The Troubled Waters Of "Deepwater"
Congressman: The Country Is Less Safe Than Before $24 Billion Refurbishment
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Preview: Deepwater
Only On The Web: An ex-Coast Guard officer tells Steve Kroft that having contractors run the agency's upgrade program was like asking "the fox to develop the security plan for the henhouse."
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Kroft's Reporter's Notebook
Only On The Web: "60 Minutes" correspondent Steve Kroft discusses his upcoming exposé of the Coast Guard's botched effort to upgrade its fleet.
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Deepwater
In Full: An ex-Coast Guard officer tells Steve Kroft that having contractors run the agency's upgrade program is like asking "the fox to develop the security plan for the henhouse."
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Retired Coast Guard Capt. Kevin Jarvis talks with Steve Kroft. (CBS)
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After 9/11, few government entities were as poorly prepared to take on an expanded role as the U.S. Coast Guard. Already charged with sea rescues, drug interdictions and immigration enforcement, the Coast Guard became the primary maritime force for homeland security, tasked with protecting 95,000 miles of coastline and 361 ports with an old and antiquated fleet.
So five years ago the Coast Guard undertook a massive modernization program called "Deepwater" and ended up way over its head. As correspondent Steve Kroft reports, the $24 billion project has turned into a fiasco that has set new standards for incompetence, and triggered a Justice Department investigation.
A promotional video for the biggest project the Coast Guard had ever taken on looked impressive enough: "Deepwater" would include 91 new ships and 124 smaller boats, plus new planes and helicopters.
But five years into the program, the Coast Guard has fewer boats and ships now than it did before it started. Congressman Elijah Cummings, chairman of the Coast Guard oversight subcommittee calls the program, "a mess."
"Here it goes to the national security of this country," Rep. Cummings says. "That's serious business. Particularly after 9/11. And so, you know, it pains me. It really does."
Asked if he thinks the Coast Guard in worse shape now than it was before it began Deepwater, the congressman tells Kroft, "They say they're not. But I think they are."
You can begin with the fact that the Coast Guard spent nearly $100 million to ruin eight patrol boats. The plan was to take the aging workhorses of the fleet, the 110-foot Island Class patrol boats, and lengthen them by 13 feet, adding a launch ramp for small inflatable boats and expanding the superstructure. But something went drastically wrong at the Bollinger Shipyard near New Orleans, where the first eight boats were extended.
"What you see is a lot of buckling. In the floor. And spaces where you know something is bending that shouldn't be bending in other words it should be flat," Cummings recalls.
After just a few weeks on the water, all eight boats experienced severe structural problems and had to be pulled out of service. They are currently tied up at a pier at the Coast Guard’s Baltimore yard waiting to be decommissioned. Their problems, the Coast Guard says, are too serious to be fixed.
Rep. Cummings wanted to show Kroft the cracks and buckling himself, but the Coast Guard refused to let him take 60 Minutes on its base.
"We should not allow situations to occur where you spend $14 million for a boat that doesn't float," Cummings says.
"You don't think it was seaworthy?" Kroft asks.
"No. And they don't either. That’s why when I say ‘they,’ I'm referring to the Coast Guard," the congressman replies.
How does that happen?
Says Cummings, "I don't know. The thing I'll tell you and I think I know partly. It started with some people not either paying attention. Or people who didn't care. Or people who were greedy. Or people who were incompetent. Or people who lacked integrity. Or a combination of all."
That pretty much sums up the sentiments of just about every government organization that has taken the time to investigate Deepwater and its problems, which go far beyond the patrol boats.
And there has been no shortage of whistleblowers shouting "Mayday." Some of the blame can be traced to the original Deepwater contract.
From the outset, the Coast Guard didn’t have the resources to run a $24 billion project. So it outsourced the entire program to the private sector—not just the construction—but the day-to-day management of the contract. It went to a company called Integrated Coast Guard Systems, a joint venture of Lockheed Martin and Northrop Grumman that had been formed specifically for this job. Not surprisingly, the joint venture picked Lockheed Martin and Northrop Grumman to do the lion's share of the work.
One of the first people to send up a warning flare about the contract was Captain Kevin Jarvis, who, until his retirement last fall, commanded of the Coast Guard’s Engineering and Logistics Center.
"People have told us, ‘Look, the people that were supposedly managing the contractors were, in many cases, the contractors themselves.’ The same companies. Correct?" Kroft asks.
"Correct. Correct. People say that this is like the fox watching the henhouse. And it's worse than that," Capt. Jarvis says. "It's where the government asked the fox to develop the security system for the henhouse. Then told 'em, ‘You're gonna do it. You know, by the way, we'll give you the security code to the system and we'll tell you when we're on vacation.'"
Produced by L. Franklin Devine
© MMVII, CBS Worldwide Inc. All Rights Reserved.

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See all 69 CommentsGary Vreeland, 410 707 1104
Joecoastie sends.
It should be important to note that there are many other additional concerns with the DHS and CoastGuard.
-- MARAD RESERVE FLEET, also known as the "Ghost Fleet", .. still exist at least 130 vessels with CONGRESSIONAL MANDATE for DISPOSAL no later than Sep of 2006.
..risks outside .., but what comes of a giant vessel easily "getting loose" and drifting downstream in San Fran. Bay, Jamestown, or Galveston?
--? the true history of the SS NORWAY (Prev. SS France and now SS BLUE LADY ) which had a "Boiler Explosion" in port of Miami on May 25th, 2003.
.. TSA investigation, .. along with Coast Guard and a plethora of other parties.
.. public release by AlQaeda exactly 2wksprior and broadcast17th of May that year onward quoted: "To Raise/Singe the floor right out from under their feet, the political and corporate interests of the United States and Norway."
..this caused extreme scares .. country of Norway, .. closure of US embassy and consulate facilities, and a global curiosity.
Feel free to examine these links to news articles of the time period:
moved to http://remedials.org/sunklinks.html
-Wilfred L. Guerin
WilfredGuerin@gmail.com
These are the links to News articles referenced.
Transcript (CNN)
http://edition.cnn.com/TRANSCRIPTS/0305/25/sun.05.html
News coverage of "Norway" May 25, 2003
http://news.google.com/archivesearch?q=may+25 2003 norway&sa=N&cid=8603442264145938
News of "Al Qaeda, Norway"
http://news.google.com/archivesearch?q=al qaeda norway
Transcript of Al Qaeda tape (CNN)
http://edition.cnn.com/2003/WORLD/meast/05/21/aljazeera.tape/index.html
BLUE LADY: http://news.google.com/archivesearch?q=%22blue lady%22&btnG=Search Archives
correlational search is flooded with irrelevant posts by IBB.GOV?
http://news.google.com/archivesearch?q=al qaeda norway ss
In defense acquisition a Uniformed Military Officer has absolutely no money to spend. So the Commendant, the Program Manager, the Project Engineer, zero dollars to spend. The person with the Money, the person who actually approves the payment of a contract is a Civil Servant. Take note that 60 Minutes and Congress talked to Uniformed Officers and Contractors, not a single Civil Servant was even mentioned. The question that will make a difference, but no news (propoganda) outlet will ask, "Who was the Execuitve Director of this project?" That is the Civil Servant with the money, that is how contracts are paid. This is the same situation as occured at Walter Reed and 60 Minutes didn't ask about any Civil Servants then either. So the question is, is 60 Minutes that inept, or is the US Civil Service that dangerous?
It is about time they got a new imagine, including a new company logo and sign that I would love to build for them for the bargain basement price of $2.7 billion, using the latest state of the art bubble gum, twine, duct tape and cardboard. Of course the current corp. tag-line would be changed to reflect the time. From "We never forget who we work for" to "Bend over America, We are right behind you"
You suck as a news agency and I'm tired of having you as just another lying mouth for Cheney and his cronies.
It is about time they got a new imagine, including a new company logo and sign that I would love to build for them for the bargain basement price of $2.7 billion, using the latest state of the art bubble gum, twine, duct tape and cardboard. Of course the current corp. tag-line would be changed to reflect the time. From "We never forget who we work for" to "Bend over America, We are right behind you"
Fortunately or unfortunately depending on your perspective, the Coast Guard has a relatively strong chain of command. So if the Commandant says that this ship is going to sail, it's going to be accepted and it's going to sail and all will be well with the world. No contracting officer is going to say "no".
It's that same strong chain of command that allows the Coast Guard to quickly do good things in the face of disasters like Katrina.
I'm unimpressed with the piece because I don't think it got to the bottom of the problem of Deepwater.
I would love to see the Coast Guard get some relatively newer decommissioned Navy vessels to expand the fleet. The amount of money being spent for Deepwater could do an excellent rehab and refit.
Report all the news. Think I'll contact mediamatters." Posted by janem4 at 08:49 AM : May 20, 2007
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Well, jane, we know you don't like feistein, but why don't you post some FACTS to back up your spineless accusations?
Do you KNOW that Feinstein's "hubby" had anyting to do with this?
Do you KNOW that Cheney isn't getting kickbacks from the Halliburton debacle in Iraq?
Do you KNOW *** you are talking about?
Contact mediamatters?? Is that a threat? DO IT! I'd be curious to know what they have to say.
OBTW: Corruption isn't a "liberal only" vice; to wit: Randy Cunningham, et al. LOL!!
Posted by USN_Ret at 07:27 PM : May 20, 2007
So how many military acquisitions have you worked on, Chief?
The Civil Servant only controls the money; the military determines what they want, writes the spec, and approves final delivery. In addition, there are numerous "progress meetings" and "milestones" that have to be met along the way. The military "customer" attends these meetings and either approves or disapproves the milestones. When these "milestones" are met "progress payments" are made to the contractor. When they are not met, there are no payments, unless, of course, there is corruption.
Corruption seems to prevail in military acquisitions, mainly because the people involved are not fully accountable for the funds. It doesn't come out of their pockets and they seldom, if ever, have to pay it back when things go wrong.
The Coast Guard has always been the step child when it comes to budgets and it always will be. We had helicopters whose doors would fall off on regular intervals, in the 60's we had cutters whose flight decks would crack. Lately our hjelicopters were underpowered. Think of this, how would you like to pilot an aircraft in which one of the things you automatically did was search for a place to crash land in case you lost power in your engines.
Trust me, this will go on for a long time more before it gets better.
Oh well - what do I know. I'm just a middle class American citizen. My opinion doesn't matter.
I would like the Coast Guard to give those vessels to my company. ACET/SugarCityCane. We can use them on Bakers Island to help build our Ethanol Company.
We are a new company that will grow SugarCane on the Equator on 1-2 acre size Aquatic-Rafts hydroponically. We will need the Coast Guard to be our Security patrols in the region. The Island is South of Hawaii on the Equator. It will be safe duty, no hurricanes, typhoons, or cyclones. Use our Ethanol to run your Air Conditioning.
Since we are new, I hope to get the vessels from the Coast Guard with a payment plan so they can recoop their investment. But I need to build the rafts first and begin selling the SugarCane juice for Ethanol production.
Hope you shipmates will hear my SOS so I can save you and you can save me! What do you say?
Dominic Jermano/ CEO Charcoal Ethanol Organization & Chairman of Energy Oceanography at ACET: Aquatic Charcoal Ethanol Technicorp/ SugarCityCane
http://www.sugarcitycane.com
A McHales Navy Enterprise. smiling
There is soooo much corruption and lying and overruns in costs and stealing--that surely we all know the trickle down theory. Yes, I blame this on Bush and Co. In any corporation the onus of a culture of corruption is pretty cut and dried. Incompetence, greed, corruption and dishonesty at the top--then it seeps into the very pores and fabric of an organization. Ladies and Gentlemen, that culture is the present administration and the programs for privatizing government work they put into place--the orgainization is almost every government job from mail delivery to contractors for HS and the war and the biggest loser as usual--the American tax payer.
Who was the marine engineer in charge of making the design changes on the 8 lengthings? Normally in business, changes get approved by the customer,in this case the Coast Guard. So , who in the CG approved the design changes? And why weren't these changes put thru extensive testing and sea trials with Boat 1 before proceeding with the next 7 boats
Here is my general conclusion on this awful and very ameture-ish bit of news-journalism -- 60 minutes either let themselves be used by politicos on what amounts to a very minor and fixable issue (and it pains me as a progressive to say the users in this case are Dems); it is also my guess they were ALSO manipulated by commercial competitors of these contractors (Lockheed and Northrup) who are scheming themselves to get the contracts opened up to bid again. (Look at the stuff on-line and in the public record and it seems clear that this Congressman Gene Taylor guy positioning himself as some kind of hero is doing EXACTLY that. He just happens to have in his Mississippi district a shipyard that would likely benefit in the hundreds of million in orders if the Bollinger shipyard in Louisiana is discredited on the small littoral ships business --which the Navy is teeing up right now. (Did anyone look into this at CBS...my God, I mean it's been 12 hours since the story and I already got this info.)
Here is my general conclusion on this awful and very ameture-ish bit of news-journalism -- 60 minutes either let themselves be used by politicos on what amounts to a very minor and fixable issue (and it pains me as a progressive to say the users in this case are Dems); it is also my guess they were ALSO manipulated by commercial competitors of these contractors (Lockheed and Northrup) who are scheming themselves to get the contracts opened up to bid again. (Look at the stuff on-line and in the public record and it seems clear that this Congressman Gene Taylor guy positioning himself as some kind of hero is doing EXACTLY that. He just happens to have in his Mississippi district a shipyard that would likely benefit in the hundreds of million in orders if the Bollinger shipyard in Louisiana is discredited on the small littoral ships business --which the Navy is teeing up right now. (Did anyone look into this at CBS...my God, I mean it's been 12 hours since the story and I already got this info.)
Here is my general conclusion on this awful and very amatureish bit of newsjournalism -- 60 minutes either let themselves be used by politicos on what amounts to a very minor and fixable issue (and it pains me as a progressive to say the users in this case are Dems); it is also my guess they were ALSO manipulated by commercial competitors of these contractors (Lockheed and Northrup) who are scheming themselves to get the contracts opened up to bid again. (Look at the stuff on-line and in the public record and it seems clear that this Congressman Gene Taylor guy positioning himself as some kind of hero is doing EXACTLY that. He just happens to have in his Mississippi district a shipyard that would likely benefit in the hundreds of million in orders if the Bollinger shipyard in Louisiana is discredited on the small littoral ships business --which the Navy is teeing up right now. (Did anyone look into this at CBS...my God, I mean it's been 12 hours since the story and I already got this info.)
Here is my general conclusion on this awful and very amatureish bit of newsjournalism -- 60 minutes either let themselves be used by politicos on what amounts to a very minor and fixable issue (and it pains me as a progressive to say the users in this case are Dems); it is also my guess they were ALSO manipulated by commercial competitors of these contractors (Lockheed and Northrup) who are scheming themselves to get the contracts opened up to bid again. (Look at the stuff on-line and in the public record and it seems clear that this Congressman Gene Taylor guy positioning himself as some kind of hero is doing EXACTLY that. He just happens to have in his Mississippi district a shipyard that would likely benefit in the hundreds of million in orders if the Bollinger shipyard in Louisiana is discredited on the small littoral ships business --which the Navy is teeing up right now. (Did anyone look into this at CBS...my God, I mean it's been 12 hours since the story and I already got this info.)
The "whistleblower" You Tube guy wasn't removed from the project or fired by Lockheed, as 60 minutes let HIM say (unedited -- which they wouldn't let Admiral Allen be). Rather according to public documents I found he was PROMOTED away from the CG thing to another project, encouraged to communicate his concerns to the shipbuilders, then quit Lockheed on his own accord.
Apparently LM did all sorts of due diligence to see that he was fairly treated in his allegations (a binders worth of documents are in the public record from the LM HR files.) He has been approaching them for a job and increased pay as recently as this year before he made himself a You Tube star. Mmmm... wonder if there is an axe to grind there?
Several new Navy ships are using the same technology. Note that 60 Minutes interviewed ZERO people in that story who were objective (Elijah Cummings -- again it pains me to say -- runs UNOPPOSED in Balitmore every two years, and is interested in discrediting the GOPpers who preceded him in the committee (such as LoBiando I think.) As ranking member during this whole Deepwater process as it unfolded beginning 4 years ago, WHERE WAS Mr. Cummings. He never expressed concern on these issues before. I have seen texts of Rep. Taylor speeches up and down the Gulf Coast praising Deepwater, the CG and the industry partners over and over again. (Once again, in 12 hours I have found this... Where are the producers?)
FINALLY, the story acts like Deepwater has done nothing in four years but waste money and break ships. However, I found several trustable sources that outline incredible process on several fronts that have turned the Coast Guard from an admirable and quaint arm of the Department of Transportation to probably the finest coastal security outfit on Earth. The copters, planes and radar/communications gizmos they have put in the field (or I guess on the sea) are the envy of the world. They would not have been able to be the Only arm of the Fed to actually make great accomplishments after Katrina in New Orleans without the Deepwater stuff. They have stepped up drug interdictions geometrically thanks to the stuff they have. etc, etc. Producers? Steve Kroft? CBS News put their name on that? As someone who defended them back in the Rather days against the right wing Wackos, I'm ashamed.
Anyway, I knew this thing was off from the moment the story clicked off. I found this stuff since then (AND got a good night's sleep.) This is I guess the final evidence that the Tiffany Network is now brought to you by Wal-Mart. At least Steve Kroft looked well tanned. Perhaps his Q ratings went up.
Saddest thing is, NO ONE will go to Jail!
They ra$% the american tax payer and no one will go to jail!
Follow up this story, with "the rest of the story", Paul Harvey made it entertaining and Edward R Murrow got it right.
They already risk life and limb for our protection from harm and crime, but why would the top levels subject the lower level employees to additional, irresponsible harm for the wealth of giant government contractors with no integrity?.... maybe they should check their offshore accounts for deposits from Northrop Grumman.
The "whistleblower" You Tube guy wasn't removed from the project or fired by Lockheed, as 60 minutes let HIM say (unedited -- which they wouldn't let Admiral Allen be). Rather according to public documents I found he was PROMOTED away from the CG thing to another project, encouraged to communicate his concerns to the shipbuilders, then quit Lockheed on his own accord.
Apparently LM did all sorts of due diligence to see that he was fairly treated in his allegations (a binders worth of documents are in the public record from the LM HR files.) He has been approaching them for a job and increased pay as recently as this year before he made himself a You Tube star. Mmmm... wonder if there is an axe to grind there?
Seems like you have access to private information of mine you should not. If you have that information you would know the info you put out is incorrect, incomplete and therefore your accusation is slander. Let's have your real name.
I did not leave LM willingly. I was forced out. I have many documents to prove it including my fighting until the last day. As for the promotion to Colorado. The Moorestown org removed me from DW against my will. Then my manager retaliated gainst me in my performance appraisal - as he said he would- then I was given projects that were well below the level I had been working. I posted elsewhwere and received a promotion to NORAD. (Something no one in NJ had a thing to do with). Then I was put on a "reduction in force list" 2 years later because I was unwilling to lie about the state of the NORAD contract just to keep our contractor staff from looking for other jobs. When i tried to move again I was told by LM personnel who interviewed me that 2 of my last 3 appraisals were so damaging no one would hire me. I have emails to prove that.
As for the radios being waterproof. Your comment is inane. Fisrt - no one expects a radio to work under water. We are talking about rain, sea spray and momentary dunking due to waves. Second - the CG didn't pick a radio LM did. The CG specified technical and environmental requirements. They picked one the CG did like elsewhere but that was on the bridge of the 270s where it was MUCH drier. The LM PM who picked it had no C4ISR background and had no idea he should have looked at the environmental requirements.
Again - what is your name and where did you get the data? Feel free to contact me through my email associated with the YouTube video. And. . feel free to keep pushing back I have no problem proving my side.
One more point on the radios. The radio was not hand-held - or a walkie talkie as you put it. It was mounted in the dash. Seems like you should get your arm around the facts a bit more. And again. . .to think my issue was that it wouldn't transmit under water is ridiculous. It wouldn't and needed to work in the rain, in sea spray and wave conditions
This interview and video is ridiculous. Everything about it from the congressmen, to the whistleblower, and especially the sensationlist reporter...my god could you make it any more Jerry Springerish?
I won't go into the specifics of the contract or shipbiuilding, but I will comment on the CG's readiness and stance. The USCG, even before 9:11, was responsible for protection of US waterways, coastline, ship inspections, and a thousand other assignments the general public never hears about could even fathom. We performed these jobs with equipment and personnel shortages then...just as we perform them now! We have never faultered in our job because we were short on something. We made due and got the job done. We are a small and very proud service with many, many jobs that we do very well.
My real point of posting here is to advise anyone to not listen to this kind of sensationlism reporting and learn the facts for yourself. I've always had a high opinion of 60 Minutes until I saw this video. I was involved in the Deepwater project for some while and that gives me very good insight on just how realistic this report is...and in my opinion it is simply a weak attempt at stirring controversy vs showing the real CG. 60 Minutes should try to save face and leave this type of reporting to Springer.
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