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“I hope that we in Congress -- and again, on a bipartisan basis -- can put more money into this Deepwater program of the Coast Guard to modernize their fleet. Some of us on the committee serve on the Armed Services Committee as well. And while the amount of money put into this fleet modernization program for the Coast Guard is not insignificant, it truly does pale in comparison to the billions of dollars we're putting into other programs through the Department of Defense. And I do think we've got to start to look at Coast Guard capital needs in the same way we do the services. So I hope we can turn that around here.”

Senator Joseph Lieberman, (D-CT), Ranking Member, Senate Committee on Governmental Affairs, comments during testimony of Department of Homeland Security Secretary Tom Ridge, February 9, 2004

Over five years ago, the U.S. Coast Guard was faced with a fleet of old and rapidly aging large cutters, fixed and rotary winged aircraft and old or obsolete command and control systems that are crucial to police and protect the martime infrastructure.

To meet the challenge, the Coast Guard took a "systems-of-systems" approach to procure new or update existing ships, aircraft, command and control systems while also developing a streamlined logistics structure to support and maintain their new and updated assets. This is a departure from traditional one-for-one asset acquisition programs.

The Deepwater Program was created and awarded as a "performance based" contract - creating a public/private partnership in which the Government identifies mission performance, allowing industry to develop products and systems to meet those requirements.

Deepwater acquisition priorities include:

  • An integrated "Mix of forces" solution
  • Low-risk, minimal development of assets—wherever possible, procurement of "State-of- the market" products and technologies
  • Five-year, performance-based contract with additional award terms for up to 30 years
  • Conformance to a budget, utilizing acquisition, construction and improvement (AC&I) funds and with operating expense of less than (FY98$) $996M, annually

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