WT Business Beat

By Nick Wakeman

Blog archive

Deepwater's lesson

The Coast Guard's decision to take back control of Deepwater, its inititiave to modernize its fleet and related infrastructure including communication systems, is more than a warning shot across the bow of prime contractors.

It's a direct hit.

As this morning's Washington Post reported the project has been plagued by delays and cost overruns. With heightened scrutiny from Congress, Deepwater was a project with a big target on its back.

Bearing an equal share of the criticism has been Lockheed Martin Corp. and Nothrop Grumman Corp., who shared prime contracting duties through a consortium they formed to manage the initiative.

Much of the criticism centers on a breakdown of the lead systems integrator role. That's the troubling part of all this. Isn't being a lead systems integrator what companies like Lockheed and Northrop do best?

I know there are lots of good reasons for the problems with Deepwater, but every prime contractor should be a little afraid today.

Posted by Nick Wakeman on Apr 17, 2007 at 9:54 AM

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above.

WT Daily

Sign up for our newsletter.

Terms and Privacy Policy consent

I agree to this site's Privacy Policy.