Statements on Introduced Bills and Joint Resolutions

Floor Speech

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS -- (Senate - March 20, 2007)

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By Ms. CANTWELL (for herself and Ms. Snowe):

S. 924. A bill to strengthen the United States Coast Guard's Integrated Deepwater Program; to the Committee on Commerce, Science, and Transportation.

Ms. CANTWELL. Mr. President, I think we all agree that the United States Coast Guard plays a critical role in keeping our oceans, coasts, and waterways safe, secure, and free from environmental harm. Following the events of September 11 and, more recently, Hurricane Katrina the Coast Guard has served as a source of strength for this Nation. And, in the face of increasing marine traffic, security threats at our Nation's ports, and climate change increasing the odds of another Katrina, the responsibilities of the Coast Guard continue to increase.

The Coast Guard is struggling right now to replace their rapidly aging fleet of ships, aircraft, and facilities. At a cost of $24 billion, the Deepwater program is the largest and most complex acquisition program in the history of the Coast Guard. We have a responsibility to ensure there is transparency and oversight so this program is as efficient and effective as possible.

The Deepwater program utilizes a private sector lead systems integrator, LSI, know as Integrated Coast Guard Systems, ICGS, to oversee acquisition of a ``system of systems.'' When the Deepwater contract was originally awarded in 2002, the Coast Guard did not have the personnel within their acquisition department to manage such a large contract. We were told that outsourcing that role to industry would save the Coast Guard time and money over the long run.

The approach, which may have seemed innovative at the time, has not produced the promised results. Instead of cost and time savings, we've seen less competition, inadequate technical oversight and a lack of transparency. Over the last year, these problems have caused major blunders in the Deepwater program.

The Department of Homeland Security Inspector General, IG, has released three recent reports detailing some of the problems with Deepwater.

In an August 11, 2006 report titled Major Improvements Needed in the U.S. Coast Guard's Implementation of Deepwater Information Technology System, the IG described problems with Deepwater's C41SR electronics equipment, which is to be the integrating technology linking Deepwater's aircraft and ships.

On January 29, 2007, the IG released a scathing report on Deepwater's flagship National Security Cutter, NSC, documenting crucial design flaws and cost overruns created by a faulty contract structure and lack of Coast Guard oversight.

Finally, on February 9, 2007, the IG released another report, this one detailing serious issues with Deepwater's 123-foot cutter conversion project.

These reports, along with others by the Government Accountability Office about problems with the stalled Fast Response Cutter, FRC, program and the Deepwater contract structure, have prompted a resounding cry for Deepwater reform, transparency, and oversight.

On February 14, 2007, I chaired a hearing in the Commerce Committee's Subcommittee on Oceans, Atmosphere, Fisheries, and Coast Guard to better understand these issues and seek solutions. From that hearing it was clear that the Coast Guard was working hard to make internal reforms. It was also clear that we needed to do more to protect the American taxpayer.

Today, I'm pleased to introduce, along with Senator Snowe, the Integrated Deepwater Program Reform Act, a comprehensive bill which makes fundamental changes to the Coast Guard's Deepwater acquisition program.

My bill requires the Coast Guard to move away from the industry-led Lead Systems Integrator and have full and open competition for future Deepwater assets.

It requires a completely new ``analysis of alternatives'' of all future Deepwater assets to ensure that the Coast Guard is getting the assets best-suited for their needs.

It requires the Commandant of the Coast Guard to certify to Congress that specific assets to be procured are mature and cost-effective technologies, a requirement already applied to Department of Defense contracts.

And, it gives the Coast Guard the tools they need to manage this contract and future contracts effectively, including requiring the Coast Guard to make internal management changes to ensure open competition, increase technical oversight and improve reporting to Congress.

I'm pleased to say that I have worked closely with Senator Snowe and the Coast Guard in crafting this bill and I'm confident that this will fix many of the problems that have plagued the Deepwater program.

This legislation takes a big step towards getting the Coast Guard the assets they need to meet the pressing needs of our Nation and ensuring responsible management of taxpayer dollars. I look forward to working with my colleagues to enact the changes we propose today so we can get this program back on track.

I ask unanimous consent that a summary of the bill and the text of the bill be printed in the Record.

There being no objection, the material was ordered to be printed in the RECORD, as follows:

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