With 60 Minutes jumping on the beat-up-Deepwater bandwagon, Lockheed Martin and Northrop Grumman may not see calmer waters any time soon over their stewardship of the Coast Guard's modernization and recapitalization program.
And now cracks are emerging in their once tighter solidarity as joint venture Integrated Coast Guard Systems, the Deepwater lead-systems integrator. Lockheed has started to distance itself from shipbuilding issues that fall under Northrop's responsibility.
"As clearly spelled out in the joint venture agreement between Lockheed Martin and Northrop Grumman, Lockheed Martin is responsible for the aviation, command and control and logistics elements of the Deepwater program, and has no insight or responsibility into ship design or construction issues," Lockheed said late last week when news broke about the start of the Coast Guard's expected refund effort over eight failed patrol boats.
The Coast Guard's Revocation of Acceptance letter to ICGS "clearly refers" to hull buckling and shaft-alignment issues on the erstwhile 123-foot cutters, Lockheed notes. In addition, Coast Guard Rear Adm. Gary Blore's April 18 testimony states, "I want to clearly state that the decision to suspend operations of these boats was in no way related to C4ISR or topside equipment issues. Rather, the decision was based entirely on ongoing structural problems," Lockheed points out.
"Accordingly, we anticipate no financial impact on Lockheed Martin from the Revocation of Acceptance letter," Lockheed said.
Still, Lockheed is taking its own share of heat. Homeland Security Department inspector general officials have spotlighted concerns with acquisition and implementation of Deepwater command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR).
"We determined that the Coast Guard had limited influence over contractor decisions toward meeting information technology requirements," DHS IG Richard Skinner reiterated in May 17 congressional testimony.
"The lack of discipline in change management processes provided little assurance that the requirements remain up-to-date or effective in meeting program goals. Certification and accreditation of Deepwater C4ISR equipment was difficult to obtain, placing systems security and operations at risk. Further, although the Deepwater Program had established information technology testing procedures, the contractor did not follow them consistently to ensure the C4ISR systems and the assets on which they are installed performed effectively."
The Coast Guard says Deepwater contract language, including "award term" criteria, will be revised to clarify contractor responsibilities for developing Deepwater C4ISR systems.
--Michael Bruno
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