05.17.07

Responding to Cantwell Request, Coast Guard Will Recoup Wasted Taxpayer Money from Contractor

Coast Guard will seek damages from ICGS for failed 123-foot patrol boats

WASHINGTON, DC - Thursday, the Coast Guard announced that it will seek to recoup damages from lead contractor ICGS for eight converted boats that are permanently out of service. In a March letter, U.S. Senators Maria Cantwell (D-WA) and Olympia Snowe (R-ME) called on the Coast Guard to do everything in its power to make sure taxpayers are not held responsible for failures by the contractor. The 123-foot conversion program, which sought to modernize and extend 110-foot patrol boats, failed completely. All eight converted ships were removed from service permanently on April 17 due to significant structural flaws—a waste of $100 million.

"I applaud the Coast Guard for taking this critically important step to recoup millions of dollars wasted by the contractor," said Cantwell, Chair of the Senate Coast Guard Subcommittee. "We must continue to hold ICGS responsible for these flawed ships that fall far short of contract requirements. Taxpayers should not get stuck with this bill. We will keep on this issue until we fix Deepwater."

Thursday, the Coast Guard notified ICGS that it will revoke acceptance of the eight converted 123-foot patrol boats because they do not meet performance specifications listed in the contract. The Coast Guard will also seek damages for ICGS failures. The Coast Guard made the announcement in a letter sent to ICGS Thursday.

For more on Cantwell and Snowe's March 14 letter to the Coast Guard, click here. 

Deepwater—a partnership between the Coast Guard and a joint venture by Lockheed Martin and Northrop Grumman, known as Integrated Coast Guard Systems (ICGS)—is a 25-year, $24 billion initiative to replace the aging fleet of Coast Guard assets used in missions more than 50 miles from the coast. The program is plagued by cost overruns, design flaws, ships and technology that fail to meet contract requirements, and a contract structure that strips the Coast Guard of oversight and decision-making authority.

Since taking over as Subcommittee Chair, Cantwell has worked aggressively to fix Deepwater. In February, she chaired the first Senate hearing on the program, and heard testimony from Coast Guard Commandant Admiral Thad Allen, DHS Inspector General Richard Skinner, Deepwater contractors, and retired Coast Guard engineer Kevin Jarvis. In March, Cantwell introduced her comprehensive legislation to fix Deepwater. In developing the legislation, Cantwell worked with the Coast Guard and took into account recommendations by the DHS Inspector General, the Defense Department's DAU, and the GAO. Cantwell also met with Commandant Allen on several occasions. Cantwell's legislation to fix Deepwater, passed by the Commerce Committee in April, would ensure open competition for future Deepwater contracts, end Coast Guard reliance on ICGS, mandate better technical oversight by Coast Guard engineering staff, and improve internal Coast Guard management of Deepwater.

 

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