06.05.07

Cantwell Calls on Coast Guard to Begin Analysis of Alternatives for Deepwater

Third-party analysis of alternatives called for in Cantwell's Deepwater legislation; starting analysis now would prevent delays in getting new assets

WASHINGTON, DC – Tuesday, U.S. Senators Maria Cantwell (D-WA) and Olympia Snowe (R-ME) called on the Coast Guard to begin an analysis of alternatives for all future Deepwater assets not currently under contract. The analysis is a cornerstone of Cantwell’s comprehensive legislation to fix Deepwater, which the Senate Commerce Committee passed in April. The bill requires a third-party entity to analyze what assets the Coast Guard needs to complete its mission, determine how the Coast Guard can best acquire these assets, and review all proposed Deepwater assets for which contracts have not yet been issued. Under Cantwell’s legislation, the Coast Guard must complete this analysis before placing additional assets under contract.

"The legislative process takes time, and time is working against the Coast Guard in this instance," the senators wrote in a letter to Coast Guard Commandant Admiral Thad Allen. "New assets are vital to your ability to carry out your appointed missions, and we do not want to prevent those ships and aircraft from entering into service. But we cannot tolerate any more taxpayer dollars spent on inappropriate equipment. Therefore, we request that you immediately begin the process of contacting an independent third-party to conduct a thorough, comprehensive [analysis of alternatives] for the Deepwater program, as our legislation will require upon enactment."

The analysis of alternatives provision in Cantwell’s comprehensive Deepwater legislation:

  • Requires an analysis of alternatives of all proposed Deepwater assets not currently under contract before any additional assets are placed under contract. The review would be conducted by an independent third-party entity with expertise in major acquisitions and no financial conflict of interest.
  • Requires the Coast Guard to provide a plan to Congress for how to move forward with Deepwater procurements based on this review.
  • Requires a similar review for any major changes to the agreed upon plan.

For a full summary of Cantwell’s legislation, click here.

[The full text of the senators’ letter follows below]

June 5, 2007


Admiral Thad W. Allen
Commandant, United States Coast Guard
2100 Second Street SW
Washington, DC 20593
Dear Admiral Allen,

As you know, on April 25th the Senate Commerce Committee unanimously reported the Integrated Deepwater Program Reform Act (S.924). This legislation addresses problems the Deepwater program has experienced to date and gives the Coast Guard the tools it needs to reform the program. At the heart of S.924 is a requirement for the Coast Guard to conduct an independent and comprehensive Analysis of Alternatives (AOA) before executing additional contracts, task orders, or work orders. Beginning an AOA sooner than later is in the best interests of the Coast Guard, and we recommend you start the process as quickly as possible.

The Deepwater program is in a period of transition, and the Coast Guard has made many changes to key asset classes. It has suspended the Vertical Unmanned Aerial Vehicle program, halted the conversion of the 110-foot patrol boats, and terminated the Fast Response Cutter-A. The National Security Cutter has also experienced setbacks. In light of these developments, reexamining the Deepwater program through a comprehensive AOA conducted by an independent third-party is an essential step for the service to take before proceeding with additional acquisitions. The Department of Defense routinely performs AOAs when its recapitalization programs experience major modifications, and we believe the recent plethora of changes to Deepwater’s initial asset mix merits this kind of programmatic assessment.

We are aware of the concerns expressed by the Coast Guard and the contractors that requiring an AOA could cause delays to the delivery of key Coast Guard assets and could potentially increase costs. However, it is our understanding that this process as mandated in S. 924 would have minimal, if any, impact on the assets’ cost and delivery schedules. The benefits of the assessment outweigh these potential risks by providing Congress and the Coast Guard the assurance that this program will result in procurement of the most effective mix of assets. Furthermore, any risk to cost increases or schedule delays would be minimized if the Coast Guard chooses to begin the AOA process immediately.

The legislative process takes time, and time is working against the Coast Guard in this instance. New assets are vital to your ability to carry out your appointed missions, and we do not want to prevent those ships and aircraft from entering into service. But, we cannot tolerate any more taxpayer dollars spent on inappropriate equipment. Therefore, we request that you immediately begin the process of contacting an independent third-party to conduct a thorough, comprehensive AOA for the Deepwater program, as our legislation will require upon enactment.

We appreciate the steps you have already taken to begin the process of reforming the Deepwater program, and we will continue to work closely with you on these issues in the future.

Sincerely,

U.S. Senator Maria Cantwell,
Chair, Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard
U.S. Senator Olympia J. Snowe
Ranking Member, Subcommittee on Oceans, Atmosphere, Fisheries and Coast Guard