In addition to the capabilities described in figure 1, according to the Coast  Guard, the NSC also has the following capabilities that go beyond those of  an HEC:    NSC’s engine and propulsion systems are more efficient than the  HEC’s; allowing the NSC to transit faster while burning less fuel;  the higher transit speed of the NSC allows it to maximize the time that  it operates inside of the mission area;  the NSC has the ability to conduct missions in rougher seas than the  HEC; and  the NSC has more comfortable accommodations for the crew, with  larger sleeping and living areas that include many modern  conveniences, such as computers, entertainment systems, and exercise  facilities. Delays in the Delivery of the NSC and Its Support Assets Have Created an Anticipated Loss of Operational Days and Will Result in the NSC Being Deployed without Certain Operational Capabilities

Delays in the delivery of the NSC and its associated support assets— primarily unmanned aircraft and small boats—have created an anticipated  loss of cutter operational days and delays in achieving certain other  operational capabilities. Enhancements to the NSC’s capabilities following  the 9/11 terrorist attacks, as well as damage to the shipyard and the  exodus of workers as a result of Hurricane Katrina, contributed to these  delays. As a result, the Coast  Guard cannot determine the extent to which the NSC’s final capabilities  will exceed those of the HECs at this time and it may take several years  before some of these capabilities are realized. However, because the acquisition program is in its early stages, the Coast  Guard has not yet determined a date for the deployment of an NSC-based  unmanned aircraft. Until these onboard deficiencies are addressed and the NSC’s unmanned  aircraft and new small boats are delivered, the NSC will be operating  without planned assets that would enhance its capabilities over those of  an HEC. The Coast Guard Plans to Mitigate Identified Operational Gaps by Upgrading Certain High Endurance Cutters and Using Existing Support Assets, but the Success and Costs of These Plans Cannot Be Fully Determined

To mitigate the operational gaps identified to date that have been created  by delays in deployment of the NSC and its associated support assets, the  Coast Guard plans to keep the HECs operational and to use existing air  assets and small boats until new assets are acquired. As a result, the Coast Guard has not determined the  extent to which existing small boats will help mitigate the operational gap  between the existing small boats that will be initially deployed on the NSC  and the new small boats with which the NSC will deploy in the future. The Coast Guard Is Working to Finalize Its Key Logistics Plan by October 2009, but Complete Logistics Costs Cannot Yet Be Determined

The Coast Guard has begun planning for the logistics support transition to  the NSC from the HEC, and is working to finalize its key NSC logistics  support plan by October 2009, but the Coast Guard cannot determine the  complete logistics transition costs. The Deepwater contractor developed  the initial NSC logistics plans, but in 2007, the Coast Guard assumed  responsibility for NSC logistical planning because, according to Coast  Guard officials, the contractor’s plans were deficient. For example, Coast Guard officials said that the contractor’s logistics  plans did not include the necessary details, such as how the contractor  would support the NSC after it becomes fully operational. The Coast Guard Continues to Develop Required Components of the National Security Cutter Deployment Plan

The Coast Guard has made some progress in developing a deployment  plan that is to address the logistics transition from the HEC to the NSC and  some of the costs of this transition and expects to complete this plan by  2012, as required by the MSAM. Further, while  the Coast Guard expects to complete the Integrated Logistics Support Plan  by October 2009, the plan may not include the required details of logistics  support documents to be used and time frames for completing them  because the Coast Guard is still determining how to proceed with  finalizing the plan and did not commit to including these details. Recommendation for Executive Action

To meet MSAM requirements and aid the Coast Guard in making  operational decisions, GAO recommends that the Commandant of the  Coast Guard ensure that as the Coast Guard finalizes the Integrated  Logistics Support Plan for the NSC, that the plan includes the required  logistics support documents to be used and the time frames for completing  them. Coast Guard: Preliminary Observations on Deepwater Program Assets  and Management Challenges.
Why GAO Did This Study

As part of its more than $24 billion Deepwater program to replace aging vessels and aircraft with new or upgraded assets, the Coast Guard is preparing the National Security Cutter (NSC) for service. GAO previously reported on Deepwater assets' deployment delays and the Coast Guard's management of the Deepwater program. GAO was legislatively directed to continue its oversight of the Deepwater program. As a result, this report addresses: (1) the operational effects, if any, of delays in the delivery of the NSC and its support assets of unmanned aircraft and small boats; (2) Coast Guard plans for mitigating any operational effects and any associated costs of these plans; and (3) the extent to which the Coast Guard has plans, to include cost estimates, for phasing in logistics support of the NSC while phasing out support for the High Endurance Cutter (HEC) it is replacing. GAO's work is based on analyses of the (1) operational capabilities and maintenance plans of the NSC and its support assets and (2) data on the HECs' condition; comparison of an NSC and HEC; and, interviews with Coast Guard officials.

What GAO Found

Delays in the delivery of the NSC and the support assets of unmanned aircraft and small boats have created operational gaps for the Coast Guard that include the projected loss of thousands of days in NSC availability for conducting missions until 2018. Enhancements to the NSC's capabilities following the 9/11 terrorist attacks and the effects of Hurricane Katrina were factors that contributed to these delays. Given the delivery delays, the Coast Guard must continue to rely on HECs that are becoming increasingly unreliable. Coast Guard officials said that the first NSC's capabilities will be greater than those of an HEC; however, the Coast Guard cannot determine the extent to which the NSC's capabilities will exceed those of the HECs until the NSC's support assets are operational, which will take several years. To mitigate these operational gaps, the Coast Guard plans to upgrade its HECs and use existing aircraft and small boats until unmanned aircraft and new small boats are operational, but because the mitigation plans are not yet finalized, the costs are largely unknown. Also, the Coast Guard has not yet completed operational requirements for the unmanned aircraft or new small boats. As a result, the Coast Guard has not determined the cost of the HEC upgrade plan or the operational gap created by the delay in fielding new support assets for the NSC. The Coast Guard's logistics support plans for its transition to the NSC from the HEC are not finalized, and it has not yet fully determined transition costs. The contractor developed the initial NSC logistics plans, but Coast Guard officials said the plans lacked needed details, such as how the contractor would support the NSC after it becomes fully operational, and so, in 2007, the Coast Guard took over logistics planning. Coast Guard acquisition guidance states that an Integrated Logistics Support Plan should be completed by the time production of an asset is started. Although the first NSC has already been delivered, the Coast Guard has not yet finalized this plan, but expects to do so by October 2009. While the Coast Guard has developed an interim plan, it did not commit to including required logistics support documents to be used or time frames for completing them in the Integrated Logistics Support Plan because it is in the process of determining how to finalize the plan. Ensuring the plan includes these documents and time frames would better prepare the Coast Guard to support the NSC and aid it in making operational decisions given that the Coast Guard has not yet developed a deployment plan or completed cost estimates of the logistics transition from the HEC to the NSC.