Coast Guard Delays First Ships for New Fleet

The Coast Guard delayed acceptance of the first in a series of massive ships being built by Lockheed Martin and Northrop Grumman that are the cornerstone of its troubled multibillion-dollar fleet modernization.

Coast Guard officials said recent testing identified problems with a number of the ship's systems, including those dealing with safety, launch and recovery applications, and communications. Because of those issues, the agency won't accept the first 418-foot, 4,300-ton National Security Cutter until late April or early May.

The Coast Guard last summer acknowledged that the combined cost of the first two cutters more than doubled, to roughly $1.14 billion, under the agency's program, called Deepwater.

The agency projected then that the first ship's final cost would be $640.7 million. That price tag should not increase unless acceptance is delayed beyond May, Rear Adm. Gary Blore, assistant commandant for acquisition, said yesterday in a conference call with reporters.

The second cutter, which is expected to cost $495.7 million, had been slated for acceptance in October but also will be pushed back as lessons learned from the first ship are applied to it, said the program's executive officer, Rear Adm. Ronald R¿bago. After the first cutter is accepted, the agency will run operational trials for 18 to 24 months.

"The industry team is working closely with the Coast Guard to deliver the NSC on time according to the mutually agreed upon schedule," said Megan Mitchell, a spokeswoman for Integrated Coast Guard Systems, a joint venture between Lockheed and Northrop Grumman that was awarded the original Deepwater contract in 2002. Northrop Grumman builds the ships, and Lockheed provides communications equipment and other technology.

The cutters are expected to have a maximum speed of 28 knots, or roughly 32 miles per hour, and include a flight deck able to accommodate manned and unmanned aircraft, and updated command and control systems.

Rep. Elijah E. Cummings (D-Md.), chairman of the House subcommittee on coast guard and maritime transportation, said the Deepwater program has repeatedly disappointed lawmakers and the public. "I'd rather we get it late and right than early and wrong," Cummings said in a telephone interview.

The delays continue a string of setbacks for the Coast Guard's 25-year, $24 billion fleet modernization program.

The Coast Guard in May revoked its acceptance of eight 123-foot patrol boats due to hull buckling. A month later, problems were found with other equipment and systems.

The eight ships were removed from the waters off Florida in late 2006 and permanently decommissioned in April. Some electronics issues on them were first identified in 2003.

The Justice Department, which is investigating the Deepwater contract, has told the contractors not to destroy certain documents, and the companies have said they are cooperating.