on Coast Guard and Maritime Transportation, convened the Subcommittee's first hearing of the 110th Congress - an oversight hearing that examined the Coast Guard's troubled Deepwater procurement program. Deepwater is a series of ship and aircraft procurements expected to cost $24 billion and require 25 years to complete.

The Subcommittee heard testimony from U.S. Coast Guard Commandant, Admiral Thad Allen; Dr. Leo Mackay, President of Integrated Coast Guard Systems; and Mr. Phillip Teel, President of Northrop Grumman Ship Systems. The Subcommittee also considered the findings of a report released by the Department of Homeland Security's Office of Inspector General (DHS IG), which indicated that the National Security Cutter (NSC), the largest asset to be procured under Deepwater, suffers from extensive design flaws that will likely reduce its service life.

Chairman Cummings said, "The DHS IG's report presents unacceptable findings about the procurement of the NSC that suggest the Coast Guard and its partners knowingly built a ship with a flawed design that will now require expensive repairs and may still not meet the service requirements of the Deepwater contract. This latest problem - coming on the heels of the failure of the 123-foot patrol boat and the problems that have accompanied the design of the Fast Response Cutter - demands that the Coast Guard take immediate action to correct this procurement before any more taxpayer money is wasted.

"I am encouraged that the Coast Guard has agreed to implement the recommendations of the DHS IG, and I am also encouraged that the Coast Guard has agreed to take the advice of the Committee on Transportation and Infrastructure and competitively bid the contract for the development of the Fast Response Cutter. I am hopeful that such competition will yield more successful results than we have seen with the development of the 123-foot patrol boats and the NSC.

"The bottom line, however, is that the Deepwater procurement is not meeting its goals and is not developing assets that fully meet the requirements of the Deepwater contract or, apparently, applicable technical standards. Right now, Deepwater is headed for the rocks - but we are going to make sure that all the parties to this effort can come together to change its course immediately.

"Through Deepwater, the Coast Guard is procuring the equipment that it will be using for decades to come to conduct its critical missions ensuring the safety and security of the American people, our domestic ports, and our maritime industry. We convened today's hearing to demand accountability from the Coast Guard and its private sector partners and to hear from them what they will be doing to ensure that Deepwater produces reliable assets that will serve the needs of the men and women in the Coast Guard who are everyday risking their lives in our nation's service.

"Under the leadership of Admiral Allen, the Coast Guard appears ready to take the steps necessary to assert its authority over Deepwater and meet the expectations of Congress for this program. Our Subcommittee will continue to exercise diligent oversight over Deepwater, and to that end, we have asked the Admiral as well as both Lockheed Martin and Northrop Grumman to prepare to appear before the Subcommittee again in 120 days to report on the steps they have taken to respond to the DHS IG's report and to provide us with an update on the on-going procurements under Deepwater.

"I am convinced that the Coast Guard and its partners have the ability to correct the problems we have experienced in Deepwater - and we will work closely with them as they now implement the new systems and procedures necessary to turn their dedication into success."

http://www.house.gov/cummings/press/07jan30a.htm

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