United States Coast Guard: Improvements Needed in Management and Oversight of Rescue System Acquisition

GAO-06-623 May 31, 2006
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Summary

Search and rescue--one of the United States Coast Guard's (USCG) oldest missions and highest priorities--involves minimizing loss of life, injury, and property damage by aiding people and boats in distress. In September 2002, USCG contracted to replace its search and rescue communications system--installed in the 1970s--with a new system known as Rescue 21. However, the acquisition and initial implementation of Rescue 21 has resulted in significant cost overruns and schedule delays. GAO's objectives in reviewing the Rescue 21 program were to (1) assess the reasons for the significant cost overruns and implementation delays; (2) evaluate the viability of the revised cost and schedule estimates; and (3) evaluate the impact of the implementation delays.

Key factors that contributed to Rescue 21 cost overruns and schedule delays were inadequacies in requirements management, project monitoring, risk management, contractor cost and schedule estimation and delivery, and executive-level oversight. Accordingly, the estimated total acquisition cost for Rescue 21 has increased from $250 million in 1999 to $710.5 million in 2005, and the timeline for achieving full operating capability has been delayed from 2006 until 2011. USCG officials agreed that improvements need to be made to the management of the Rescue 21 project, and they are taking steps to address some of these issues. USCG's current acquisition cost estimate of $710.5 million is not viable. Our analysis of contractor performance trends indicates that additional overruns will likely bring the total acquisition cost to $872 million, unless critical changes are made. Additionally, USCG's schedule is uncertain due to on-going contract item renegotiations and pending decisions regarding vessel asset tracking functionality. Finally, further cost increases may result from the variability of costs for tower preparation and construction. To improve its current cost and schedule estimates, USCG plans to complete an integrated baseline review after contract items are renegotiated; however, a date for completing this review has not been established. The delays in deploying Rescue 21 could affect sites awaiting modernization. For example, key functionality, such as improved direction finding and improved coverage, will not be available for a significant period of time, and legacy equipment may fail, requiring costly repairs and upgrades to address coverage gaps and other operational issues.



Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Implemented" or "Not implemented" based on our follow up work.

Director:
Team:
Phone:
David A. Powner
Government Accountability Office: Information Technology
No phone on record


Recommendations for Executive Action


Recommendation: To more effectively manage the remaining development and deployment of Rescue 21, the Commandant of USCG should ensure that USCG executive-level management oversees the project's progress toward cost and schedule milestones and management of risks.

Agency Affected: Department of Homeland Security: United States Coast Guard

Status: In process

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: To more effectively manage the remaining development and deployment of Rescue 21, the Commandant of USCG should ensure that USCG executive-level management establishes a milestone to complete Rescue 21's integrated baseline review, to include all renegotiated contract items.

Agency Affected: Department of Homeland Security: United States Coast Guard

Status: In process

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Recommendation: To more effectively manage the remaining development and deployment of Rescue 21, the Commandant of USCG should ensure that USCG executive-level management uses the results of this baseline review to complete a revised cost and schedule estimate.

Agency Affected: Department of Homeland Security: United States Coast Guard

Status: In process

Comments: When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.