The U.S. Coast Guard is seeking to recover its losses for patrol boats built under its Deepwater Modernization Program. The service filed a letter May 17 with Integrated Coast Guard Systems, a joint partnership between Northrop Grumman and Lockheed Martin that holds the contract, canceling acceptance of eight 123-foot patrol boats delivered to the service in 2004 and 2005.

The Coast Guard has been deeply troubled by the shortcomings of its $24 billion Deepwater Modernization project that produced some new craft deemed so flawed and unseaworthy that, according to the New York Times, they were retired before they could even put to sea.

ICGS spokeswoman Margaret Mitchell-Jones said the companies will evaluate the letter and respond accordingly. The ships, originally 110-foot cutters that were rebuilt and upgraded, developed a number of problems when they were launched, from hull deformation to propeller-shaft misalignment issues.

The correspondence is the first step in the Coast Guard's effort to be reimbursed for the ships that it has been obliged to scrap. Each vessel cost between $87 million and $94 million to build.

In the letter, Coast Guard Contracting Officer Pamela Bible said that ICGS engineers failed to provide to the Coast Guard their analysis of the failures in the 123 footers. She added that the Coast Guard is certain that it did not take any action or activity that had "any material impact on these failures."

During a hearing before several House Homeland Security subcommittees on May 17, acquisition-chief, Rear Admiral Gary Blore said the Coast Guard is adapting to the loss of the ships, but acknowledged that a gap exists between the number of patrol boat hours they have and those they need. "We are frustrated in our attempts to bring the eight 123 cutters on line; we are disappointed," Blore said.

"We relied too much on the ICGS to do the work," said Coast Guard Commandant, Admiral Thad W. Allen, in announcing that the shipbuilding program was to be taken over by the Coast Guard.

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