A Good Idea, But...

The General Accounting Office throws some cold water on the USCG's largest acquisition program ever - the Deepwater Project, a $9.8 billion program designed to significantly upgrade the USCG's marine and air fleets over the next 20 years. The U.S. General Accounting Office (GAO) has issued a report (GAO/RCED-99-6) which raises serious questions regarding the USCG's proposed $9.8 billion, 20-year deepwater asset revamp. Specifically, GAO questions the need for such a large program, considering many ships and aircraft are now able to be used well beyond their originally intended service life because of advances in maintenance. GAO also, perhaps more importantly, questions the ability of USCG to pay the estimated $500 million per year under current funding plans without a significant boost of the budget via Congress, or a similar fund-drive through increased user fees. While the GAO is indeed critical of some aspects of the Deepwater Project, the underlying tone throughout the report was one of support and commendation. For example, time and again GAO lauded the USCG's procurement strategy of procuring in a manner which would result in an integrated system of assets, rather than the more costly alternative of replacing one ship, or one class, at a time. It also lauded the USCG for its effort in starting early, given the overall magnitude of the procurement. The USCG Deepwater Project has been widely hailed in maritime circles as a much needed shot in the arm for shipyards and related suppliers, who have been faced with a continuously declining U.S. Navy budget and increasingly competitive commercial work, both at home and abroad.