Coast Guard seeks refund for Deepwater boats

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Coast Guard seeks refund for Deepwater boats




By Patricia Kime - Staff writer
Posted : Thursday May 17, 2007 22:50:44 EDT

The Coast Guard is seeking to recover its losses for eight failed patrol boats built under the Deepwater modernization program.
The service filed a letter May 17 with Integrated Coast Guard Systems, the joint partnership between Northrop Grumman Corp. and Lockheed Martin Corp. that holds the contract, canceling acceptance of eight 123-foot patrol boats delivered to the service in 2004 and 2005.
The ships — originally 110-foot cutters that were rebuilt and upgraded — developed an array of problems once they hit the water, from hull deformations to buckling propeller shaft alignment issues.
The formality paves the way for the Coast Guard to pursue remuneration for its losses on the ships, which will be scrapped.
The letter does not say how much the Coast Guard wants refunded. The vessels cost between $87 million and $94 million to build.
In the letter, Coast Guard contracting officer Pamela Bible said ICGS engineers failed to provide their analysis of the 123s’ failures to the Coast Guard.
She added that the Coast Guard feels it did not take any action or activity that had “any material impact on these failures.”
During a hearing before several House Homeland Security subcommittees May 17, acquisition chief Rear Adm. Gary Blore said the Coast Guard is adapting to the loss of the ships, but admitted that a gap exists between the number of patrol boat hours they have and those they need.
“We’re frustrated in our attempts to bring the eight 123 cutters on line, we’re disappointed,” Blore said.
ICGS spokeswoman Margaret Mitchell-Jones said the companies will evaluate the letter and respond accordingly.


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