Utilization of the Coast Guard Yard for Vessel Repairs and Alterations

Published by the Government Accountability Office on 1971-04-20.

Below is a raw (and likely hideous) rendition of the original report. (PDF)


        Dear       Admiral    Bender:

                We have made a survey               of selected         activities          at the Coast Guard Yard
        (Yard),      Curtis      Bay, Maryland,         in which we examined                  into      the use being        made
        of Yard facilities.                Yard activity         has amounted            to approximately              $17 mil-
        lion    annually        during     the last     several       years,        but the scheduled               workload
        for fiscal        year 1971 was the lowest                since       fiscal       year 1960.          Moreover,
        even lower workloads               are anticipated          during        fiscal      years       1972 and 1973.
        The records         indicate       that while      a return         to greater          activity        is antici-
        pated after         fiscal     year 1973, responsible                 Coast Guard officials                  are con-
        cerned     that     during     the intervening           period       the Yard cannot              maintain       an
        economically          viable     industrial       operation.

                In view of the above,         we inquired      into    the potential        for increased
        use of the Yard for repair            and alteration        work.      Headquarters       schedules
        certain     vessels      into  the Yard bi-annually         for planned      work.       However,
        there     is a considerable       amount   of additional         work performed        at the dis-
        cretion      of District      Commanders   at commerciai         shipyards,

                 During      fiscal          year 1970, the five districts                       in the Eastern         Area
        paid about         $3.4 million                to commercial         shipyards         for repair        and alteration
        of vessels         stationed             in these districts.               Our inquiries           at the First
        District        showed that,               for the larger          vessels       assigned       to that District
        (vessels        133 feet and longer),                    23 contracts          totaling        about     $1.1 million
        were awarded            for repair             and alteration          work at commercial              yards during
        fiscal       year 1970.              On the basis          of the type of work involved                     and the
        capabilities           of the Yard,               it appeared        that    the work performed              under     i9 of
        these contracts,                 at a cost of about               $860,000       could      have been performed
        at the Yard.              However,           there    were no formal           procedures         or criteria        for
        determining          whether           this      work should       have been performed               at the Yard or
        at commercial             facilities.               Consequently,         we could         not determine        whether
        the arrangements                 followed         were to the greatest               overall      benefit      of the
        Coast Guard.

              - In view of the significant                     amount   of repair      and alteration      work
        being     contracted     for commercially                 and the current       need for additional
        workload       at the Yard, we believe                  that  District     Commanders       should  be
        required       to document   decisions               for obtaining      repair    and alteration       work.

                                                  50TH     ANMVERSARY              192%-7971
Such documentation           should    include  evidence    of consideration      of the Yard's
capabilities       and    should    demonstrate    that  the decisions       made represent  the
greatest     overall      benefit    to the Coast Guard.

       We appreciate          the cooperation        and courtesies   extended  to us by the
Yard and District           officials       during   our survey.    We would appreciate       your
advice   as to any        action      taken    by the Coast Guard on the matter       discussed
in this    letter.

                                                        Sincerely     yours,

                                                        Assistant     Director
Admiral    Chester       R. Bender
The Coast Guard