Comptroller General David Walker said in prepared testimony at the hearing that the Deepwater program illustrates problems that can occur when effective program management and contractor oversight are not in place.
GAO had described the project as risky back in 2001 because of the Coast Guard’s system-of-systems approach using the contractor as the integrator, and in 2004 reported that well into the second year key components needed to manage the program and oversee the system integrator’s performance had not been effectively implemented.
Integrated product teams comprised of government and contractor employees are the Coast Guard’s primary tool for managing the program and overseeing the contractor, Walker said.
However, the teams have not been effective due to changing membership, understaffing, insufficient training, lack of authority for decision-making, and inadequate communication among members, according to GAO-07-453T.
GAO also reported that the contractor received a rating of 87 percent successful and resulted in cash awards of $4 million, despite documented problems in schedule, performance, cost control, and contract administration throughout the first year of the contract.
Walker said GAO would continue to assess DHS’s acquisition oversight process and procedures in ongoing work, including the Deepwater program’s implementation and contractor oversight.
