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WASHINGTON, DC 20510

June 5, 2007

Admiral Thad W. Allen

Commandant, United States Coast Guard
2100 Second Street SW
Washington, DC 20593

Dear Admiral Allen,

As you know, on April 25th,the Senate Commerce Committee unanimously reported the
Integrated Deepwater Program Reform Act (S.924). This legislation addresses problems
the Deepwater program has experienced to date and gives the Coast Guard the tools it
needs to reform the program. At the heart of S.924 is a requirement for the Coast Guard
to conduct an independent and comprehensive Analysis of Alternatives (AOA) before
executing additional contracts, task orders, or work orders. Beginning an AOA sooner
than later is in the best interests of the Coast Guard, and we recommend you start the
process as quickly as possible.

The Deepwater program is in a period of transition, and the Coast Guard has made many
changes to key asset classes. It has suspended the Vertical Unmanned Aerial Vehicle
program, halted the conversion of the lID-foot patrol boats, and significantly changed the
Fast Response Cutter Program. The National Security Cutter has also experienced
setbacks. In light of these developments, reexamining the Deepwater program through a
comprehensive AOA conducted by an independent third-party is an essential step for the
service to take before proceeding with additional acquisitions. The Department of
Defense routinely performs AOAs when its recapitalization programs experience major
modifications, and we believe the recent plethora of changes to Deepwater's initial asset
mix merits this kind of programmatic assessment.

Weare aware of the concerns expressed by the Coast Guard and the contractors that
requiring an AOA could cause delays to the delivery of key Coast Guard assets and could
potentially increase costs. However, it is our understanding that this process as mandated
in S. 924 would have minimal, if any, impact on the assets' cost and delivery schedules.
The benefits of the assessment outweigh these potential risks by providing Congress and
the Coast Guard the assurance that this program will result in procurement of the most
effective mix of assets. Furthermore, any risk to cost increases or schedule delays would
be minimized if the Coast Guard chooses to begin the AOA process immediately.
The legislative process takes time, and time is working against the Coast Guard in this
instance. New assets are vital to your ability to carry out your appointed missions, and
we do not want to prevent those ships and aircraft from entering into service. But, we
cannot tolerate any more taxpayer dollars spent on inappropriate equipment. Therefore,
we request that you immediately begin the process of contacting an independent third-
party to conduct a thorough, comprehensive AOA for the Deepwater program, as our
legislation will require upon enactment.

We appreciate the steps you have already taken to begin the process of reforming the
Deepwater program, and we will continue to work closely with you on these issues in the
future.

Sincerely,

~~--'d-~~
Maria Cantwell
!
Chair
Subcommittee on Oceans,
Atmosphere, Fisheries and Coast Guard