NOAA also procures and oversees hydrographic surveying and related  services from the private sector. Under this process, NOAA (1) identifies the areas in greatest  need of surveying, (2) evaluates resources, including funding and vessel  availability, and (3) develops an annual hydrographic surveying plan,  which identifies the resulting hydrographic survey priorities. However, NOAA  officials said they found this approach increasingly outdated because it  did not reflect changing ocean and shipping conditions or take advantage  of available technology. NOAA is Developing a Model to Better Assess Hydrographic Risks to Help Inform Prioritization Decisions

NOAA is developing a model intended to better assess hydrographic risks  as part of its effort to identify areas most in need of hydrographic  surveys—the first step in NOAA’s process for creating the hydrographic  surveying plan. NOAA’s Annual Report Compares the Cost of Collecting Its Own Survey Data to the Cost of Procuring Data from the Private Sector but Does Not Include All Costs

NOAA prepares an annual report that compares the cost of collecting its  own hydrographic survey data to the cost of procuring such data from the  private sector. Based on our review of NOAA’s cost comparison reports for fiscal years  2006 through 2016, NOAA did not in all instances report complete or  accurate cost data for its hydrographic survey program. NOAA did not include the cost of major  maintenance performed in 2010 on the hydrographic survey vessel  Rainier in its cost comparison reports from fiscal years 2010 through  2016. Contract administration for private sector hydrographers. In addition to incomplete costs for some activities, we also noted that  NOAA did not accurately report certain costs of the hydrographic survey  program in the year to which those costs should be assigned. In some instances, officials identified specific steps and  associated time frames to carry out these actions. However, NOAA officials could not yet identify the steps or associated  time frames for carrying out other actions to improve the completeness  and accuracy of cost data. For example, to help improve NOAA’s process  for tracking depreciation costs of capital assets—such as vessel  acquisition or equipment, repair, and maintenance—NOAA officials said  they planned to implement an improved process in fiscal year 2019 but  did not identify the specific steps to implement this process. Without ensuring that its efforts to improve its cost  comparison reports include actions to fully track capital asset depreciation  costs and account for ships in port undergoing major maintenance, NOAA  may be unable to prepare cost comparison reports that reflect the full cost  of its hydrographic survey program, as called for in the agency’s standard  operating procedure. NOAA Has Taken Steps to Increase Private Sector Involvement in Data Collection, but Has Not Developed a Strategy for Expanding Such Involvement as Required by Law

NOAA has taken steps aimed at increasing private sector involvement in  its hydrographic data collection program, such as streamlining its  contracting process and increasing communication with contractors. For example, NOAA developed a centralized process for competing and  awarding contracts in 2003, which NOAA officials said reduced  administrative costs and contract award time. As a  result of implementing a centralized process for competing and awarding  contracts, NOAA officials said they increased the number of private sector  firms under contract, from five during the 2003-2008 contract period to  eight during the current 2014-2019 contract period. NOAA officials said the agency intends to develop a strategy describing  how it plans to expand private sector involvement in the hydrographic  data collection program—which the Ocean and Coastal Mapping  Integration Act required the agency to submit in a report to relevant  congressional committees in 2009—and it will use the 2010 Ocean and  Coastal Mapping and Contracting Policy to guide this effort. However, NOAA officials did not  provide specific information about how they intend to develop the  strategy, what elements it will contain, or when it will be completed. Without developing such a strategy, NOAA may have difficulty minimizing  duplication and taking maximum advantage of private sector capabilities  in fulfilling NOAA’s mapping and charting responsibilities. Without such a strategy, NOAA may have difficulty minimizing  duplication and taking maximum advantage of private sector capabilities  in fulfilling NOAA’s mapping and charting responsibilities. Recommendations for Executive Action

We recommend that the Secretary of Commerce direct the NOAA  Administrator to take the following two actions: ensure that NOAA’s efforts to improve its cost comparison reports  include actions to fully track capital asset depreciation costs and  account for ships in port undergoing major maintenance in  accordance with its standard operating procedure, and develop a strategy for expanding NOAA’s use of the private sector in  its hydrographic survey program, as required by law. Regarding our recommendation that NOAA develop a  strategy for expanding its use of the private sector in hydrographic  surveying, NOAA stated that the agency will develop such a strategy  once it improves its approach for comparing its hydrographic survey costs  to those of the private sector.
Why GAO Did This Study

NOAA is responsible for collecting hydrographic data—that is, data on the depth and bottom configuration of water bodies—to help create nautical charts. NOAA collects data using its fleet and also procures data from the private sector. The Hydrographic Services Improvement Act of 1998 requires NOAA to acquire such data from the private sector “to the greatest extent practicable and cost-effective.”
GAO was asked to review NOAA efforts to collect hydrographic data. This report examines (1) how NOAA determines its hydrographic survey priorities, (2) NOAA's efforts to compare the costs of collecting its own survey data to the costs of procuring such data from the private sector, and (3) the extent to which NOAA has developed a strategy for private sector involvement in hydrographic data collection.
GAO analyzed relevant laws and agency procedures, NOAA cost comparison reports from fiscal years 2006 through 2016, and other NOAA information, such as hydrographic survey program priorities. GAO also interviewed NOAA officials and the eight survey companies that currently have contracts with NOAA.

What GAO Found

The Department of Commerce's National Oceanic and Atmospheric Administration (NOAA) uses a three-step process to determine its hydrographic survey priorities, according to agency documents and officials. NOAA first identifies areas in greatest need of surveying by analyzing data such as seafloor depth, shipping tonnage, and the time elapsed since the most recent survey. Second, the agency evaluates the availability of funding resources as well as the availability and capability of NOAA and private sector hydrographic survey vessels. Third, NOAA develops an annual hydrographic surveying plan that identifies survey priorities. To help inform the first step in this process, NOAA is developing a model to take advantage of new mapping technologies.
NOAA prepares an annual report comparing the cost of collecting its own hydrographic survey data to the cost of procuring data from the private sector but does not include all costs in its cost comparisons. Under its standard operating procedure, NOAA is to report the full cost of the hydrographic survey program, including equipment, maintenance, and administrative costs. GAO's review of NOAA's cost comparison reports from fiscal years 2006 through 2016, however, found that NOAA did not in all instances report complete or accurate cost data. For example, NOAA did not include the acquisition of a $24 million vessel in 2012, and in some cases it did not report certain costs in the year to which those costs should be assigned. NOAA officials said they recognized the need to improve the agency's tracking of costs, and they identified actions they intend to take but did not always provide information about specific steps to carry out these actions or associated time frames. For example, NOAA officials said they planned to implement an improved process in fiscal year 2019 for tracking the costs of capital assets such as vessels but did not identify specific steps to do so. They also said they plan to develop a system to better track maintenance costs but did not provide specific details or a time frame to do this. Without ensuring that its efforts to improve its cost comparison reports include actions to fully track asset and maintenance costs, NOAA may be unable to prepare cost comparison reports that reflect the full cost of its survey program, as specified in the agency's standard operating procedure.
NOAA has taken steps to increase private sector involvement in its hydrographic data collection program but has not developed a strategy for expanding such involvement as required by law. For example, NOAA moved to a centralized process for competing and awarding contracts, which NOAA officials said reduced administrative costs and contract award time and allowed NOAA to increase the number of private sector firms under contract from five to eight. However, NOAA did not develop a strategy for expanding its use of the private sector to minimize duplication and take maximum advantage of private sector capabilities, as required by law. NOAA officials said the agency intends to develop such a strategy but must first make improvements in its approach to comparing its own hydrographic survey costs to those of the private sector. However, NOAA officials did not provide specific information about how they intend to develop the strategy, what elements it will contain, or when it will be completed. Without developing such a strategy, NOAA may have difficulty minimizing duplication and taking advantage of private sector capabilities.

What GAO Recommends

GAO recommends that NOAA (1) ensure that its efforts to improve its cost comparison reports include actions to fully track asset and maintenance costs and (2) develop a strategy for expanding private sector involvement in the hydrographic survey program. NOAA agreed with GAO's recommendations.