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June 26, 2002

Coast Guard awards $16.95 billion Deepwater contract
U. S. Deputy Secretary of Transportation, Michael P. Jackson, joined by U. S. Coast Guard Commandant Thomas H. Collins, last night announced the award of a landmark contract valued at $11.04 billion for a fleet of new ships and aircraft, plus improved command and control systems, to meet the service’s homeland security and other mission needs.  In addition, the contract includes $5.91 billion for operating, maintenance, and sustainment costs for a value of $16.95 billion. The contract was awarded to Integrated Coast Guard Systems (ICGS), a joint venture established by Lockheed Martin and Northrop Grumman. 

Known as the ‘Deepwater Program,’ the ICGS award is the largest ever for the U. S. Coast Guard.  It calls for the delivery of the first ships and planes – and upgrades to some existing vessels – within the next five years.  This is the first time the Coast Guard has bundled procurement of several types of ships, aircraft and other equipment into an integrated procurement program. 

"The Deepwater Program will ensure that the Coast Guard continues to guarantee the nation’s maritime security," said Deputy Secretary Jackson.  "As America’s first line of defense for maritime homeland security, it is critical that the Coast Guard be able to identify and intercept targets of interest as far from U. S. shores as possible." 


The contract may extend up to 30 years.  Deepwater will involve the acquisition of up to 91 ships, 35 fixed-wing aircraft, 34 helicopters, 76 unmanned surveillance aircraft, and upgrade of 49 existing cutters and 93 helicopters, in addition to systems for communications, surveillance and command and control.   

"The tragic events of September 11th changed the world as we know it.  Homeland security, now more than ever, is a mission where we must succeed,” said Admiral Collins.   “As the leader in Maritime Homeland Defense, the Coast Guard must have the most capable ships, aircraft, sensors and communications technology available to protect our nation and carry out our many missions.  The Deepwater Program will give us the necessary tools to create an effective, layered defense of our nation’s maritime interests." 

The vessels and aircraft included in the ICGS procurement project make up the Coast Guard’s primary multi-mission coastal and offshore fleet -- larger Coast Guard cutters and aircraft which serve as the backbone of many missions including drug and illegal migrant interdiction, fisheries enforcement, pollution patrols, and homeland security patrols, boardings and inspections.  Command, control and communications systems will be designed not only to integrate operations of the new ships and planes, but also improve coordination of all Coast Guard operations, as well as with other Federal agencies and the Department of Defense.

Of 39 similar navy and coast guard fleets surveyed around the world, the U.S. Coast Guard's vessel fleet is the 37th oldest.  The Coast Guard's twelve 1960's era Hamilton class cutters are among the service's aging fleet slated for replacement under the Deepwater contract.  The 378-foot Hamilton class are the largest multi-mission, helicopter capable ships operated by the Coast Guard.  

Other existing ships that would be replaced include fourteen 1960’s vintage 210-foot Reliance class, and a variety of other ships, some dating back from World War II.  Aircraft readiness has also been a recurring problem in recent years with expenditures for repairs on the rise, and some of the Coast Guard’s existing helicopters cannot operate from the flight decks of some older cutters. 

The new ships and planes are coming at an opportune time for the Coast Guard.  In addition to increased homeland security responsibilities which involve “pushing our borders back” to protect our ports, waterways, and coastlines, the Coast Guard still has many missions vital to the nation’s physical, economic and environmental security.  Primary duties include: search and rescue, maritime emergency response, military operations, anti-drug patrols, illegal migrant interdiction, and fisheries enforcement. 

The Coast Guard’s Deepwater Program that led to the ICGS contract has been in development for five years.  The ICGS contract does not include smaller rescue and patrol boats, buoy tenders and workboats, icebreakers, or shore side facilities.

Coast Guard Commandant Admiral Thomas H. Collins said that the Northrop Grumman/Lockheed Martin team offered a superior solution, a strong management approach, a low-risk implementation strategy and an Open Business Model, all of which address the Coast Guard's modernization needs. This performance-based contract will develop, acquire, and sustain an affordable, integrated system of surface, air, command, and logistics assets, while maximizing operational effectiveness at the lowest possible total ownership cost.

ICGS will manage over 100 companies from 32 states, as well as four international teammates, to implement its comprehensive plan for the Coast Guard. The ICGS Open Business Model approach maximizes competition and ensures best value to the Coast Guard and the nation's taxpayers throughout the life of the program.

ICGS has structured a program that will greatly enhance the Coast Guard's core system capability within the first five years of the contract, and ensure a low-risk transition to the full vision of the Deepwater system. In the first five years, ICGS will:

-- Provide a network centric capability of robust C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) resources on new and existing air, land and sea assets.

-- Upgrade older assets until new ships, aircraft and systems are fielded.

-- Provide more capable systems with greater speed, longer endurance, and better onboard working spaces, all with a common integrated support infrastructure that will significantly lower operating costs.

-- Design, build and deploy the first of a new class of cutters for the Coast Guard -- the National Security Cutter (NSC).

ICGS' long-range Deepwater solution will transform the force into mission-designed, fully integrated assets with complete life-cycle support.

Jointly owned by Northrop Grumman and Lockheed Martin, ICGS has the full commitment and necessary resources from both corporations to ensure meeting or exceeding the Coast Guard's expectations.

Headquartered in Rosslyn, VA, the ICGS core leadership team will manage a fully integrated team operating within common processes and performance management systems. Full participation by the Coast Guard is built into every level and function within the ICGS team.

Lockheed Martin will provide an advanced, fully integrated command and control system and information network across all the new and upgraded Deepwater cutters, aircraft and associated land-based facilities. Lockheed Martin is also responsible for providing fully integrated manned and unmanned aircraft and the logistics system across the entire Deepwater project.

As the leading technology solutions provider and integrator to the U.S. government, Lockheed Martin focuses on the defense, information technology and homeland security requirements of the military services and civil agencies. The Corporation's advanced technology solutions draw on world-class capabilities in systems engineering and integration, complex project management, software development and information technology. These align with emerging homeland security requirements for enhanced command and control, threat information alert and exchange, border control, critical infrastructure protection and emergency management and incident response. Lockheed Martin Corporation is headquartered in Bethesda, MD.

The cutter design and production work will be performed at Northrop Grumman's Ship Systems sector, headquartered in Pascagoula, MS.

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