The Honorable Maria Cantwell
United States Senate
Washington, DC 20510
Dear Senator Cantwell:
On behalf of the 362,000 members of the National Taxpayers Union (NTU), I write to endorse S. 924, the Integrated Deepwater Program Reform Act. Your bill would bring consistent and active oversight to the U.S. Coast Guard's Deepwater program, and we firmly believe the passage of S. 924 would benefit the American Taxpayer as costs are streamlined and existing funds are used more wisely.
The 25-year, $24 billion Deepwater program was intended to improve the Service_s rescue and law enforcement capabilities by replacing or modernizing vessels used in missions more than 50 miles from shore. However, the contracted products conceived or delivered through Deepwater have been caught in turbulent tides. Starting in 2001 the Government Accountability Office (GAO) described the Deepwater program as "risky" due to the program's "untried acquisition strategy," and in 2004 the GAO reported on challenges associated with Deepwater's program management, contractor accountability, and cost control.
Taxpayers have watched with dismay as these issues have manifested themselves in appalling examples of waste. Late last year the Coast Guard laid up eight of its 123-foot upgraded cutters when they couldn't handle the high seas for which they were designed. Performance risks of another ship, the Fast Response Cutter, have kept its design plan in dry-dock. As for the Coast Guard's largest vessels, the National Security Cutters, potential "fatigue cracks" in the first two ships' hulls could shorten their service life by 20 percent. Yet, their price tags have risen 50 percent since 2002 and will eventually reach nearly $1.1 billion. Forcing taxpayers to foot the bill for dysfunctional as well as over-budget projects constitutes a travesty.
S. 924 addresses these concerns through a multi-faceted reform approach by 1) requiring knowledgeable, third-party reviews of plans for future procurements; 2) calling for reports to Congress on forthcoming contracts and the status of reform implementation; and, 3) improving the Coast Guard's ability to manage contracts. While the Coast Guard has voluntarily committed itself to following some of the improved standards outlined in your bill, taxpayers deserve the peace of mind in knowing that the reforms have been codified into law.
We encourage all Senators to support S. 924, and roll call votes on this bill will be included in NTU's annual Rating of Congress.
Sincerely,
Pete Sepp
Vice President for Communications