Through drastically restructuring its processes, the service aims to move from confusion to creative synergy.
Congressional and press scrutiny of the Coast Guard's Deepwater recapitalization program has been increasingly intense. Generally, observers have concluded that the service cannot execute a complex system of acquisition because it suffers from internal inefficiencies, external confusion about who is accountable for what, and a lack of standardized processes. And clearly the current internal organization has, indeed, led to certain instances of ineffective management of contractors. Rather than acquisition harmony, the result has been a rising level of cacophony.
The requirement to overhaul acquisition functions was forged in response to the 11 September 2001 attacks and to Hurricanes Katrina and Rita. Acquisition project execution requirements have increased fivefold over years past. In the years following 9/11, the Coast Guard has built an acquisition project portfolio of more than $25 billion, with an annual obligation of more than $1.3 billion.
Several congressional committees have demanded a radical restructuring of how the Coast Guard conducts its acquisition business, if not even more widespread change throughout the service. But in May 2006—well before the recent tumultuous review cycle—the service began a no-holds-barred examination of its acquisition structure and processes.
At the direction of Coast Guard Commandant Admiral Thad Allen, in July 2007 the service is introducing a dramatically restructured and integrated Acquisition Directorate (CG-9 in the numbered staff) to adequately equip the world's leading maritime security enterprise. This constitutes the launching point for building capabilities and competencies required to strategize and execute Coast Guard acquisition efforts.
The legacy Acquisition Directorate, Deepwater Program Executive Office, Head of Contracting Activity, and Research and Development program will now all be led by a Chief Acquisition Officer as head of CG-9. This consolidation will allow the service to focus limited acquisition resources more effectively, leverage the aggregate capabilities of acquisition-related staffs, and enhance workforce competencies in critical areas—particularly program management and contracting.
It is the first step in a service-wide restructuring of mission support elements. Acquisition, engineering, logistics, and human resource functions will be integrated into an architecture that supports Coast Guard mission execution through the acquisition and sustenance of systems from cradle to grave, or through their life cycle. Major systems will be supported by "product line." This is accomplished via integrated product teams that exist throughout the system's life cycle and are populated with functional experts from the support, resource, and requirements disciplines.
The Blueprint
In crafting its strategic Blueprint for Acquisition Reform, the Coast Guard has been guided by four principles.
- Program managers must become the fundamental actors in conceiving and carrying out the acquisition of major assets and systems; they are the "face" of the program. These managers and integrated project teams, augmented through a competency-based support matrix, will be the heart of the enhanced acquisition process. A project manager must be empowered, semi-autonomous, resourced, trained, and accountable in his or her role as the touchstone for project execution.
- People are the most critical element in building an effective program. The capabilities and numbers of acquisition personnel, both uniformed and civilian, must be significantly increased. Competition for acquisition and contract professionals is intense, particularly within the Washington arena. The service must show commitment to the recruitment, development, and retention of a qualified and appropriately sized workforce to accomplish its goals.
- Acquisition processes must more effectively enable operations within the service. The generation of well-considered requirements, synchronized provision of required funding, and competent acquisition program management are all necessary for this to occur.
- Systems management is being reshaped into life-cycle support for assets using a product-line methodology. This means that an asset will be supported by an integrated team of functional experts from different disciplines, starting during concept development and running throughout its life cycle. While leadership of the team may change depending on the stage of maturity of an asset, the team's core competencies will be constant.
The confluence of these four principles and other changes mandated in the Blueprint will facilitate a more disciplined and integrated approach for the Coast Guard. In turn, this will enhance the acquisition process and mission execution.
Restructuring in Action
The restructured organization must meet three basic requirements:
- The acquisition of goods and services to sustain the service. This is generally a procurement contracting activity accomplished in the field. The addition of a senior executive service Head of Contracting Activity will provide adequate governance, advocacy, and oversight.
- One area where the Coast Guard has traditionally been effective is the acquisition of operational systems of a single asset class. An example is the procurement of 69 87-foot coastal patrol boats on a $350 million contract, accomplished on time and ahead of schedule. The service must retain the capability to acquire stand-alone (single asset class) systems to meet future requirements.
- More problematic has been the acquisition of complex systems involving multiple assets that are designed to operate in an integrated network. The challenge here is to ensure that the Coast Guard is fully capable of governing the process of systems integration. Adequately developing this capability presents the most formidable challenge for the Coast Guard.
As a mid-size federal agency, the service must be able to employ systems integrators that are either governmental or commercial when appropriate. For the Coast Guard to succeed in its acquisition approaches, it must be able to leverage both COTS (commercial-off-the-shelf) and GOTS (government-off-the-shelf) components within a system architecture. Working successfully with integrators, using proven components (COTS/GOTS) and largely non-developmental software, will enhance the Coast Guard's ability to acquire systems that meet mission demands at lower technical risk and cost.
For this integration partnership to succeed, appropriate oversight and control at the program management and executive levels must be achieved. It is essential that the Coast Guard always lead, provide oversight, and establish metrics for integration efforts.
Through execution of the Blueprint for Acquisition Reform, of which this consolidation is a subset, the service aims to become a model mid-size federal agency for combining acquisition, resources, and operations into a synergistic partnership. Using a restructured acquisition process, the Coast Guard will more effectively deploy and support new assets while performing as the lead maritime security arm of the U.S. government. Creative synergy—rather than fractious efforts—will result.
Rear Admiral Currier has served as the Coast Guard's Assistant Commandant for Acquisition since 2005. A Level III Certified Program Manager, he previously served on the HH-60H/J Class Desk at Naval Air Systems Command. As an aviator he has logged more than 6,000 flight hours in Navy and Coast Guard fixed and rotary wing aircraft. He is a member of the Naval Institute's Board of Directors.