By: Mickey McCarter
http://www.hstoday.us/home.html
The US Coast Guard jumped the gun in buying
its new class of patrol boats, pursuing an aggressive acquisition
strategy that may create problems for production of the boat in the near
future, warned the inspector general (IG) of the Department of Homeland
Security (DHS).
The service began buying its Sentinel Class Fast Response Cutters (FRCs) before design work was complete, noted the recent IG report, US Coast Guard's Acquisition of the Sentinel Class Fast Response Cutter. Because of that decision, the Coast Guard had to rework six FRCs in production, resulting in 270 days of schedule delays for each boat and a total cost increase of $6.9 million for the acquisition, which could reach roughly $1.5 billion for 34 FRCs.
The acquisition schedule may produce more challenges in the future, as the Coast Guard embarked on FRC procurement before tests on its design were complete.
"This aggressive acquisition strategy also allowed the Coast Guard to procure 12 Fast Response Cutters before testing the lead cutter in actual operations. It is uncertain whether the Fast Response Cutter will perform as intended until it completes operational test and evaluation in actual maritime environments," the report stated.
"If operational test and evaluation on the lead Fast Response Cutter reveals deficiencies, the Fast Response Cutters may incur additional costly rework and delays, or the Coast Guard may have to accept Fast Response Cutters that do not fully meet its mission requirements. This may hinder the Coast Guard's ability to fill the critical shortages in its patrol boat fleet," it added.
The IG report made five recommendations aimed at strengthening FRC procurement and avoiding similar challenges in future acquisitions, but the Coast Guard did not completely agree with the IG office.
The Coast Guard should follow a strategy that allows for schedule-driven procurements only after completion of a risk analysis and cost-benefit analysis to support it, the IG report said. The Coast Guard also should require a certain level of maturity in systems design before beginning any production, including initial acquisitions of low numbers of systems. Moreover, even low-rate initial production should be supported by the results of operational tests, and the Coast Guard should issue a policy directive to that effect, the IG said.
The service began buying its Sentinel Class Fast Response Cutters (FRCs) before design work was complete, noted the recent IG report, US Coast Guard's Acquisition of the Sentinel Class Fast Response Cutter. Because of that decision, the Coast Guard had to rework six FRCs in production, resulting in 270 days of schedule delays for each boat and a total cost increase of $6.9 million for the acquisition, which could reach roughly $1.5 billion for 34 FRCs.
The acquisition schedule may produce more challenges in the future, as the Coast Guard embarked on FRC procurement before tests on its design were complete.
"This aggressive acquisition strategy also allowed the Coast Guard to procure 12 Fast Response Cutters before testing the lead cutter in actual operations. It is uncertain whether the Fast Response Cutter will perform as intended until it completes operational test and evaluation in actual maritime environments," the report stated.
"If operational test and evaluation on the lead Fast Response Cutter reveals deficiencies, the Fast Response Cutters may incur additional costly rework and delays, or the Coast Guard may have to accept Fast Response Cutters that do not fully meet its mission requirements. This may hinder the Coast Guard's ability to fill the critical shortages in its patrol boat fleet," it added.
The IG report made five recommendations aimed at strengthening FRC procurement and avoiding similar challenges in future acquisitions, but the Coast Guard did not completely agree with the IG office.
The Coast Guard should follow a strategy that allows for schedule-driven procurements only after completion of a risk analysis and cost-benefit analysis to support it, the IG report said. The Coast Guard also should require a certain level of maturity in systems design before beginning any production, including initial acquisitions of low numbers of systems. Moreover, even low-rate initial production should be supported by the results of operational tests, and the Coast Guard should issue a policy directive to that effect, the IG said.
The Coast Guard only partly agreed with those
recommendations. The service defended the FRC acquisition as properly
following Coast Guard and DHS knowledge-based acquisition management
policies and processes. Coast Guard officials contend they did affirm
risk assessments and cost-benefit analyses as a means to strengthen
schedule-driven acquisitions.
The Coast Guard further acknowledged that design maturity reduces acquisition risks but defended its procedures in the FRC procurement. The Coast Guard agreed that designs should be about 85 percent complete before a major review of the design status that clears action for procurement.
The service also did not agree with mandating completion of operational tests and evaluations before beginning initial production on a major acquisition like the FRC. While the Coast Guard agreed with the intent of the recommendation, it asserted that early operational assessments were sufficient for moving ahead with design reviews and production.
An early operational assessment for the lead FRC was conducted in June 2009 and a follow-up assessment was complete on Feb. 3, 2011, before the Coast Guard accepted the boat, the service reported.
The Coast Guard agreed with IG recommendations to document risk assessments when beginning an initial production of more than 10 percent of the acquisition and to carry out plans for operational assessments prior to delivery of the lead FRC.
Bollinger Shipyards LLC received a contract valued at $88.2 million in September 2008 for the design and construction of the lead FRC, the IG report recounted. The overall contract, which could reach an estimated $1.5 billion, is divided up into six options for a total of 34 cutters.
By September 2011, the Coast Guard awarded three contract options to build 12 cutters at a value of roughly $600 million. But while the Coast Guard has closely managed the FRC contract, its aggressive schedule did not allow for the resolution of operational, design and technical risks before the start of production, the IG report said.
As part of its fleet recapitalization, the Coast Guard is buying the FRCs to fulfill requirements to patrol the US coastline, replacing very old Island-class 110-foot patrol boats. The new boat was the first major acquisition under the program formerly known as the Integrated Deepwater System. The Coast Guard plans to use the FRCs for a range of missions, including drug interdiction, migrant interdiction, search and rescue, and law enforcement.
The FRC offers the possibility of greater capabilities than the Island-class cutters in fulfilling those missions. It will have a small boat stern launch and recovery system for expanded operations. It will hold five crewmembers and achieve speeds of 40 knots.
To speed the FRC acquisition schedule, the
Coast Guard based its procurement on the proven design of the Damen 4708
but sought to bolster speed, reduce weight and complexity, improve
habitability and modify other characteristics of the boat.The Coast Guard further acknowledged that design maturity reduces acquisition risks but defended its procedures in the FRC procurement. The Coast Guard agreed that designs should be about 85 percent complete before a major review of the design status that clears action for procurement.
The service also did not agree with mandating completion of operational tests and evaluations before beginning initial production on a major acquisition like the FRC. While the Coast Guard agreed with the intent of the recommendation, it asserted that early operational assessments were sufficient for moving ahead with design reviews and production.
An early operational assessment for the lead FRC was conducted in June 2009 and a follow-up assessment was complete on Feb. 3, 2011, before the Coast Guard accepted the boat, the service reported.
The Coast Guard agreed with IG recommendations to document risk assessments when beginning an initial production of more than 10 percent of the acquisition and to carry out plans for operational assessments prior to delivery of the lead FRC.
Bollinger Shipyards LLC received a contract valued at $88.2 million in September 2008 for the design and construction of the lead FRC, the IG report recounted. The overall contract, which could reach an estimated $1.5 billion, is divided up into six options for a total of 34 cutters.
By September 2011, the Coast Guard awarded three contract options to build 12 cutters at a value of roughly $600 million. But while the Coast Guard has closely managed the FRC contract, its aggressive schedule did not allow for the resolution of operational, design and technical risks before the start of production, the IG report said.
As part of its fleet recapitalization, the Coast Guard is buying the FRCs to fulfill requirements to patrol the US coastline, replacing very old Island-class 110-foot patrol boats. The new boat was the first major acquisition under the program formerly known as the Integrated Deepwater System. The Coast Guard plans to use the FRCs for a range of missions, including drug interdiction, migrant interdiction, search and rescue, and law enforcement.
The FRC offers the possibility of greater capabilities than the Island-class cutters in fulfilling those missions. It will have a small boat stern launch and recovery system for expanded operations. It will hold five crewmembers and achieve speeds of 40 knots.
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