The U.S. Coast Guard commandant promised key senators April 18 that the service's move to take over lead systems integrator (LSI) duties for its massive and troubled Deepwater recapitalization program is significant and represents more than a minor contractual reorganization.

Adm. Thad Allen further outlined plans that could result in prime contractor Integrated Coast Guard Systems (ICGS), a joint venture of Lockheed Martin and Northrop Grumman, possibly losing individual Deepwater asset classes, as well as see shorter and smaller task orders under its contract renewal that would undergo far greater scrutiny over performance.

"There is a fundamental change in how we're doing business and the roles the Coast Guard will assume," Allen told the Senate Coast Guard authorization subcommittee.

He spoke after Sen. Olympia Snowe (R-Maine) pressed the commandant to respond to an ICGS representative's reported downplaying of the pending loss of its LSI role in Deepwater (DAILY, April 18). Allen, who announced the LSI takeover to reporters April 17, reiterated to the panel that he personally negotiated the Deepwater changes with Lockheed and Northrop chief executives.

Allen also promised that the Coast Guard and its parent Homeland Security Department will "vigorously pursue" potential reimbursements from contractors for failed or problematic acquisitions, namely the abandoned 123-foot patrol boat fleet.

As for other classes of equipment and services, the Coast Guard as LSI will re-examine each after the first-in-class is delivered to determine whether ICGS should retain the related contract or if the original provider should get it directly, the commandant said.

Under the new 43-month ICGS contract to take effect this summer, task orders revolve around ongoing Deepwater efforts but will range no more than 18-24 months and be subject to independent cost verifications and various other oversight measures that may not have been applied under the ICGS regime.

ICGS officials, meanwhile, were busy testifying in front of the House Transportation and Infrastructure Committee, where Democratic leaders have called for a Justice Department probe into Deepwater.

Leo Mackay, Lockheed Martin Coast Guard Systems vice president and general manager, and James Anton, Northrop Grumman Ship Systems vice president for Deepwater, stressed successes such as the new HC-144A Maritime Patrol Aircraft, the HH-65 helicopter re-engining program and other supposed progress throughout the potential 25-year, $24 billion program.

"The Deepwater program uses the depth of capabilities and experience of its industry partners to provide solutions in accordance with Coast Guard requirements," Mackay said. "The results so far indicate that Deepwater has made a difference in the effectiveness of the Coast Guard with regard to numbers of drug seizures, migrant interdictions and lives saved."