Radio frequencies, or  channels, carry the information. The Coast Guard Has Taken Advantage of Opportunities for Quick AIS Installation, but Much Work Remains

The total cost and time frame for the development of a nationwide AIS  remain uncertain. The Coast Guard expects planning for  the technical requirements to be completed between December 2004 and  February 2005. According to the Coast  Guard, the cost estimate is preliminary, because geographic and other  factors are expected to significantly affect the cost of installation at  different locations, and the impacts are yet to be determined. Bringing AIS into service in the 10 VTS areas should improve vessel- monitoring capability at these locations. On the basis of its experience installing AIS in the VTS areas, the  Coast Guard estimates that installing AIS equipment nationwide could cost  between $62 million and $165 million—a preliminary estimate that one  Coast Guard official responsible for reviewing such programs  characterizes as “ballpark.”

		Long-Range Planning for Nationwide AIS Installation Now Under Way

At the same time the Coast Guard is completing installation of AIS  equipment in the 10 VTS areas, it is also planning for nationwide AIS  installation, in waters where most of the needed infrastructure is not now  available. Challenge and Opportunity Could Affect Nationwide AIS Development

As of June 2004, the continuing dispute between MariTEL and the Coast  Guard over various frequency issues was in the hands of FCC, which  expected to respond in summer 2004. At issue are competing views over  the use of the internationally designated AIS frequencies. Depending on how  FCC responds, and any subsequent actions by the interested parties, one  factor that offers an opportunity to lower the federal government’s costs is  the demonstrated or expressed willingness of certain local port entities to  shoulder the expense and responsibility for AIS installation if they, along  with the Coast Guard, can use AIS data for their own purposes. Then in February 2004, citing a desire to protect its licensed rights and to  reach a quick “resolution to the AIS frequency controversy,” MariTEL  submitted a proposal to FCC, “to share its licensed rights to channels 87B  and 88B for use by ship stations and by the USCG at no cost.” In this  proposal, MariTEL generally agreed with NTIA’s proposal to use channels  87B and 88B only for AIS, but unlike NTIA, it sought to limit access to the  signals to ships, MariTEL, the Coast Guard, and the St. Lawrence Seaway  Development Corporation. The inability of  vessels to broadcast and monitor the U.S frequencies and the  internationally designated AIS frequencies simultaneously heightens the  risk of collisions. Depending on FCC’s Response, Local Needs for AIS Data Create a Possible Cost-Sharing Opportunity

An opportunity that may help the Coast Guard speed AIS installation at  lower cost to the federal government is potential partnerships between the  Coast Guard and local port entities. Conclusions

The development of AIS nationwide is an important step in the overall  effort to increase port safety and security. At that time, we will send copies of this report to the  Department of Homeland Security and the Federal Communications  Commission.
Why GAO Did This Study

As part of international efforts to ensure maritime safety and security--and to carry out its mandates under the Maritime Transportation Security Act of 2002--the U.S. Coast Guard is developing an automatic identification system (AIS) that should enable it to monitor ships traveling to and through U.S. waters. For AIS to operate nationwide, ships need equipment to transmit and receive AIS signals, and the Coast Guard needs shore stations and designated radio frequencies to keep track of the ships' identities and movements. Yet unresolved frequency issues between the Coast Guard and a private company, MariTEL, have come before the Federal Communications Commission (FCC). GAO reviewed federal agencies' progress in developing AIS nationwide and identified certain challenges and opportunities in completing the work.

What GAO Found

Because the Coast Guard is in the early stages of progress toward nationwide AIS development, the total cost and completion time are uncertain. The Coast Guard has taken advantage of opportunities to bring AIS into service quickly in 10 areas where vessel-monitoring technology already exists, and it is simultaneously defining and planning for full nationwide coverage. The Coast Guard has only preliminary cost estimates for a nationwide system, because geographic and other factors will affect installation at different locations. The Coast Guard estimates that planning and testing will be completed, and a request for proposals from potential contractors issued, between December 2004 and February 2005. The Coast Guard faces both challenges and potential opportunities in its development of a nationwide AIS. Nationwide development depends in part on how FCC resolves a continuing dispute between federal agencies and MariTEL over issues including who should have access to the internationally designated AIS frequencies and for what uses. To help protect its licensed rights to certain frequencies, MariTEL generally seeks either sole control over the international standard AIS frequencies or shared control with ships and the federal government. The federal government seeks a resolution that will reserve the internationally designated frequencies for AIS use by government and nongovernment entities. FCC expects to respond in summer 2004. This response--and whether it leads to any additional actions on the part of the interested parties--could affect the overall cost and pace of nationwide AIS development. Depending on FCC's response, one factor that offers an opportunity to reduce federal costs is that some local port entities are willing to assume the expense and responsibility for AIS construction if they can use AIS data, along with the Coast Guard, for their own purposes.