Coast Guard scraps deal.

[ProSense]

Remember this: Scrap Lockheed/Northrop deal -Kerry to Coast Guard

AP

Coast Guard Cancels $600M Ship Deal

Thursday March 15, 11:17 am ET
By Dan Caterinicchia, AP Business Writer
Coast Guard Cancels $600M Ship Deal With Lockheed Martin, Northrop Grumman

WASHINGTON (AP) -- The U.S. Coast Guard has canceled a roughly $600 million contract awarded to a joint venture of Lockheed Martin Corp. and Northrop Grumman Corp., and said it plans to award a new deal next year.

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The canceled pact is part of the so-called $24 billion Deepwater modernization contract awarded in June 2002 to Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman, that has been lambasted in recent inspector general reports and on Capitol Hill for spiraling costs, lax oversight of the contractors, and other design flaws.

Snip...

Rep. Elijah Cummings, D-Md., who chairs the House Subcommittee on Coast Guard and Maritime Transportation, said Thursday he supported Allen's decision as a more efficient and effective use of taxpayers' dollars on a program that must control costs and make timely deliveries.

Cummings, however, said he did not share the view of Sen. John Kerry, D-Mass., who last month called for the Coast Guard to re-compete the entire deal when the current one expires in June.

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[karynnj]

1. I watched that hearing - it is great that they are rebidding that contract

These companies really did an awful job and the administration was horrible in monitoring him. Here is a link to a series of comments on the hearing - that Tay Tay had alerted us to.http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=273&topic_id=124936&mesg_id=125286

[ProSense]

2. Kerry legislation calls for Coast Guard to Drop Problematic Lockheed/Grumman Deal

03/15/2007

Kerry Pressures Coast Guard to Bid New Deepwater Contract

Kerry legislation calls for Coast Guard to Drop Problematic Lockheed/Grumman Deal, Save Taxpayers from More Waste

WASHINGTON, DC - Today, Senator John Kerry (D-Mass.) introduced legislation that will prevent the Coast Guard from re-signing the current Deepwater program contract with Lockheed Martin and Northrop Grumman. Kerry's bill requires the Coast Guard re-open the contract and hold a competitive bidding process for the remaining aspects of the program. Last month, Kerry called for the Coast Guard to drop the current contract when it comes up in June.
"It's long overdue for the Coast Guard to make the necessary reforms to protect taxpayers and prevent further delays in the Deepwater program. The Deepwater project has been riddled with problems, delaying implementation of essential security measures and potentially wasting millions of taxpayer dollars. My bill aims for a real, workable fix for the program," Kerry said.

Kerry acknowledged the Coast Guard decision yesterday to cancel a part of the Lockheed/Grumman contact and take overoperations for the "fast-response cutter," a high-speed security vessel.

"Taking over this aspect of the program is a good first step," Kerry said. "Now, Congress needs to get serious about oversight to make sure taxpayer dollars are protected in the Deepwater program going forward." Kerry added.

Kerry's legislation, The Deepwater Accountability Act, will increase oversight of the program, while providing the Coast Guard with the flexibility it needs to get the Deepwater program fully implemented.

Kerry's Deepwater Accountability Act:

* Requires the Coast Guard to solicit new contracts for the remaining assets of the Deepwater Program under the open competition requirements of the Federal Acquisition Regulation (FAR).

* Requires the Coast Guard to oversee all management decisions under the new contracts, so as to have full say over how taxpayer dollars are spent.

* Allows the Coast Guard to continue to work with Lockheed/Grumman on any incomplete asset if the Secretary of Homeland Security determines that bidding it out would compromise immediate national security needs or cost more money. If this occurs, the Coast Guard must submit a report to Congress on the status of the project every 180 days.

* Requires the Department of Homeland Security to submit a report to Congress within 30 days of enactment, detailing which assets the Coast Guard needs to finish with Lockheed/Grumman and which assets can be competitively bid.

* Requires the DHS Inspector General to issue a report to Congress within 180 days describing any decisions that resulted in cost overruns, whether any decisions violated the terms of the contract, and which party is responsible for covering any cost overruns.

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