WHAT A DIFFERENCE A YEAR MAKES

R 192035Z DEC 07 ZUI ASN-A00353000016 ZYB
FM COMDT COGARD WASHINGTON DC
TO ALLHANDS
BT
UNCLAS //N01000//
SUBJ:  WHAT A DIFFERENCE A YEAR MAKES
1.  TO THE MEN AND WOMEN OF THE COAST GUARD:  JUST OVER A WEEK AGO,
USCGC BERTHOLF (WMS 750), THE FIRST NATIONAL SECURITY CLASS (NSC)
CUTTER, GOT UNDERWAY FOR THE FIRST TIME UNDER HER OWN POWER TO
COMPLETE MACHINERY TRIALS.  ALL INDICATIONS ARE THAT THE TRIALS
WENT EXTREMELY WELL AND BERTHOLF WILL MEET OR EXCEED OUR
REQUIREMENTS UPON COMMISSIONING NEXT YEAR.  (REAR ADM. BLORE, THE
ASSISTANT COMMANDANT FOR ACQUISITION, WILL ISSUE AN ALCOAST SHORTLY
THAT PROVIDES GREATER DETAIL ON THE RESULTS OF THE MACHINERY
TRIALS). GIVEN THIS MILESTONE IN COAST GUARD HISTORY, I THOUGHT
THIS WOULD BE A GOOD TIME TO PROVIDE AN UPDATE ON THE HEALTH OF OUR
VITAL DEEPWATER PROGRAM.
2.  FIRST, A LITTLE HISTORY:  ABOUT A YEAR AGO, THE COAST GUARD'S
$24 BILLION DEEPWATER CAPITAL ACQUISITION PROGRAM TO REPLACE AND
MODERNIZE VIRTUALLY OUR ENTIRE FLEET OF OFFSHORE CUTTERS, BOATS,
AIRCRAFT, AND COMMAND AND CONTROL SYSTEMS OVER 25 YEARS, CAME UNDER
INTENSE PUBLIC SCRUTINY.  THE DHS INSPECTOR GENERAL, THE GOVERNMENT
ACCOUNTABILITY OFFICE, OUR CONGRESSIONAL OVERSEERS, AND OTHERS
VOICED CONCERN WITH SIGNIFICANT CHALLENGES WE FACED IN PERFORMANCE,
COST AND SCHEDULE.  AT THE TIME, WE COMMITTED TO TAKING STRONG,
DECISIVE ACTION TO IMPROVE COAST GUARD MANAGEMENT AND OVERSIGHT OF
THIS VITAL MODERNIZATION PROGRAM.
3.  MUCH OF THE CRITICISM LAST YEAR CENTERED AROUND EIGHT 110-FOOT
PATROL BOATS AMONG A FLEET OF 49 BOATS KEPT WELL BEYOND THEIR
PLANNED SERVICE LIFE IN A FAILED ATTEMPT TO LENGTHEN THEM TO GET
ADDITIONAL YEARS OF SERVICE.  THESE EFFORTS DID NOT TO LIVE UP TO
THEIR PROMISE, AND WE HAVE SINCE RESCINDED OUR ACCEPTANCE.  WE WILL
REPLACE THE REMAINDER OF OUR 110-FOOT PATROL BOATS WITH A NEW FLEET
OF 58 FAST RESPONSE CUTTERS (FRC), THE FIRST OF WHICH WILL BEGIN TO
ENTER SERVICE IN 2010.  TO SPEED PROJECT COMPLETION AND INCREASE
COMPETITION IN THE MARKET, WE TOOK THE FRC PROJECT OUTSIDE OF THE
DEEPWATER CONTRACT LAST YEAR AND ISSUED A REQUEST FOR PROPOSALS IN
RECORD TIME. WE ARE CURRENTLY REVIEWING THOSE PROPOSALS AND LOOK
FORWARD TO ANNOUNCING A NEW CONTRACT AWARD THIS SPRING.  IN THE
INTERIM, WE HAVE INCREASED PATROL DAYS FOR SOME OF THE REMAINING
PATROL BOATS USING THE CREWS OF THE LAID UP CUTTERS AND ARE IN THE
PROCESS OF PROCURING FOUR ADDITIONAL NEW 87-FOOT PATROL BOATS.
4.  ANOTHER AREA OF SIGNIFICANT CONCERN FOCUSED ON THE FATIGUE LIFE
OF OUR NEWEST DEEPWATER CUTTER, THE 418-FOOT NATIONAL SECURITY
CUTTER (NSC).  IN RESPONSE TO THESE CONCERNS, WE WORKED TIRELESSLY
WITH OUR OWN ENGINEERS, INDUSTRY AND OUR NAVY COUNTERPARTS TO
IDENTIFY STRUCTURAL DESIGN MODIFICATIONS NEEDED TO HELP ENSURE A
30-YEAR SERVICE LIFE.  WE ALSO UNDERTOOK A SIGNIFICANT RE-
STRUCTURING OF THE NSC PROJECT CONTRACT WITH INDUSTRY LAST YEAR.
THIS HAS RESULTED IN BETTER CONDITIONS AND COST CONTROL FOR THE
GOVERNMENT WHILE RESOLVING NUMEROUS OUTSTANDING CONTRACTUAL ISSUES
THAT EXISTED FOR MORE THAN TWO YEARS.
5.  WE SUSPENDED WORK ON OUR VERTICAL UNMANNED AERIAL VEHICLE
(VUAV) PROJECT DUE TO OUR CONCERNS WITH THE TECHNOLOGICAL MATURITY
OF THE DESIGNS OFFERED.  WE ARE STUDYING SEVERAL ALTERNATIVE
TECHNOLOGIES AND CONTINUE TO RESEARCH THE BEST WAY FORWARD THAT
WILL MEET OUR SURVEILLANCE AND RECONNAISSANCE REQUIREMENTS,
POSSIBLY IN CONCERT WITH OTHER DHS EFFORTS.
6.  HERE'S WHERE THE PROGRAM STANDS TODAY:  IMPROVEMENTS WE'VE MADE
IN THE DEEPWATER PROGRAM OUTLINED ABOVE ARE THE DIRECT RESULT OF
AGGRESSIVE OVERSIGHT AND MANAGEMENT REFORMS IMPLEMENTED IN THE PAST
YEAR TO PUT THE PROGRAM BACK ON TRACK.  WE CHANGED THE WAY WE ARE
DOING BUSINESS OVERALL BY IMPROVING THE ORGANIZATIONS, POLICIES AND
PROCESSES THAT GOVERN HOW WE ACQUIRE SHIPS, AIRCRAFT AND EQUIPMENT.
WE CALL THIS STRATEGY FOR BUSINESS TRANSFORMATION OUR BLUEPRINT FOR
ACQUISITION REFORM.
7.  IN JULY, WE REACHED ANOTHER MILESTONE WHEN WE STOOD UP THE
CONSOLIDATED ACQUISITION DIRECTORATE (CG-9), WHICH IS COMPRISED OF
SEVERAL LEGACY ACQUISITION OFFICES, INCLUDING THE DEEPWATER PROGRAM
OFFICE. THE NEW DIRECTORATE MANAGES SERVICES AND SUPPORTS A $27
BILLION INVESTMENT PORTFOLIO THAT INCLUDES MORE THAN 20 MAJOR
ACQUISITION PROJECTS, INCLUDING THE RESCUE 21, THE NATIONWIDE
AUTOMATED IDENTIFICATION SYSTEM (NAIS), AND OUR RESPONSE BOAT -
MEDIUM PROJECTS.  OUR SHARED VISION FOR THE DIRECTORATE SETS A NEW
COURSE FOR OUR ACQUISITION COMMUNITY.  THIS WILL ENABLE US TO BE
MORE EFFECTIVE IN HOW WE APPLY OUR RESOURCES; IN THE WAY WE DIRECT
OUR WORKFORCE TO THE HIGHEST PRIORITIES IN CONTRACTING AND PROGRAM
MANAGEMENT; IN ACQUISITION WORKFORCE PROFESSIONAL DEVELOPMENT; AND
IN OUR STANDARD ACQUISITION POLICIES & PROCESSES.
8.  WE ARE JUST BEGINNING TO SEE THE FRUITS OF OUR LABOR AS A
RESULT OF MANY OF THE ACQUISITION PROGRAM CHANGES MADE IN THE PAST
YEAR.  USCGC BERTHOLF RECENTLY COMPLETED MACHINERY TRIALS AS ONE
STEP LEADING TO COMMISSIONING NEXT YEAR.  USCGC WAESCHE (WMSL 751)
IS THIRTY PERCENT COMPLETE AND WE WILL CUT STEEL FOR THE THIRD
SHIP, USCGC HAMILTON (WMSL 752), NEXT YEAR. WE ALSO TOOK DELIVERY
OF THREE NEW HC-144 OCEAN SENTRY MARITIME PATROL AIRCRAFT AND
STARTED CONSTRUCTION ON FIVE MORE, UPGRADED OUR ENTIRE FLEET OF 95
HH-65C DOLPHIN HELICOPTERS WITH MORE POWERFUL ENGINES, AND ADDED
NEW SENSORS AND COMMUNICATION SYSTEMS ABOARD 35 OF OUR LEGACY
MEDIUM ENDURANCE CUTTERS IN THE PAST YEAR.  OUR MISSION
EFFECTIVENESS PROJECT TO SUSTAIN AND REFURBISH OUR LEGACY FLEET OF
110-FOOT COASTAL PATROL BOATS AND BOTH CLASSES OF MEDIUM ENDURANCE
CUTTERS IS IN ON SCHEDULE AND WITHIN BUDGET.  I HAD THE OPPORTUNITY
TO FLY ABOARD THE FIRST MH-60T JAYHAWK GOING THROUGH CONVERSION AT
OUR AIRCRAFT REPAIR AND SUPPLY CENTER IN ELIZABETH CITY, NC
RECENTLY AND WAS IMPRESSED WITH ITS SIGNIFICANT IMPROVEMENTS IN
STATE-OF-THE-ART SENSORS, NAVIGATION AND COMMUNICATIONS.  THIS
COMING SUMMER, THE FIRST OF SIX NEWLY MISSIONIZED C130J HERCULES
LONG RANGE SURVEILLANCE AIRCRAFT WILL BE OPERATIONAL.  MOREOVER, WE
ARE SEEING REAL RESULTS IN THE EXECUTION OF OUR VITAL MISSIONS AS A
RESULT OF DEEPWATER, HAVING REMOVED MORE COCAINE AT SEA (161 METRIC
TONS) THAN IN ANY OTHER YEAR IN OUR HISTORY OF DRUG INTERDICTION
AND SET A NEW ALTITUDE RECORD IN THE COURSE OF AN HH-65C RESCUE IN
THE STATE OF WASHINGTON.
9.  UNDOUBTEDLY, WE WILL FACE ADDITIONAL CHALLENGES IN THE FUTURE
AS WE STRUGGLE WITH SIMULTANEOUSLY MAINTAINING AN OBSOLETE FLEET OF
SHIPS AND AIRCRAFT WHILE WE INTRODUCE A NEW FLEET OF MORE CAPABLE
SHIPS AND AIRCRAFT INTO SERVICE. YET, I AM CONFIDENT THAT THE
DEEPWATER PROGRAM IS BACK ON COURSE AND OPTIMISTIC THAT WE WILL
PREVAIL IN DOING BOTH TO THE BEST OF OUR ABILITY.  MAKE NO MISTAKE
ABOUT IT.  DEEPWATER IS UNDERWAY AND MAKING WAY.
10.  ADMIRAL THAD ALLEN SENDS.
11.  INTERNET RELEASE AUTHORIZED.
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