June 26, 2007
Coast Guard announces new Deepwater contract
The U.S. Coast Guard reports that it has signed task orders on a recent contract modification for the Integrated Deepwater System (IDS) program. The task orders were issued to Integrated Coast Guard Systems (ICGS) of Rosslyn, Va.
ICGS is a joint venture between Lockheed Martin Maritime Systems & Sensors, based at Moorestown, N.J., and Northrop Grumman Ship Systems, based at Pascagoula, Miss.
Changes to the contract that take effect June 25, 2007, address work to be completed during the next 43 months--June 2007 through January 2011--under the IDS program. This new 43 month period of performance is referred to as "Award Term 1."
The Coast Guard awarded ICGS the original Deepwater contract for a five-year base period that began June 25, 2002. The original contract specified a potential for five additional award terms, of up to 60 months each.
Following an extensive Coast Guard review of the ICGS joint venture's performance through December 2005, the Deepwater program notified ICGS on May 2006 that the performance period of Award Term 1 would be for 43 months, beginning with the completion of the base period in June 2007 and ending in January 2011.
"Changes in the terms and condition of the Award Term 1 contract better aligns the relationship between government and industry, clearly defining the roles of each--in program management; requirements development; contracting actions; and compliance enforcement--according to industry standards and departmental procurement and financial management policies," said Rear Adm. Ronald J. Rábago, Program Executive Officer, Integrated Deepwater System (PEO IDS). "Changes in this contract will help the Coast Guard achieve the best value for the taxpayers and the government, and will change the relationship with ICGS to ensure that we deliver the assets, services and capabilities crucially important to the men and women of our Coast Guard operating forces."
Aligned with Coast Guard Commandant Adm. Thad W. Allen's orders and the direction of the U.S. Congress, the new Award Term 1 contract holds industry accountable for work performed under forthcoming delivery/task orders. In accordance with the terms of the contract, Award Term 1 provides ICGS the opportunity to perform work during the '07-'11 period, does not guarantee the award of any future delivery/task orders to ICGS.
There is no required minimum order under Award Term 1; the value of the contract will be determined by further government-industry negotiations as ICGS submits proposals for specific work planned as part of the award term.