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• Federation of American Scientists

Summary

The Integrated Deepwater Systems (IDS) program, or Deepwater program for short, is a $24-billion, 25-year project to replace and modernize the Coast Guard's aging fleet of deepwater-capable ships and aircraft. It is the largest and most complex acquisition effort in Coast Guard history, encompassing 91 new cutters, 124 new small surface craft, and 244 new or converted airplanes, helicopters, and unmanned aerial vehicles (UAVs). The Deepwater program has received a total of about $4.4 billion through FY2007, including about $1.14 billion in FY2007. For FY2008, the Coast Guard is requesting $836.9 million in new appropriations and the rescission of $48.8 million in prior-year appropriations for the program, for a net total request of $788.1 million. The management and execution of the Deepwater program has been strongly criticized in recent months by the Department of Homeland Security Inspector General (DHS IG), the Government Accountability Office (GAO), the Defense Acquisition University (DAU), several Members of Congress from committees and subcommittees that oversee the Coast Guard, and other observers. House and Senate committees and subcommittees have conducted several oversight hearings this year devoted partly or entirely to problems and concerns regarding the management and execution of the program. On April 17, 2007, the Coast Guard announced a series of actions to reform the management of the Deepwater program. Among other things, the Coast Guard announced it will assume the role of lead system integrator (LSI) for the program. Since 2002, the LSI role had been performed by Integrated Coast Guard Systems (ICGS) -- an industry team led by Lockheed Martin and Northrop Grumman Ship Systems (NGSS). On April 18, 2007, it was reported that the Justice Department is conducting an investigation of the Deepwater program. Legislation that would appropriate funds for the Deepwater program, significantly restructure the program (and Coast Guard contracting in general), and place various new requirements and conditions on the Deepwater program, includes the following: ! H.R. 2638/S. 1644, the FY2008 Department of Homeland Security appropriations act; ! H.R. 2206/P.L. 110-28, the FY2007 emergency supplemental appropriations act; ! H.R. 2722, the Integrated Deepwater Program Reform Act; ! S. 889, the Deepwater Accountability Act; and ! S. 924, the Integrated Deepwater Program Reform Act. H.R. 2638 recommends $698.4 million in new appropriations and the rescission of $107.4 million in prior-year appropriations for the program, for a net total of $590.9 million. S. 1644 recommends $826.9 million in new appropriations and the rescission of $58.7 million in prior-year appropriations for the program, for a net total of $770.1 million. This report will be updated as events warrant.

Related Legislation:
• H.R.2638
• S.1644
• H.R.2206
• H.R.2722
• S.889
• S.924

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