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Date: Fri, 20 Apr 2007 00:55:08 -0400
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From: "James M. Atkinson" <jm..._at_tscm.com>
Subject: Justice Department investigating Deepwater for possible fraud
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http://www.fcw.com/article102499-04-18-07-Web
Justice Department investigating Deepwater for possible fraud
BY Jason Miller
Published on April 18, 2007 The chairman of the
House Transportation and Infrastructure Committee
said today that the Justice Department is
conducting its own inquiry on the Coast Guards Deepwater program.
Rep. James Oberstar (D-Minn.) said during a
hearing on the problematic $24 billion initiative
to replace the Coast Guards aging fleet that DOJ
would look into the issues of fraud by the joint
team of Lockheed Martin and Northrop Grumman.
Rep. Elijah Cummings (D-Md.), chairman of the
committees Coast Guard and Maritime
Transportation Subcommittee, called for an
investigation last week. [I]t is time to salvage
equipment and parts from the 123-foot patrol
boats and begin a civil and criminal
investigation into how the federal government and
the American taxpayers were sold a boat that is unsafe, he said.
Oberstar added that as disturbing as the Coast
Guards decision to abandon the 123-foot patrol
boats was, the management failures are even more
upsetting. He said he would await full judgment
until after the hearing and possible investigation.
The Coast Guard earlier this week removed
Lockheed Martin and Northrop Grumman from the
lead systems integrator role and moved it in-house.
Margaret Mitchell-Jones, communications director
for the Integrated Coast Guard Systems a
Lockheed Martin and Northrop Grumman joint
venture -- said the Justice Department notified
the two companies in December 2006 that they were
conducting an investigation and the companies
should not destroy any information related to the program.
We cannot comment on whether indictments were
handed down, Mitchell-Jones said. DOJ told us
indictments are confidential so we cannot comment either way.
But Mitchell-Jones added that having a do not
destroy order from Justice doesnt mean anything is wrong.
DOJ is just doing its job, she said.
Coast Guard spokesman Cmdr. Jeff Carter referred
all questions about a possible investigation to DOJ.
Two witnesses during the hearing told lawmakers
that actions by Lockheed Martin, Northrop Grumman
and the Coast Guard were more than simple mistakes.
They were informed, deliberate acts, said
Michael DeKort, a former Lockheed Martin systems engineer on Deepwater.
James Atkinson, president and senior engineer at
the Granite Island Group, an electrical
engineering company that reviewed the data
protection capabilities on the cutters, said the
ships are a liability to national defense because
the information technology on board does not meet
stringent certifications to protect data.
He recommended the committee consider debarring
both companies until the fraud investigation is
completed. He said Congress should pull the plug
on the Coast Guards access to any classified
network including the militarys secure IP network.
The committee should consider every Coast Guard
asset vulnerable until an independent and
rigorous inspection done by someone outside of
the Coast Guard is completed, Atkinson said.
The Navy should handle the Coast Guards
procurements until the Coast Guard proves it can do it themselves.
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