Cantwell bill would tighten oversight of Deepwater contracting system

WASHINGTON — Sen. Maria Cantwell has introduced a bill to change the Coast Guard's contracting system for its troubled Deepwater program, the agency's $24 billion effort to replace its aging fleet of patrol boats, cutters, helicopters and planes.

The project, hundreds of millions of dollars over budget and behind schedule, has been the focus of three congressional hearings and four negative government audits.

The Integrated Deepwater Reform Act would mandate more competition for portions of the massive program, which is being run as a partnership between the Coast Guard and two large defense contractors, Northrop Grumman and Lockheed Martin.

"Outsourcing management and oversight of Deepwater to industry has not worked," Cantwell said in a statement. "The lack of transparency combined with technical failures has wasted tens of millions of taxpayer dollars."

Cantwell chairs the Senate Coast Guard subcommittee.

Government audits say the Coast Guard erred in giving the private contractors too much control over the project, which limited cost containment.

Cantwell's ally on the issue is Sen. Olympia Snowe, R-Maine, a member of the subcommittee.

However, it's uncertain whether Minority Whip Trent Lott, R-Miss., will support the bill. Lott, who's also on Cantwell's committee, played a major role in crafting the original Deepwater contract, which put millions of dollars and many jobs into his home state.

Lott's office said staff members were looking at the bill.

One of Cantwell's proposals would require a third-party entity with expertise in major acquisitions to review all the proposed Deepwater projects for which contracts have not yet been issued.

The bill also would make the Coast Guard certify to Congress that the proposed technology used for the ships meets design and cost objectives, and give the Government Accountability Office an oversight role.

Last week, the Coast Guard canceled one $600 million portion of the contract for patrol ships known as Fast Response Cutters (FRC).

The agency said it would rebid the contract and manage it internally. The cutter's current design has structural flaws and is too heavy, Coast Guard officials have said.

The bill also would limit the ability of the main contractors to award subcontracts to companies in which they have a financial interest.

"We are looking to make sure that America's taxpayers get the best deal and that the Coast Guard is able to get back on course," Cantwell spokeswoman Katharine Lister said.

Northrop and Lockheed's Deepwater spokesman, Troy Scully, said the companies could not comment before they had reviewed the legislation.

Alicia Mundy: 202-662-7457 or amundy@seattletimes.com