CG: Deepwater costs rise to $27.4 billion

CG: Deepwater costs rise to $27.4 billion
By Susan Schept - Staff writer
Posted : Friday Mar 12, 2010 5:56:02 EST

The price tag for the Coast Guard’s major acquisitions program, called Deepwater, rose to $27.4 billion, the service’s acquisition’s chief told a congressional subcommittee Thursday.

Rear Adm. Ronald Rábago said that he did not expect the costs to increase any further. Last summer, the Coast Guard acquisitions directorate reported that the program would cost $26.3 billion over 25 years.

Rep. Elijah Cummings, D-Md., the chairman of the House subcommittee on Coast Guard and maritime transportation, praised Rábago and his staff for bringing the Deepwater program under control since the service stood up its own acquisitions department in 2007. Rábago testified that the problems and cost overruns with the national security cutters have been ironed out and everything was on track for the other surface ships under production.

“It has simply been phenomenal,” Cummings said. “We have been very pleased with what you have been able to achieve.”

The tone from the congressional panel was a marked contrast to blistering criticism the Coast Guard received in the past for its management of the Deepwater acquisition program, a massive project to replace the service’s aging ships and aircraft. Deepwater, now set to be completed in 2027, has been beleaguered by delays and escalating costs. The program’s estimated cost was $17 billion in 1998, with a completion date of 2018.


Rest of article at: http://www.navytimes.com/news/2010/03/coastguard_acquisition_031210w/


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unhappycamper comment: Only $10 billion over budget? No problem, we'll cut us some Social Security or Medicare to pay for it.