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Abstract:The testimony today, which is based on recently completed and ongoing work, addresses two topics: (1) the Coast Guard?s progress in justifying and managing its Deepwater Project and (2) opportunities for improving the Coast Guard?s operating efficiencies. The Coast Guard has opportunities to improve the efficiency and cost-effectiveness of its operations. Past studies have recommended cost-cutting measures, such as consolidating or closing training centers and other facilities, lengthening rotation periods for military personnel, and more efficiently managing the spare parts inventories for cutters and aircraft. The Coast Guard has not taken action on many of these recommendations, although it is working on systems to improve the management of its spare parts inventories. The Coast Guard is addressing ourcConcerns on the Deepwater Project, but key questions remain as it seeks more funding. The Coast Guard is addressing many of our previous concerns about the justification of the Deepwater Project. However, numerous uncertainties still exist, including the
project?s affordability, the accuracy of estimates for project costs and delivery, the adequacy of management controls in place to oversee the project, and the contracting strategy to be used. These challenges must be addressed both before and after it awards a contract for its Deepwater system in January 2002.
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