The Patrol Coastal Ship and Rigid Inflatable Boat will provide the U. S. Special Operations Command with improved maritime mission capability. The Navy acquired these vessels initially using the nondevelopmental item acquisition approach and awarded firm fixed-price contracts totaling $140 million for the Patrol Coastal Ship and $7 million for the Rigid Inflatable Boat. Our objective was to determine the validity of five Hotline allegations concerning the Naval Special Warfare Patrol Coastal Ship and Rigid Inflatable Boat Acquisition Programs. We also reviewed the adequacy of management's implementation of the DoD Internal Management Control Program and applicable management controls. Four of the five allegations were not substantiated (Appendix A). For the remaining allegation, we concluded that the Naval Sea Systems Command deviated from the nondevelopmental item acquisition approach without conducting necessary risk analyses to support the decision. Also, the Rigid Inflatable Boat Project Manager awarded a firm fixed-price contract for the boat using insufficiently validated technical data. As a result, the Patrol Coastal Ship has cost growth ranging from $53 million to $62 million over the initial cost of $140 million and the Rigid Inflatable Boat has cost growth of $3 million over the initial $7 million cost (Finding). No quantifiable monetary benefits will be realized from this audit (Appendix C). Use of data gathered from this audit will allow the Navy to avoid similar future problems. We recommend that the Commander, Naval Sea Systems Command, properly document as lessons-learned the events that occurred in the Patrol Coastal Ship and Rigid Inflatable Boat Acquisition Programs and disseminate these lessons-learned to appropriate naval acquisition officials.
DOD Hotline Allegations Regarding the Naval Special Warfare Patrol Coastal Ship and Rigid Inflatable Boat Acquisition Programs
1995
28 pages
Report
No indication
English